Author: Velora Growth Committee

Note: Special thanks to folks in the Velora forums who helped craft ideas for this article, including Curia and PGov. These ideas are not meant to be representative of any stances held by core contributors to Velora, but are meant to be an expansion of community-led discussions.

Velora Got a Campaign Extension

In a recent forum thread, Laita Labs updated the Velora community on $VLR, the Road to Velora campaign, and the most viable next steps for capitalizing on momentum-based growth. Largely, the Road to Velora campaign has been successful; it achieved its main goal of staker activation. sePSP2 experienced a weekly growth of 36%, double the rate of the average Velora volume growth. Since the start of the campaign, the volume generated by the listed tokens increased by 500% (a PSP trading volume growth by sePSP2 stakers of over 725%).

Timing is extremely important for token migration. It requires a mixture of strong market conditions, the potential for momentum, and overall community readiness. Laita Labs accordingly announced that VLR’s migration would be moved to a moment where those simultaneous conditions could be met, maximizing the chances of a successful launch.

So, what’s next? Here, we look at three main opportunities for Velora’s next phase.

Three strategic opportunities

The transition from ParaSwap to Velora presents a unique opportunity to reward long-term commitment and create sustainable value accrual mechanisms. The Road to Velora campaign serves as the foundation for this transformation, and below we lay out three opportunities to take this a step further. This analysis examines how each opportunity category addresses different aspects of protocol sustainability and user engagement, positioning Velora to compete effectively in an increasingly sophisticated DeFi landscape.

(1) New ways to earn rewards can reshape traditional incentive structures

The reward mechanisms emerging through Velora's transition deviate from standard approaches in the past. The Road to Velora campaign is a multi-layered reward system that prioritizes sustained engagement over simple (non-sticky) capital deployment. Users can earn through PSP staking, daily quest completion, referral programs, and competitive leaderboards, each designed to encourage different types of valuable behavior.

What makes this approach compelling is the integration of multiple reward vectors. Unlike protocols that rely solely on trading volume or liquidity provision, Velora's system recognizes diverse forms of value creation. The badge-based reward system creates achievement tiers that acknowledge both small and large contributors, while the weekly point reset mechanism maintains competitive dynamics over extended periods.

The technical implementation includes gas-free, one-click swap tools available for cross-chain migration on Base, removing traditional barriers to participation. The 1:1 PSP-to-VLR migration ratio with 10% of supply dedicated to migration incentives provides substantial runway for rewarding early adopters. Perhaps most importantly, these reward structures lay the groundwork for sustainable tokenomics. Rather than relying purely on token inflation, the system creates pathways for users to earn through genuine protocol contribution. It’s a model that can scale indefinitely as protocol usage grows.

Going forward, there’s an opportunity to expand Velora’s strategy to further reach users. Future marketing campaigns can target not just sePSP2 stakers, but new users and first-time stakers.

(2) InfoFi campaigns transform attention into tokenized assets

Information Finance (InfoFi) represents one of the more innovative opportunities available to Velora, addressing fundamental challenges in how DeFi protocols identify and reward valuable community contributions. InfoFi campaigns move beyond traditional social media engagement metrics to create sophisticated systems that tokenize attention, data credibility, and influence based on actual impact rather than follower counts or wallet sizes.

The mechanics of successful InfoFi implementations provide insight into Velora's potential approach. Leading platforms like Galxe Starboard have demonstrated how combining onchain metrics (TVL, trading volume, protocol usage) with offchain impact (content quality, social influence, community leadership) creates merit-based ranking systems. These systems reward outcomes rather than effort, using AI-powered algorithms to filter quality contributions and prevent manipulation.

For Velora specifically, InfoFi campaigns could address several strategic objectives all at once. They provide a mechanism to identify and reward high-impact community members who drive adoption through education, content creation, or thought leadership. They also create measurable attribution for community marketing efforts (historically one of the most difficult aspects of DeFi protocol growth to track and optimize).

The economic model is compelling because InfoFi campaigns create network effects. High-quality contributors gain recognition and networking opportunities within the ecosystem, encouraging continued participation. Projects achieve better targeting and higher-quality engagement compared to traditional marketing approaches. The result is sustainable growth flywheels where valuable contributors are incentivized to increase their involvement over time.

Industry validation is strong, with platforms like Kaito AI generating $33M in annualized revenue while distributing $72.3M to contributors through partner campaigns. When properly implemented, these campaigns can be both viable and scalable.

(3) Long term incentives establish sustainable value accrual

The third opportunity category addresses one of DeFi's most persistent challenges: creating token value accrual mechanisms that can operate sustainably over extended periods.

Throughout the years in crypto, we’ve seen both successful campaigns that demonstrate the value of aligning incentives with long-term user engagement, and others that have struggled with short-lived spikes in activity. Users naturally gravitate to systems that will give them the greatest degree of upside. Long-term incentives also serve as governance alignment mechanisms. When voting power is tied to commitment duration, the result is better decision-making by stakeholders who have genuine skin in the game. Curve Finance's model, where 44.77% of tokens are locked for an average of 3.36 years, demonstrates how effective this alignment can be in practice.

