Liquidity providers deposit funds into Velodrome and stake their LP tokens to receive VELO tokens in proportion to their share of the votes (token incentives).

Velodrome is a non-custodial exchange protocol built on Optimism. Velodrome was founded by veDAO members and launched in 2022.

VELO tokenholders own and govern the protocol. They vote which pools they wish to earn trading fees from (revenue), while the pools' unstaked liquidity providers earn the remainder of the trading fees (supply-side fees).

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Velodrome

# Velodrome Tradeable pairs Methodology

## 1. Overview

The Velodrome tradeable pairs metric measures the cumulative number of unique trading pairs available on the Velodrome decentralized exchange across all its versions on Optimism. This metric tracks the growth of available trading pairs over time, providing insight into the expansion of liquidity options and market coverage on the platform. The calculation aggregates pair creation events from three Velodrome versions (v1, v2, v3) and maintains a running total of all tradeable pairs that have been created since inception.

## 2. Data sources

The metric relies on the following raw data sources:

- **Blockchain events**: Parsed Optimism blockchain events for trading pair creation from three Velodrome protocol versions
  - Velodrome v1: `PairFactory_PairCreated` events containing pair addresses and constituent token addresses
  - Velodrome v2: `Factory_PoolCreated` events containing pool addresses and constituent token addresses  
  - Velodrome v3: `CLPoolFactory_PoolCreated` events containing pool addresses and constituent token addresses
- **Token metadata**: Token reference data providing symbols and decimal places for ERC20 tokens
- **External data**: Chain availability configuration data for filtering and data validation

## 3. Step-by-step calculation

### Component A: Trading pair identification

- **Purpose**: Identifies all unique trading pairs created across Velodrome versions with their creation timestamps and token metadata
- **Logic**: Extracts pair creation events from three different Velodrome factory contracts on Optimism. For each version, the process captures the pair contract address (from `pair` or `pool` field), the two constituent token addresses (`token0` and `token1`), and the block timestamp when the pair was created. The data is unified across all three versions using consistent field mapping, with each record tagged by chain (Optimism) and protocol version. Token metadata is then enriched through left joins to add decimal places and symbols for both tokens in each pair, creating human-readable pair names in the format "TOKEN0-TOKEN1"
- **Key fields**: `account_address` (pair contract address), `token0_address` and `token1_address` (constituent tokens), `block_timestamp` (pair creation time), `token0_decimals` and `token1_decimals` (token decimal places), `account_name` (formatted pair name), `chain` and `version` (protocol identifiers)

### Component B: Daily pair creation aggregation

- **Purpose**: Determines the first appearance date for each unique trading pair and aggregates new pair creation counts by day
- **Logic**: For each unique pair address, identifies the earliest creation date by truncating the block timestamp to day precision and taking the minimum value. This handles cases where the same pair might appear in multiple events by ensuring each pair is only counted once on its first appearance date. The process then groups by day and chain to count the approximate number of distinct new pairs created each day using approximate count distinct aggregation. Days with no new pair creation are filled with zero values using gap-filling logic to ensure a complete time series
- **Key fields**: `timestamp` (daily boundary), `timestamp_grain` (set to "day"), `chain` (Optimism), `pair_count` (new pairs created on that day)

### Final aggregation

- **Combining components**: The daily new pair counts are processed through a cumulative sum calculation partitioned by chain and ordered by timestamp
- **Currency conversion**: Not applicable - this metric counts pairs rather than monetary values
- **Time aggregation**: Daily time boundaries are used throughout, with timestamps truncated to day precision for consistent aggregation
- **Final calculation**: The final tradeable pairs count is calculated as a running cumulative sum of new pair counts over time within each chain partition. This produces a monotonically increasing count representing the total number of tradeable pairs available on each date. The result undergoes finalization processing for schema validation, data quality checks, and forward-filling of any remaining gaps, followed by chain availability filtering to ensure data is only provided for supported time periods and chains

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Number of unique token pairs available for trading on the exchange.

VelodromeVELO

Tradeable pairs

Tradeable pairs

Competitive landscape

Chain breakdown