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Velar AMM Review 2026: Bitcoin DeFi Swaps on Stacks

Velar AMM, branded Dharma, is the swap and liquidity product of Velar, a Bitcoin DeFi protocol on the Stacks layer 2. It is a niche, low-liquidity venue best suited to users already in the Stacks ecosystem.

Stacks

By the DappsAtlas editorial team · Updated Nov 5, 2026

DappsAtlas score

6.3/10

Mixed

Visit Velar AMM

Our verdict on Velar AMM

6.3/10

Velar AMM suits users already active on Stacks who want swaps, liquidity farming and perps in one Bitcoin-focused suite. Its strength is the breadth of products built around Bitcoin layer 2 and sBTC. The main caveat is size: with only about $428,000 in TVL, liquidity is thin, and the project does not publish named audits or detailed fee tables on its homepage. Treat it as a small, higher-risk venue and size positions accordingly.

Score breakdown

How Velar AMM scores

Security: 5.5/10
Ease of use: 6.5/10
Fees: n/a
Features: 7.0/10

Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.

What is Velar AMM?

Velar is a DeFi liquidity protocol aimed at bringing trading to Bitcoin through layer 2 networks. Its AMM, Dharma, launched in March 2024 on Stacks and is the core swap and liquidity venue in a wider suite that includes a perpetual DEX, a launchpad and a bridge.

The pitch is that Bitcoin holders can trade, provide liquidity and earn rewards without leaving the Bitcoin ecosystem. The homepage names advisers and backers, including a co-founder of BoB and a BlackRock venture partner, though it does not name the core team.

Scale is modest. Tracked data shows roughly $428,000 in total value locked on Stacks, with a 7-day increase of about 8.5 percent. The VELAR token trades on centralized exchanges such as Bybit, Bitfinex and Gate, according to the homepage.

How Velar AMM works

Velar AMM, called Dharma, is an automated market maker. Instead of matching buyers and sellers, it holds pools of two tokens. Traders swap against a pool at a price set by the ratio of tokens in it, and liquidity providers who deposit tokens earn a share of the activity and extra incentives.

It runs on Stacks, a layer 2 network that settles to Bitcoin. This lets Bitcoin-related assets such as sBTC be used in DeFi without moving to a separate ecosystem. The protocol describes itself as layer-2 agnostic, so it may expand to other Bitcoin layers over time.

Around the AMM, Velar offers a perpetual DEX called Artha, a launchpad for new token projects and a bridge for cross-chain transfers. The VELAR token ties these together through staking and incentives.

6 features

Key features

Dharma AMM swaps

Dharma is an automated market maker on Stacks where users swap tokens against liquidity pools rather than order books.

Liquidity provision and farming

Liquidity providers deposit token pairs into pools and earn rewards for supplying liquidity.

Artha perpetual DEX

Artha is a perpetual swap exchange that lets users trade with leverage, with positions secured through Bitcoin-linked infrastructure.

Token launchpad

A launchpad lets projects launch tokens on the Bitcoin ecosystem through Velar.

Staking

The homepage announces that staking is live, tied to the VELAR token.

Bridge and developer SDK

A bridge is listed for moving assets across chains, and an SDK and API documentation are offered for builders.

Pros and cons

What we like

Native focus on Bitcoin DeFi through Stacks, with access to sBTC-related markets.
Broad product suite: AMM swaps, perpetual futures, a launchpad, staking and a bridge.
Developer SDK, API docs, Gitbook and Github are available.
VELAR token is listed on several centralized exchanges, giving easy access to the token.
Non-custodial design: users trade from their own wallet.

Watch out for

Total value locked is small, about $428,000, so liquidity is thin and larger trades may see heavy price impact.
The homepage mentions third-party audits but does not name auditors or link reports in the page text, and no audits are listed in tracked data.
Depends on Stacks and its Bitcoin-anchored security, so it carries Stacks network and bridge risks as well as smart-contract risk.
Fee levels for swaps, perps and the launchpad are not published in its homepage.
The team behind the protocol is not named on the homepage; only advisers and backers are mentioned.
The VELAR token is a volatile asset, and rewards from farming or staking depend on token emissions.

Velar AMM fees

Velar's homepage advertises minimal fees on swaps but does not publish specific swap fee rates, liquidity provider fee shares or perpetual trading fees in the page text. Users would see the exact fee on the swap or trade confirmation screen in the app, and in the Gitbook documentation.

On any Stacks protocol, users also pay network transaction fees in STX for each on-chain action, separate from protocol fees.

Is Velar AMM safe?

The homepage states that contracts are backed by third-party audits, but the page text does not name the auditors, and tracked data lists no audits. Readers should look for the actual audit reports in the project's documentation before depositing meaningful funds.

As a non-custodial DEX, users keep control of assets in their own wallet, but they bear smart-contract risk, impermanent loss for liquidity providers, and liquidation risk on leveraged perps. Small total value locked also means pools can be moved by modest trades. No hacks or incidents are mentioned.

6 steps

How to get started with Velar AMM

1
Install a Stacks-compatible wallet and fund it with STX for network fees.
2
Open the Velar app from the official website and connect the wallet.
3
Read the Gitbook documentation to understand the pools, fees and risks.
4
Start with a small swap on Dharma and check the fee and price impact shown before confirming.
5
If providing liquidity, learn about impermanent loss and pick pools carefully.
6
Avoid leveraged perps until you understand liquidation risk.

Open Velar AMM

Who Velar AMM is for

Velar suits crypto users who already hold STX or Bitcoin-linked assets and want to trade or farm within the Stacks ecosystem. It also fits builders interested in the SDK and launchpad. It is a poor match for anyone who needs deep liquidity for large trades or wants a long, audited track record.

Velar AMM FAQs

What is Velar AMM?

Velar is a DeFi liquidity protocol built on Bitcoin layer 2 networks, starting with Stacks. It offers token swaps, yield farming, perpetual futures and a token launchpad.

What is Velar Dharma?

Dharma is the name of Velar's automated market maker. It lets users swap tokens and provide liquidity on Stacks and earn rewards for doing so.

Which blockchain does Velar run on?

Tracked data lists Velar AMM on Stacks only. The homepage describes a layer-2-agnostic approach and mentions a bridge for cross-chain transfers, but Stacks is the confirmed deployment.

Does Velar have a token?

VELAR is the protocol's native token. Public reporting report it was listed on exchanges including Bybit around April 2024, and the homepage names Bybit, Bitfinex and Gate as places to trade it.

Is Velar safe to use?

Total value locked is about $428,000 according to tracked data, which is small. Smart-contract risk, thin liquidity and token price swings all apply, and the project does not list named audit reports in its homepage. Only use funds you can afford to lose.

Does Velar offer perpetual trading?

Yes. Velar lists a perpetual DEX called Artha, which offers leveraged perpetual swaps. Leverage can magnify losses quickly, so it suits experienced traders only.

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