Velar, a Decentralised Finance (DeFi) liquidity protocol, is leveraging Bitcoin’s security through a Layer 2 agnostic approach, initially utilising the Stacks blockchain and the Clarity smart contract language. According to Bitfinex, Velar is designed to integrate Bitcoin’s foundational strength with advanced DeFi capabilities, unfolding in strategic phases to introduce sophisticated solutions like automated liquidity protocols and decentralised perpetual contracts exchanges with up to 20X leverage.
DeFi on Bitcoin via Velar and the Stacks Bitcoin Layer Two
Velar’s primary aim is to harness the strength and security of Bitcoin through a Layer 2 agnostic approach. Utilising the Stacks blockchain and the Clarity smart contract language, Velar seeks to merge Bitcoin’s foundational robustness with the dynamic capabilities of DeFi. As a leader in the Bitcoin DeFi space, Velar is designed to support a range of financial applications, from simple swaps and liquidity pools to advanced offerings like staking, farming, and Initial DEX Offering (IDOs) launchpads.
The development of Velar is structured into four strategic phases. The inaugural phase, “Dharma,” demonstrated the platform’s potential by launching an automated liquidity protocol. This phase included features such as Swap, Liquidity Pools, Staking, Farming, and IDO Launchpad, attracting significant attention and participation with over 150,000 users during its testnet phase. This initial success laid a strong foundation for Velar’s ambitious roadmap.
Building on this foundation, Velar’s next major milestone is the “Artha” phase, which will introduce the world’s first decentralised perpetuals contract exchange with Bitcoin finality, offering up to 20X leverage. This feature is poised to revolutionise the DeFi community by enabling leveraged trading within Bitcoin’s secure and reliable framework. Velar’s Layer 2 agnostic design ensures future compatibility across various Bitcoin Layer 2 solutions, promising a flexible and scalable platform that can adapt to ongoing advancements in blockchain technology.
Velar’s broader vision is to seamlessly integrate native Bitcoin liquidity with advanced DeFi services, creating a new paradigm in the financial ecosystem. Supported by robust investment backing and strategic alliances with key Bitcoin Layer 2 solutions, Velar is well-positioned to redefine the intersection of Bitcoin and decentralised finance. By offering a comprehensive suite of financial applications, Velar aims to drive innovation, enhance market liquidity, and foster greater adoption of DeFi on Bitcoin, setting the stage for a more inclusive and decentralised financial future.
What is the VELAR Token
The VELAR token is the native utility token of the Velar DeFi liquidity protocol, designed to serve as the backbone of its ecosystem. It plays a crucial role in incentivising participation, providing liquidity, and facilitating various activities within the Velar platform. As a fundamental element of Velar, the VELAR token enables users to engage in a wide range of DeFi operations, ensuring the smooth functioning and growth of the protocol. With a total supply of one billion tokens, VELAR is distributed to support community rewards, treasury reserves, the founding team, advisors, early purchasers, and airdrops.
One of the primary use cases of the VELAR token is to incentivise liquidity providers. Users who lock their assets in Velar’s liquidity pools are rewarded with VELAR tokens, promoting an active and liquid market. This incentivisation mechanism is vital for maintaining the efficiency and attractiveness of the Velar DEX and other DeFi applications. By providing liquidity, users contribute to the platform’s overall functionality and stability, ensuring that there are enough assets available for trading and other activities.
Additionally, the VELAR token is used to access premium features and services within the Velar ecosystem. For instance, users can stake their VELAR tokens to gain various benefits, such as reduced trading fees, early access to new platform features, and participation in exclusive incentivised testnets. Staking VELAR tokens is also a prerequisite for participating in IDO on the Velar Launchpad. Depending on the amount of tokens staked, users receive IDO tickets that allow them to invest in new projects launching on the platform. This staking mechanism helps build a committed and engaged community, rewarding long-term supporters with tangible benefits.
The VELAR token plays a significant role in Velar’s governance model. Token holders have the power to participate in important decision-making processes that shape the future of the platform. Through governance, users can vote on proposals related to protocol upgrades, new feature implementations, and other critical aspects of Velar’s development. This decentralised approach ensures that the platform evolves in a manner that reflects the collective interests of its community, promoting transparency and inclusivity. By involving token holders in governance, Velar fosters a more democratic and user-driven ecosystem, empowering its community to directly influence the direction of the project.
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