With that in mind, it’s critical that Velora designs initiatives that build lasting connections between users and the Velora ecosystem. Velora has a strong product; the challenge lies in avoiding short-term incentive boosts and instead creating long-term value for both the community and the protocol.

One path includes redesigning the tokenomics to reflect the protocol’s increased volume. Likewise, the market may react more positively when a complimentary redesign coincides with the launch of an incentive program. Incentive programs need to be designed to ensure that users stick around after the incentives end. The goal, as always, lies in attracting sticky liquidity and long-term users as opposed to farmers and short-term opportunists. One way to accomplish that is by showcasing Velora’s powerful features and ensuring that competitive incentive programs aren’t attracting more users through higher rates.

Another angle to consider revolves around attribution. When products like Velora offer multiple wallets and points of entry, there exists a tradeoff introduced between ease-of-access and fairly awarding the different marketing touchpoints that contribute to a desired outcome (in this case, using Velora’s product). One way to address this through long-term incentives could be ensuring that users who start a transaction via Velora, but trade through other interfaces, still receive credit for their actions. Retroactive attribution incentive structures could help ensure that users who use various front-ends in crypto have aligned incentives, creating a system of tightly-integrated protocols and user-bases across crypto.

When designing Velora’s future incentive structures, certain metrics could help guide the community’s decision-making. Obtaining (high-quality) data gives us more transparency into the viability of our chosen incentive structures. Some metrics that could be valuable to track in this process include:

1. Comparing trading volume among non-stakers to sePSP2 stakers.

2. Monitoring the rate of new staker growth.

3. Classifying and segmenting the new users’ history and profiles onchain.

4. Tracking the period of participation and the users’ long-term consistency.

5. Parsing the direct impact of marketing efforts (whether it’s on staking activity, user growth, etc).

Wrapping Up

These three opportunity categories position Velora at the intersection of proven DeFi mechanics and emerging crypto-native models. The combination of enhanced reward structures, InfoFi campaign capabilities, and sustainable long-term incentives addresses different aspects of protocol growth: user acquisition, community engagement, and stakeholder retention. Each opportunity type complements the others to create a comprehensive ecosystem rather than isolated features. New reward mechanisms attract users and demonstrate value. InfoFi campaigns identify and cultivate high-impact community members. Long-term incentives ensure valuable participants remain engaged over extended periods. We’re excited to develop these ideas alongside the community in the upcoming months! 🐾

Start trading: velora.xyz

Follow Velora on X (Twitter): @VeloraDEX

Join the Velora Discord: velora.xyz/discord

Author: Velora Growth Committee

Note: Special thanks to folks in the Velora forums who helped craft ideas for this article, including Curia and PGov. These ideas are not meant to be representative of any stances held by core contributors to Velora, but are meant to be an expansion of community-led discussions.

Velora Got a Campaign Extension

In a recent forum thread, Laita Labs updated the Velora community on $VLR, the Road to Velora campaign, and the most viable next steps for capitalizing on momentum-based growth. Largely, the Road to Velora campaign has been successful; it achieved its main goal of staker activation. sePSP2 experienced a weekly growth of 36%, double the rate of the average Velora volume growth. Since the start of the campaign, the volume generated by the listed tokens increased by 500% (a PSP trading volume growth by sePSP2 stakers of over 725%).

Timing is extremely important for token migration. It requires a mixture of strong market conditions, the potential for momentum, and overall community readiness. Laita Labs accordingly announced that VLR’s migration would be moved to a moment where those simultaneous conditions could be met, maximizing the chances of a successful launch.

So, what’s next? Here, we look at three main opportunities for Velora’s next phase.

Three strategic opportunities

The transition from ParaSwap to Velora presents a unique opportunity to reward long-term commitment and create sustainable value accrual mechanisms. The Road to Velora campaign serves as the foundation for this transformation, and below we lay out three opportunities to take this a step further. This analysis examines how each opportunity category addresses different aspects of protocol sustainability and user engagement, positioning Velora to compete effectively in an increasingly sophisticated DeFi landscape.

(1) New ways to earn rewards can reshape traditional incentive structures

The reward mechanisms emerging through Velora's transition deviate from standard approaches in the past. The Road to Velora campaign is a multi-layered reward system that prioritizes sustained engagement over simple (non-sticky) capital deployment. Users can earn through PSP staking, daily quest completion, referral programs, and competitive leaderboards, each designed to encourage different types of valuable behavior.

What makes this approach compelling is the integration of multiple reward vectors. Unlike protocols that rely solely on trading volume or liquidity provision, Velora's system recognizes diverse forms of value creation. The badge-based reward system creates achievement tiers that acknowledge both small and large contributors, while the weekly point reset mechanism maintains competitive dynamics over extended periods.

The technical implementation includes gas-free, one-click swap tools available for cross-chain migration on Base, removing traditional barriers to participation. The 1:1 PSP-to-VLR migration ratio with 10% of supply dedicated to migration incentives provides substantial runway for rewarding early adopters. Perhaps most importantly, these reward structures lay the groundwork for sustainable tokenomics. Rather than relying purely on token inflation, the system creates pathways for users to earn through genuine protocol contribution. It’s a model that can scale indefinitely as protocol usage grows.

