DEXes · Review
ActiveVelodrome V1 Review 2026: A Small Solidly-Style AMM on Optimism
Velodrome V1 is a Solidly-based automated market maker on Optimism with a small pool of liquidity. It suits DeFi users who already know this design, but the thin liquidity limits it for everyone else.
By the DappsAtlas editorial team · Updated
DappsAtlas score
6.0/10
Mixed
Our verdict on Velodrome V1
6.0/10Velodrome V1 is a Solidly-based AMM on Optimism that suits DeFi users who already understand liquidity pools and want to use or study this design. Its strengths are the established model, the low-cost Optimism environment and two listed audits. The main caveat is size: with roughly $299K in TVL, liquidity is thin, so larger swaps may face poor pricing. Fees and team details are not published in the listing, so check the app and the audit reports before depositing.
Score breakdown
How Velodrome V1 scores
- Security
- 6.0/10
- Ease of use
- 6.0/10
- Fees
- n/a
- Features
- 6.0/10
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 Velodrome V1?
Velodrome V1 is a decentralized exchange on the Optimism network. It is an automated market maker based on the Solidly design, and it has been tracked since mid-2022. The Velodrome Finance homepage presents the project as the central liquidity hub on Optimism.
This V1 listing currently holds about $299K in total value locked, and the 7-day change is roughly flat at -0.1%. Two audits are listed. The project's own token is shown in the listing as AERO.
The team, fee schedule and detailed audit findings are not published in the listing. Anyone considering it should check those details in the app and the audit reports directly.
How Velodrome V1 works
Velodrome V1 is an automated market maker. Instead of matching buyers and sellers in an order book, it holds tokens in smart-contract pools. A trader swaps one token for another against a pool, and the price is set by a formula based on the pool balances.
The design follows Solidly, which uses different pool curves for different kinds of assets. Pairs that should trade near the same price, such as stablecoins, can use a tighter curve, and volatile pairs use a standard one. That helps reduce slippage on like-for-like swaps.
Liquidity providers deposit tokens into pools and take on the risk that the pool's token ratio shifts against them. The exact incentive and reward mechanics of this deployment are not described in the listing, so check the app for current details.
6 features
Key features
01
Solidly-based AMM
The exchange is based on the Solidly design, which uses specialised pool types for different asset pairs.
02
Token swaps
Users can swap tokens directly against on-chain liquidity pools, with no order book and no account to open.
03
Liquidity provision
Anyone can deposit assets into pools and take part in the trading activity those pools generate.
04
Optimism deployment
The protocol is deployed on the Optimism layer-2 network, where gas costs are generally lower than on Ethereum mainnet.
05
Audits listed
The listing shows two audits for the project, which is a positive sign for contract review.
06
Liquidity hub positioning
The Velodrome Finance homepage describes the project as the central liquidity hub on Optimism.
Pros and cons
What we like
- Based on the Solidly AMM design, a known model with specialised pool types
- Runs on Optimism, where transaction costs are generally lower than on Ethereum mainnet
- Two audits are listed for the project
- Trading stays non-custodial, so users keep control of their wallet
- Operating since mid-2022, which gives it a longer history than many newer DEXes
Watch out for
- Total value locked is only about $299K, so liquidity is thin and larger trades may see heavy price impact
- Runs on one chain only, Optimism, with no multichain option
- Audit details are not summarised in the listing beyond a count of two, so scope and findings need checking by the user
- Solidly-style designs add complexity, including lock-based voting and emissions, that can confuse newcomers
- Fee levels, token details and team information are not published in the listing, so costs and incentives are hard to judge up front
Velodrome V1 fees
The listing does not publish swap fee levels or other costs for Velodrome V1. In practice, pool fees are shown inside the app for each pool before a swap is confirmed.
Users also pay network gas on Optimism for every transaction. That is typically much cheaper than Ethereum mainnet, but it is not zero.
Is Velodrome V1 safe?
The listing shows two audits, but their scope, auditors and findings are not described here, so readers should locate and read the reports. Audits reduce but do not remove smart-contract risk, and any AMM can be exposed to bugs, oracle issues or economic exploits.
The exchange is non-custodial, so your tokens stay in your own wallet except when you deposit them into pools. The main risks are smart-contract failure, impermanent loss for liquidity providers, and phishing sites that imitate the brand. No incident is recorded, and regulatory status is not published. Only use funds you can afford to lose.
6 steps
How to get started with Velodrome V1
- 1
Check that your jurisdiction permits using decentralized exchanges and that you are comfortable with self-custody.
- 2
Set up a self-custody wallet that supports Optimism and fund it with a small amount of ETH on Optimism for gas.
- 3
Open the official Velodrome site and confirm the address carefully to avoid copycat sites.
- 4
Connect your wallet and review the pool and fee information shown for the pair you want.
- 5
Start with a small swap to see price impact and gas costs before moving larger amounts.
- 6
If you want to provide liquidity, read the audit reports and understand impermanent loss first.
Who Velodrome V1 is for
Velodrome V1 is for experienced DeFi users on Optimism who understand AMM pools, impermanent loss and smart-contract risk. It is less suitable for beginners or anyone who needs deep liquidity for large trades.
Velodrome V1 FAQs
What is Velodrome V1?
Velodrome V1 is a decentralized exchange built as an automated market maker based on the Solidly design. It runs on the Optimism network and lets users swap tokens and provide liquidity to pools.
Which blockchain does Velodrome V1 use?
It runs on Optimism, an Ethereum layer-2 network. The listing names no other chain.
How much liquidity does Velodrome V1 have?
The listing shows about $299K in total value locked, with a 7-day change of roughly -0.1%. That is a small amount for a DEX, so large swaps can move prices noticeably.
Has Velodrome V1 been audited?
The listing shows two audits, but it does not describe their scope or findings here. Any DEX carries smart-contract risk, and impermanent loss applies to liquidity providers, so read the audit reports before depositing.
Is providing liquidity on Velodrome V1 risky?
Providing liquidity means depositing tokens into a pool so others can trade against it. Providers earn a share of trading activity but can lose value relative to simply holding the tokens if prices diverge. This is known as impermanent loss.
What are the fees on Velodrome V1?
Swap fees and pool-specific rates are not published in the listing. They appear in the app next to each pool before you confirm a transaction.
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How we checked
Sources
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