Expanding Superchain Interoperability

Learn how Aerodrome and Velodrome are expanding interoperability with Entangle.

Expanding Superchain Interoperability

We are excited to share the collaboration with Velodrome and Aerodrome, the leading AMMs providing liquidity services on the Base blockchain and the Optimism Superchain.

Velodrome, founded in 2022, aims to be the Liquidity Hub for the entire Optimism Superchain by incorporating the best features of AMMs like Curve, Convex and Uniswap. Aerodrome, which launched in August 2023 on Base, is modeled on the Velodrome V2 protocol with its novel approach to democratizing liquidity rewards. Together they manage a TVL of over $800 million and monthly trading volumes of over $1.6 billion.

With the support of Entangle’s Infrastructure and omnichain tools, Velodrome and Aerodrome are well-positioned to become central to all of DeFi’s liquidity needs on their respective platforms.

Interoperability in the Superchain

Leading the way in creating cross-chain products throughout the Optimism ecosystem, Velodrome shares Entangle’s vision of transacting effortlessly and without barriers. Velodrome recently announced its roadmap of interoperability across the wider Optimism Superchain with the integration of emerging modular L2s. 

Photon Messaging, with the fastest cross-chain messaging in the field of Blockchain Infrastructure, provides Velodrome with the tools to enhance its interoperability capabilities. The Photon Messaging Protocol facilitates efficient communication between smart contracts on various blockchains, utilizing Transmitter Agents for rapid and secure data communication across the blockchain, enhancing data flow and reducing latency. They handle high-throughput data streams, ensuring messages are delivered efficiently and securely, while Watchers monitor the flow of information as well as checking for any discrepancies.

Bringing utility to Liquidity

The deployment of Liquid Vaults on the Aerodrome and Velodrome platforms streamlines liquidity provision and enhances yield generation for users, while the platforms benefit from increased stickiness of the Liquidity Positions deposited with them. Liquid Vaults allows users on Base, Optimism and any other supported chain to convert their LPs into Composable Derivative Tokens (CDTs), a liquid token representing the underlying LP. This liquid token continues to earn the rewards from the Aerodrome or Velodrome pool that the liquidity is provided in, but can also be leveraged in other Lending & Borrowing and DeFi protocols in the ecosystem. 

Users can convert their LP into the corresponding liquid CDT through the Liquid Vaults dApp, optimizing yields without further intervention on the user side. For example, if a user has a position in the OP/VELO pool with Velodrome on optimism and converts it into the OP/VELO CDT, they will then be able to seek out further yield-generating opportunities such as:

  • Providing CDT liquidity on other DEXs on Optimism
  • Lending CDTs in L&B protocols like Ajna Protocol
  • Earning points in Borpa, Entangle Labs’ gamified meme ecosystem 
  • Bridge CDTs to other L2s within the Optimism Superchain, unlocking further opportunities for supercharging yield

Customizable data to rely on

As the pace of tokenization of assets accelerates, the role of reliable data stands to expand exponentially. Our Universal Data Feeds enhance how developers, decentralized applications, and smart contracts interact with data, providing Velodrome reliable, accurate and timely pricing for tokenized assets regardless of the source of the data. By tailoring the data feeds to the relevant products, Velodrome and Aerodrome can ensure that their pricing always remains competitive and that resources can be allocated to maximize user capital efficiency.

Supercharging the Superchain

This collaboration not only enhances the capabilities of the Aerodrome and Velodrome platforms but also supports the wider ecosystem by providing stability during market fluctuations and unlocking new use cases. As the crypto industry continues to mature and disrupt sectors like finance, science and Physical Infrastructure, Entangle and Velodrome commit to reducing fragmentation and enhancing the user experience of interoperable liquidity, simplifying the omnichain transition.