Velocore is a decentralized, automated market maker (AMM) built atop zkSync and Linea blockchains. It improves on the Solidly ve(3,3) model, using ve-token locking and protocol-owned liquidity to optimize capital efficiency and reduce impermanent loss. Its goal is fair compensation for liquidity providers via advanced algorithmic incentives.
On-Chain Activity
Current 24-hour trade volume hovers around USD 2,376 - tiny for DEX standards - and liquidity data is limited. It supports both spot and perpetual futures markets, but without transparent volume metrics, it's hard to gauge real depth or slippage.
Fees & Rewards
Velocore uses a ve(3,3) staking mechanism where liquidity providers lock tokens to boost yields. Fee tiers are dynamic and tied to protocol usage, prioritizing active LPs over passive participants. Precise taker/maker rates vary, but the core design drives revenue share via locked tokens.
Security & Exploits
Built fully on-chain, Velocore avoids central custody risk. However, it suffered a major exploit on June 2, 2024 - losing approximately 700 ETH (around USD 7 million) - due to a bug in its constant-product pool logic, even after undergoing audits. That incident shook trust and prompted scrutiny of its vault design and auditing rigor.
UX & Access
Velocore is fully non-custodial - users connect via zkSync wallets. There's no KYC, fiat on-ramp, or mobile app features - it's purely for on-chain traders. Interface details are limited but typical of AMM designs.
Community & Reputation
The platform is gaining attention for its innovative DeFi model, but opinions vary. Some praise its tokenomic ingenuity, while others caution that past exploits highlight real smart contract risk. Overall community trust remains cautious pending further resilience.
Strengths and Weaknesses
Strengths:
ve(3,3) model with protocol-owned liquidity for better LP incentives
Designed for capital-efficient AMM on zkSync and Linea
Fully on-chain and non-custodial - no centralized control
Weaknesses:
Very low volume (around USD 2.4K/day) and limited visible liquidity
Major exploit in mid-2024 raises security concerns
No fiat integration, no KYC, no mobile app - purely for experienced DeFi users
Fee complexity may leave casual LPs behind
Who It's For
DeFi-native users familiar with zkSync and ve-token models
Traders looking for cutting-edge protocol-owned liquidity AMMs
Who Should Avoid It
Beginners or fiat users seeking easy on-ramps via card or bank
Risk-averse users turned off by recent exploits
Anyone wanting polished UX, mobile support, or KYC
Final Verdict
Velocore is an ambitious protocol pushing forward AMM design with ve(3,3) staking and protocol-owned liquidity. But its tiny volume and severe exploit highlight critical fragility. If you understand risk, are deeply DeFi-savvy, and can accept uncertainty for innovation, Velocore is worth exploring. Otherwise, stick to more established, transparent AMMs with proven resilience.
