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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Exchanges (DEX)

Velodrome

# Velodrome Active users (daily) Methodology

## 1. Overview

Daily active users (DAU) for Velodrome measures the number of unique addresses that executed at least one trade on the Velodrome decentralized exchange on a given day. This metric captures trading activity across all versions of the Velodrome protocol (V1, V2, and V3/Slipstream) on the Optimism blockchain. The calculation identifies actual user addresses (not contract addresses) who initiated swap transactions, providing a measure of real user engagement with the protocol.

## 2. Data sources

The calculation relies on the following raw data sources:
- **Velodrome protocol swap events**: Parsed `Swap` events from Velodrome V1 (`Pair_Swap_event`), V2 (`Pool_Swap_event`), and V3 (`CLPool_Swap_event`) smart contracts deployed on Optimism
- **Optimism transaction records**: Complete transaction data including sender addresses (`from_address`) and transaction hashes
- **Denylist configuration**: Hardcoded list of trading pair addresses excluded due to limited price feed support for low-liquidity tokens

## 3. Step-by-step calculation

### Component A: Trade event collection
- **Purpose**: Gather all swap events across Velodrome protocol versions
- **Logic**: Extract swap events from Velodrome V1 (starting June 1, 2022), V2 (starting June 1, 2022), and V3/Slipstream (starting June 18, 2024) smart contracts on Optimism. For V1 and V2, calculate net token changes using `amount0In` minus `amount0Out` and `amount1In` minus `amount1Out`. For V3, use direct `amount0` and `amount1` values. Join each swap event with corresponding transaction data using `transaction_hash` to identify the actual user who initiated the trade.
- **Key fields**: `block_timestamp`, `transaction_hash`, `log_index`, contract `address`, `sender` (contract user), `from_address` (actual user), token amounts, and protocol version classification

### Component B: Data quality filtering
- **Purpose**: Remove problematic trading pairs from the analysis
- **Logic**: Apply a denylist that excludes specific trading pair addresses known to have limited price feed support for low-liquidity tokens. Currently excludes the address `0xa5ee7dfef90310f4444323be3b3505c85ab67755` on Optimism. This ensures the DAU metric only includes users trading liquid, properly supported token pairs.
- **Key fields**: Trading pair `account_address` and `chain` for exclusion matching

### Final aggregation
- **Combining components**: Union all swap events from V1, V2, and V3 protocols after applying the denylist filter
- **Time aggregation**: Truncate `block_timestamp` to daily boundaries using day-level granularity to group all trades within each 24-hour period
- **User identification**: Use the `user_address` field (derived from transaction `from_address`) rather than contract addresses to identify actual users
- **Final calculation**: Count distinct `user_address` values per day, classifying all users as 'Trader' type within the 'exchanges' market sector and 'dex' business segment. Apply chain availability filtering to ensure data completeness before finalizing daily counts.

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

Unique revenue-generating users over a fixed 24-hour window.

VelodromeVELO

Active users (daily)

Active users (daily)

Competitive landscape

Chain breakdown