Going forward, there’s an opportunity to expand Velora’s strategy to further reach users. Future marketing campaigns can target not just sePSP2 stakers, but new users and first-time stakers.

(2) InfoFi campaigns transform attention into tokenized assets

Information Finance (InfoFi) represents one of the more innovative opportunities available to Velora, addressing fundamental challenges in how DeFi protocols identify and reward valuable community contributions. InfoFi campaigns move beyond traditional social media engagement metrics to create sophisticated systems that tokenize attention, data credibility, and influence based on actual impact rather than follower counts or wallet sizes.

The mechanics of successful InfoFi implementations provide insight into Velora's potential approach. Leading platforms like Galxe Starboard have demonstrated how combining onchain metrics (TVL, trading volume, protocol usage) with offchain impact (content quality, social influence, community leadership) creates merit-based ranking systems. These systems reward outcomes rather than effort, using AI-powered algorithms to filter quality contributions and prevent manipulation.

For Velora specifically, InfoFi campaigns could address several strategic objectives all at once. They provide a mechanism to identify and reward high-impact community members who drive adoption through education, content creation, or thought leadership. They also create measurable attribution for community marketing efforts (historically one of the most difficult aspects of DeFi protocol growth to track and optimize).

The economic model is compelling because InfoFi campaigns create network effects. High-quality contributors gain recognition and networking opportunities within the ecosystem, encouraging continued participation. Projects achieve better targeting and higher-quality engagement compared to traditional marketing approaches. The result is sustainable growth flywheels where valuable contributors are incentivized to increase their involvement over time.

Industry validation is strong, with platforms like Kaito AI generating $33M in annualized revenue while distributing $72.3M to contributors through partner campaigns. When properly implemented, these campaigns can be both viable and scalable.

(3) Long term incentives establish sustainable value accrual

The third opportunity category addresses one of DeFi's most persistent challenges: creating token value accrual mechanisms that can operate sustainably over extended periods.

Throughout the years in crypto, we’ve seen both successful campaigns that demonstrate the value of aligning incentives with long-term user engagement, and others that have struggled with short-lived spikes in activity. Users naturally gravitate to systems that will give them the greatest degree of upside. Long-term incentives also serve as governance alignment mechanisms. When voting power is tied to commitment duration, the result is better decision-making by stakeholders who have genuine skin in the game. Curve Finance's model, where 44.77% of tokens are locked for an average of 3.36 years, demonstrates how effective this alignment can be in practice.

With that in mind, it’s critical that Velora designs initiatives that build lasting connections between users and the Velora ecosystem. Velora has a strong product; the challenge lies in avoiding short-term incentive boosts and instead creating long-term value for both the community and the protocol.

One path includes redesigning the tokenomics to reflect the protocol’s increased volume. Likewise, the market may react more positively when a complimentary redesign coincides with the launch of an incentive program. Incentive programs need to be designed to ensure that users stick around after the incentives end. The goal, as always, lies in attracting sticky liquidity and long-term users as opposed to farmers and short-term opportunists. One way to accomplish that is by showcasing Velora’s powerful features and ensuring that competitive incentive programs aren’t attracting more users through higher rates.

Another angle to consider revolves around attribution. When products like Velora offer multiple wallets and points of entry, there exists a tradeoff introduced between ease-of-access and fairly awarding the different marketing touchpoints that contribute to a desired outcome (in this case, using Velora’s product). One way to address this through long-term incentives could be ensuring that users who start a transaction via Velora, but trade through other interfaces, still receive credit for their actions. Retroactive attribution incentive structures could help ensure that users who use various front-ends in crypto have aligned incentives, creating a system of tightly-integrated protocols and user-bases across crypto.

When designing Velora’s future incentive structures, certain metrics could help guide the community’s decision-making. Obtaining (high-quality) data gives us more transparency into the viability of our chosen incentive structures. Some metrics that could be valuable to track in this process include:

1. Comparing trading volume among non-stakers to sePSP2 stakers.

2. Monitoring the rate of new staker growth.

3. Classifying and segmenting the new users’ history and profiles onchain.

4. Tracking the period of participation and the users’ long-term consistency.

5. Parsing the direct impact of marketing efforts (whether it’s on staking activity, user growth, etc).

Wrapping Up

These three opportunity categories position Velora at the intersection of proven DeFi mechanics and emerging crypto-native models. The combination of enhanced reward structures, InfoFi campaign capabilities, and sustainable long-term incentives addresses different aspects of protocol growth: user acquisition, community engagement, and stakeholder retention. Each opportunity type complements the others to create a comprehensive ecosystem rather than isolated features. New reward mechanisms attract users and demonstrate value. InfoFi campaigns identify and cultivate high-impact community members. Long-term incentives ensure valuable participants remain engaged over extended periods. We’re excited to develop these ideas alongside the community in the upcoming months! 🐾

Start trading: velora.xyz

Follow Velora on X (Twitter): @VeloraDEX

Join the Velora Discord: velora.xyz/discord