Velodrome V2 Review 2026: Solidly-Based AMM on Optimism

Velodrome V2 is a decentralized exchange built on an AMM design based on Solidly. It began on Optimism, and its homepage calls it the central liquidity hub on that network. DefiLlama files it under DEXs and has tracked it since July 2023.

It is now listed on 11 chains: Optimism, Ink, BOB, Mode, Fraxtal, Soneium, Celo, Unichain, Lisk, Superseed and Swellchain. That spread covers many newer networks outside the main Ethereum chain.

Total value locked is about $5.1M, down 6.2% over seven days. That is modest, so liquidity on individual pairs may be limited. DefiLlama lists two audits and the AERO token. The project does not cover fee levels, governance details or team information.

Velodrome V2 is an automated market maker. Instead of matching buyers and sellers in an order book, it holds pairs of tokens in smart-contract liquidity pools, and a pricing formula sets the exchange rate as people trade against the pool.

Liquidity providers deposit tokens into those pools and earn a share of the activity. DefiLlama says the design is based on Solidly, a model that is generally associated with incentive systems built around the protocol token. Public information here do not detail how emissions, locking or voting work, so check the project documentation for the current rules.

When you swap, you approve the token, sign a transaction and receive the output token in your wallet. You pay a pool fee and a network gas fee, and the price you get depends on the pool's depth.

Fees are not published publicly used for this review. On AMMs like this, trading fees are generally set per pool and shown in the app before you confirm a swap, and the quoted route and price impact appear in the same place.

You also pay the gas fee of whichever network you use, such as Optimism. Liquidity providers should check each pool's fee tier and any reward terms in the pool details before depositing.

DefiLlama lists two audits for Velodrome V2, but the project does not name the auditors or say what was found. Audits reduce risk but do not remove it, and AMM contracts can still be exploited. Public sources mention no hacks or incidents, but that does not prove none has occurred.

Trading is noncustodial, so your funds stay in your wallet until you deposit them into a pool. Liquidity providers face impermanent loss and price risk on volatile pairs. Beyond that, bridging assets to the supported chains adds risk. Always confirm the site address, check token contracts, and only commit what you can afford to lose.

Velodrome V2 is aimed at DeFi users who already hold assets on Optimism or one of the other supported chains and want to swap tokens or provide liquidity. It suits people comfortable with wallets, approvals and impermanent loss. Newcomers can use the swap page, but should try small amounts first.