We hereby inform the Velora community that the Velora Growth Committee (VGC), on behalf of VeloraDAO, has submitted an application for 200,000 OP tokens through Optimism’s Season 8 grants program, outlining a roadmap to broaden routing pathways across the Superchain and deepen stablecoin pools on Optimism Mainnet and Base. While the application has not yet been approved, it is currently in review and its AI probability of approval is “high.”
The “Why”
Following the recent completion of the VLR token launch, the DAO is actively migrating from its legacy PSP token/staking infrastructure to a Superchain-native setup. The protocol currently secures approximately $6 million in staked liquidity (sePSP2, transitioning to seVLR), but the majority remains concentrated on Ethereum Mainnet. This grant proposal presents an opportunity to migrate capital into stablecoin pools on Optimism Mainnet and Base, attract liquidity from Ethereum Mainnet/other chains, drive sustainable adoption of stablecoin pairs through dual-incentive structures, and expand governance-aligned staking on OP Mainnet.
Grant Milestones and TVL Targets
The proposal outlines objectives that align with Optimism’s Season 8 focus on growing stablecoin TVL:
Initial Milestone: Launch and incentivize a Balancer VLR/USDC pool on Optimism Mainnet as protocol-owned liquidity (POL), targeting $2 million in depth through OP incentives.
Final Milestone: Achieve and sustain ≥$4 million in stablecoin TVL migrated to Optimism Mainnet/Base, complete ≥200,000 Superchain transactions, and generate $200,000 in protocol fees.
These targets build on Velora’s proven traction: the protocol processed over 249,000 transactions across Optimism Mainnet (60,515) and Base (189,808) in August alone, representing nearly 27% of total activity. With ~$1 billion in yearly OP Mainnet volume and ~$4.5 billion on Base, Velora has demonstrated a product-market fit within the Superchain ecosystem.
Sustainable Liquidity & Strategic Integrations
Beyond immediate OP incentives, Velora is positioning for long-term sustainability through strategic ecosystem alignments. The proposal plans to integrate with Liquity’s revenue-backed PIL (Protocol Incentivized Liquidity) system and Balancer’s gauge/bribe markets. Seeding VLR/BOLD and VLR/USDC pools with treasury assets and acquiring governance stakes in LQTY and BAL tokens, Velora can maintain liquidity incentives after the grant period ends, ensuring TVL remains “sticky” rather than mercenary.
This approach addresses a common critique of liquidity incentive programs: the exodus of capital once incentives dry up. Through governance participation and reinforcing liquidity depth, Velora can create a self-sustaining system that persists beyond the initial bootstrapping phase.
Revenue Generation & Protocol Health
Velora’s financial metrics demonstrate a healthy, fee-generating protocol ready for expansion. The protocol generated $313,182 in August epoch revenue, with ~$2.79 million in fees over the past 90 days. This revenue base helps strengthen the application, showing that increased Superchain activity will translate to meaningful value accrual for the ecosystem.
The application also highlights Velora’s intent-centric architecture, which enables gasless, MEV-protected trades across chains. While Velora supports multiple chains, this infrastructure positions the protocol as critical infrastructure for seamless liquidity access across the some of the largest Superchain protocols.
Implications for VLR Holders & the Broader Ecosystem
For VLR holders (and those migrating from PSP), this grant represents multiple value drivers: increased protocol visibility within the Optimism ecosystem, deeper onchain liquidity for VLR pairs, potential revenue growth from expanded Superchain activity, and alignment with two of DeFi’s most innovative liquidity frameworks (Liquity and Balancer).
The proposal also benefits the broader Superchain by addressing a key Season 8 priority: growing stablecoin TVL. By creating deep, sustainable stablecoin pools and leveraging cross-chain functionality to attract liquidity from Ethereum Mainnet, Velora helps establish Optimism Mainnet and Base as premier venues for stablecoin trading and yield generation.
Looking Ahead
As the PSP→VLR migration continues and staking infrastructure transitions to the Superchain, the 200K OP grant, if approved, would cement Velora’s status in the Superchain/Base/Optimism Mainnet ecosystem. Specifically, extending into the Liquity and Balancer ecosystems has the potential to deepen stablecoin liquidity and broaden routing pathways across the Superchain. Velora’s application poses a strong degree of mutual benefit for both parties, clear milestones, proven transaction and revenue history, and a focus on sustainable liquidity mechanisms; it’s aligned with both Optimism’s strategic objectives and Velora’s long-term vision.
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