Introduction
Velodrome finance is an amazing solution built to perfectly incentivize the liquidity for most of the protocols on Optimism chain. Velodrome is a decentralized exchange deployed on the Optimism blockchain. It can be considered as a competitor to Uniswap given its recent popularity.
The main feature of Velodrome is that it provides rewards to liquidity pool stakers and voters in pool tokens and Rewards to voters are distributed from trading fees of that specific pool, which makes Velodrome unique from Uniswap and other DEXs.

What are VELO tokens?
VELO tokens are the native tokens developed to settle digital credits issued in the ecosystem and with the growing value of digital credits, the token holders' value also increases. The tokens are issued on the Stellar blockchain network.
These VELO tokens can also be vested, allowing users to vote on which pools to direct further VELO emissions too. This heavily incentivizes users to trade, vest, and provide liquidity to the most valuable trading pairs.
The aim of this article is to explore and assess Velodrome health in terms of Deposits and Withdrawals, Swap transactions, Liquidity providers, Liquidity pools behavior, Velodrome locks etc.. captured on daily or overall basis, with supporting graphs or visuals.
Methodolology
We will be using the below metrics to analyze the health of Velodrome finance
- Deposit and withdrawals
- Swap transactions
- Liquidity Providers
- Velodrome locks
For this analysis, we will derive data using optimism.velodrome.ez_swaps , optimism.core. fact_event_logs, optimism.core.dim_labels, optimism.core.fact_token_transfers tables. We will first look at the daily trend of deposits and withdrawals on Velodrome over time and then will analyze the daily net volume (in USD).
Then will observe how the users are ramping us on depositing tokens on Velodrome and similar pattern for Withdrawing tokens.. then, will check if deposits are dominant when compared to withdrawals etc.. Later, we will continue with swaps analysis on Velodrome, in terms of total number of swaps performed for time, total number of Swappers and total volume swapped so far on Velodrome finance.
Further, we will analyze the locked amount and duration of locks on Velodrome finance over the time and identify if any patterns are noticed with users who are locking the amount for a particular time period, with supporting graphs or visuals.
Deposits Vs. Withdrawals
Here are the visuals that shows the daily metrics of deposits and withdrawals over Velodrome pools in the past few months on Optimism chain assessed in terms of Total amount of tokens withdrawn and deposited on Velodrome pools, Total number of users who have deposited / withdrawn tokens, Total number of deposit and withdrawal transactions performed on Velodrome pools.
Swap transactions
In general, Swapping is the process of conveniently exchanging crypto assets for their equivalent value in another coin or token and below are the visuals that shows the overall and daily metrics of Swap transactions on Velodrome finance over the past few months on Optimism chain.
- Total number of Swap transactions and its daily trend
- Total number of users who performed Swap transactions and its daily trend
- Total Swap volume (in USD) and its daily trend on Velodrome etc..
Liquidity Providers Metrics
Liquidity Pools are a place to pool tokens so that users can use them to make trades in a decentralized and permission less way. These pools are created by users and decentralized apps who want to profit from their usage. To pool liquidity, the amounts a user supplies must be equally divided between two coins, which is a primary token and a base token (usually could be a stable coin).
Here are the visuals that shows the overall and daily statistics of LP transactions on Velodrome finance, assessed in terms of the Total number of LP transactions performed, Total number of users who provide liquidity to pools, Total or average amount of liquidity provided on Velodrome etc.. over the past few months on Optimism chain.
Velodrome Locks
By locking their tokens, users can steer emissions to specific pools and receive a cut of revenue or profits from protocol fees on Velodrome finance. So, users will be able to vote on velodrome if they lock their tokens for a certain period of time. Here are few graphs or visuals that shows the daily trend of lock transactions and the amount of tokens that were locked over a period of time, Top 15 users or wallets that have locked maximum token during the time period on Velodrome etc..
Key Findings
A maximum number of users around 22.244K have deposited tokens for sAMM-USDC/DAI pool on Velodrome finance. But, however when compared to token withdrawals, the total number of Deposits are always dominant on Velodrome finance over time captured on a daily basis.
A maximum volume of around 1.32M have been deposited by vAMM-WETH/OP pool on Velodrome finance.
Conclusion
According to the above graphs or visuals, here are few highlights noticed on Velodrome finance:
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A maximum number of users around 22.244K have deposited tokens for sAMM-USDC/DAI pool on Velodrome finance. But, however when compared to token withdrawals, the total number of Deposits are always dominant on Velodrome finance over time captured on a daily basis.
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A maximum amount of Swap volume (in USD) of 94.95M has been recorded on 29th of July 2022, further which there has been a slight decline in the swap volume trend while approaching towards the second week of November 2022.
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Highest swap transactions were observed with a count of 74.54K on 9th November 2022 on Velodrome finance, where as the total number of Swap transactions performed so far on Velodrome finance is around 3.42M.
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A maximum number of lock transactions in terms of both number of lockers or users who locked their tokens and the locks count has been noticed especially during the last week of July 2022, however there seems to be mild decline while approaching towards the second week of November 2022.
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So, as an overall, there seems to be a healthy note with consistent trend while assessing in terms of deposits, withdrawals, locks, swaps, liquidity pools etc.. on Velodrome finance over the past few months.
References

Observations
Left side chart shows the list of Top 15 Wallets who have locked the most value on Velodrome finance and it is clear that the wallet address 0xe247340f06fcb7eb904f16a48c54822137 5b5b96 has maximum value locked of 81.3M.
Also, when we look at the daily statistics of total number of wallets that have locked amount on Velodrome finance, it seems a maximum number of 1483 wallets have locked maximum amount on 2nd June 2022.