Velodrome Finance is a decentralized exchange (DEX) and automated market maker (AMM) operating on the Optimism Layer 2 blockchain. It serves as a central trading and liquidity marketplace, offering users low-slippage swaps, capital-efficient liquidity provision, and sustainable yield opportunities.

The platform integrates features from established DeFi protocols like Curve, Convex, and Uniswap to enhance its functionality. A distinctive aspect of Velodrome Finance is its governance model, where Velodrome NFTs (veVELO) holders vote on token emissions and receive incentives and fees generated by the protocol.

By leveraging Optimism's Layer 2 scaling solutions, Velodrome Finance provides decentralized, permissionless trading with lower fees and faster transactions, making it a competitive alternative to DEXs operating on Ethereum's Layer 1.