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U.S. Congressman Mike Collins (R-Georgia) lately disclosed a $15,000 buy of Velodrome, a comparatively small altcoin, in his filings. This funding has thrust Velodrome Finance, which has a market capitalization of round $79 million, into the highlight. The VELO token, the native foreign money of the Velodrome ecosystem, noticed a 9% improve in worth over the previous week, and is now buying and selling at $0.1122.
Velodrome is a decentralized finance (DeFi) protocol on layer-2 networks. Launched in June 2022, Velodrome Finance developed from the Solidly mission with the intention of supporting liquidity for DeFi protocols on Layer 2 options. It employs a “vote escrow” mechanism impressed by Curve Finance and Olympus DAO, designed to advertise long-term holding via staking, rebasing, and bonding.
The platform’s progressive method seeks to mitigate widespread points in DeFi, such because the “farm and dump” state of affairs, by balancing protocol emissions with charges via a rewards system. Velodrome provides varied liquidity swimming pools, with reward charges decided by person voting. The preliminary distribution of VELO concerned 400 million tokens, allotted amongst neighborhood members, companion protocols, the Velodrome staff, and the Optimism staff. VELO holders profit from transaction charges, bribes, and rebase rewards. When locked, VELO converts to veVELO, permitting customers to vote on swimming pools and affect protocol choices.
Congressman Collins’ funding has introduced consideration to Velodrome, highlighting its distinctive place throughout the DeFi area. It additionally reveals the rising involvement of U.S. politicians in cryptocurrencies, most notably presidential candidate Donald Trump’s latest show of robust help in the direction of the crypto trade, going so far as calling himself the ‘crypto President.’
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