7 months ago
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Velar, a Bitcoin native DeFi protocol, has unveiled and listed its native token, VELAR, across major DEXs and CEXs.
Velar, a crucial player in the Bitcoin (BTC) DeFi ecosystem, has officially unveiled and enlisted its native token, VELAR. The token is now live on Bybit, Uniswap, Gate.io, Uniswap, and its Dharma AMM (automated market marker).
For the uninitiated, Velar is a DeFi liquidity protocol modeled after Uniswap (UNI) and backed by Trust Machines and Artemis Capital, amongst others. It is built on Bitcoin and leverages Stacks for its smart contract functions. Put differently, it enjoys the security of Bitcoin’s base layer and the flexibility of Stack’s smart contract functionality.
🚀 Velar is LIVE!$VELAR trading is now open on @ByBit_Official and @gate_io.
Start trading and join the Velar revolution today:
🔸 https://t.co/I6hK00ZcsB
🔸 https://t.co/R6BfLtN0PL
Let's paint the world orange! 🟧 #VelarLaunch pic.twitter.com/1sGg1mXFJS
— Velar (@VelarBTC) April 3, 2024
Additionally, the platform leverages AMM liquidity for token swaps, liquidity mining, and staking. The DeFi protocol’s first version, Velar Dharma, went live on the mainnet in mid-2023, reportedly attracting a record 165K users for a Bitcoin DeFi testnet.
Interestingly, there are future versions of the protocol, including version 2 (Velar Artha), version 3 (Velar Kama), and version 4 (Velar Moksha).
The native token, VELAR, has several utilities in the above-planned versions of the protocol. So, the token listing across major CEXs (centralized exchanges) and DEXs (Centralized exchanges) is a win for the Bitcoin L2s and the protocol.
Velar Tokenomics and Market Performance
According to the Velar whitepaper, the native token will be used to participate in and govern the ecosystem. The white paper notes that there will be a maximum supply of 1 billion VELAR tokens.
Most of the VELAR tokens will be used for community rewards (35%), treasury (20%), founders and team (20%), and early purchasers (15%) as advisors and airdrop get 5% each.
At the time of writing, CoinMarketCap data showed that VELAR traded above 30 cents, with a daily trading volume above $60K and a market cap above $14M within hours of going live. Considering the current market sentiment after BTC dropped below $68K, VELAR could post an impressive performance if BTC recovers from recent losses.
However, its Total Locked Value (TVL) was still low, at about $4.4M, per DefiLlama data. But this could change as more adoption and interest surge in the protocol.
Velar’s Competition and Future Outlook
As mentioned, VELAR tokens can be found on Bybit, Uniswap, Gate.io, and Dharma. The second version, Velar Artha, modeled after Uniswap V3, aims to have a perpetual derivatives exchange with 20X leverage, complete with an updated liquidity engine.
Some have likened Velar to the Jupiter exchange of Bitcoin. Jupiter is a native DEX platform in Solana that has contributed massive volumes to the chain.
Velar, the first perp DEX on bitcoin (basically the Jupiter of bitcoin) will go live today with token listing on Bybit and Gate.
IDO was filled in 2 min.$VELAR https://t.co/BchIIQhQlC
— Byzantine General (@ByzGeneral) April 3, 2024
However, it is worth noting that the Bitcoin L2 ecosystem is gaining traction, which also brings competition.
One of Velar’s most significant competitors on Bitcoin is Sovryn. But both Sovryn and Velar are in the early stages of development, with immense growth opportunities across Bitcoin DeFi.
