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Velodrome is an AMM built to serve as the main trading and liquidity hub on the Optimism Network. Its core mechanics draw from two DeFi approaches:
Vote-Escrow - originally introduced by Curve to encourage incentives for long-term token holdersStaking/Rebasing/Bonding or (3,3) game theory - created by Olympus DAO.Together, the ve(3,3) system provides rewards tied to actions linked with Velodrome’s performance, including supplying liquidity and maintaining long-term token holdings. Liquidity providers are paid through $VELO emissions, while $veVELO holders earn protocol fees, bribes, rebases, and governance rights.
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