Velocimeter - The Velodrome Fork On Canto With 960% Returns
Yield On Canto If You Dare
Newsletter Format
In every context, I’m interested in listening to dedicated, experienced professionals.
There are professionals covering each of the fields I’ve ventured into thus far and I’ve decided to niche down in order to bring the heat to a sea of cold, dying newsletters.
Topics To Date:
-Macroeconomics - Best Suited For TradFi Veterans
-General Crypto News - Best Suited For Teams and Technology
-NFTs - Too Many Experts / Not Enough Personal Interest
-Tutorials - Not Enough Personal Interest
-Proven Crypto Projects -Less Outsized Opportunity
New Crypto Projects - The Alpha I Can Curate
There are two ways to approach your bleeding-edge crypto research funnel.
Aggregate information through newsletters, Twitter, Discord, Telegram, and as many research platforms as you can handle. Then, research each of them across several platforms just to disqualify the majority of scams, and hope you’re onto something.
OR
Find legendary curators.
My Curation Edge:
-I meet with project leaders daily.
-I monitor and engage in Discord, Telegram, and Twitter daily.
-I scan 50+ newsletters daily.
A Note On Risk
Make a new wallet for each degen play, it’s easy to do.
Locking unproven tokens for years is common in crypto but a relatively crazy thing to do in the world of investing.
I stay in as long as I care to feel exposed, but treat it as the dangerous exposure it is.
Project Of The Week
Premise
Velocimeter is a DEX on Canto. Users can:
Swap tokens
Provide liquidity
Farm Flow
Lock Flow for veFLOW to vote and receive bribes
Solidly forks like Velocimeter are typically used by other protocols to properly incentivize their own liquidity. Successful liquidity bribing campaigns throughout crypto can draw in thousands of dollars per dollar spent on bribes. Velocimeter aims to be the main DEX for LPs and therefore protocol partnerships on Canto.
Tokenomics
FLOW - ERC-20 utility token of Velocimeter
veFLOW - ERC - 721 governance token in NFT form
FLOW emissions are used for liquidity provider rewards while veFLOW is used for governance and therefore liquidity direction from bribes.
FLOW can be looked, or vote-escrowed, for 1 week to 4 years to receive veFLOW, with the best terms at 4 years of course.
Because veFLOW comes in veNFT form, it is transferable even while the underlying FLOW remains locked. This is one of the latest developments across Solidly forks in order to further incentivize liquidity.
FLOW Distribution v2
300M FLOW have been distributed as follows:
220M FLOW locked into veFLOW as follows:
68M for v1 veFLOW holders at snapshot
23M for Velocimeter Protocol owned NFTs
129M for future partners to bribe LPs
80M FLOW as follows:
53M fed into the redeemer for the community to redeem FLOWv1 for FLOWv2
19M set aside for V2 emmissions
4.5M for the team
4.3M for future use
Protocol Owned Liquidity
Velocimeter owned FLOW will be used to vote on various pools, mostly the FLOW:USDC and other core FLOW pools.
Protocol owned rewards will be fully locked to increase protocol voting power. Theoretically, this is supposed to offset token inflation. In reality, we’ve seen that this is one factor against inflation, but protocols ultimately need to generate revenue greater than emissions, i.e. conduct real business.
Protocol emissions come from trading fees which are:
.03% for stablecoins
.25% for volatile coins
Yield Opportunity
My Thoughts
Ultimately the success of a DEX like Velocimeter depends on trade volume. If Canto can attract liquidity and Velocimeter can offer the lowest slippage trade experience for the chain, they’re in business.
In a generally bearish market, I like the idea of LPing the new token with a stable like USDC. I would of course see it differently if I was expecting price appreciation on FLOW.
Due to recent market events and massive regulatory pressure, I’m on the sidelines for now but I’ll watch closely and consider short-term farming.
We’re in definitely dangerous degen territory and far away from financial advice.
Other Thoughts On This
Other Prominent Solidly Forks
Thank you for reading!
Disclaimer: Opinions here are my own. None of this is financial or investment advice. You should always do your own research, form your own opinions and make your own decisions.