Velo

Velo (VELO) is a cryptocurrency designed to revolutionize cross-border transactions and bring financial inclusivity to underserved communities in Southeast Asia. The project aims to create the largest payment network in the region, tackling issues with remittance and cross-border payments. Velo is backed by prominent investors, including Chatchaval Jiaravanon, a member of one of Thailand's richest families and owner of Fortune Magazine.

The Velo Protocol is a comprehensive financial ecosystem that leverages blockchain technology to enable seamless, secure, and efficient transactions. It features a digital credit issuance mechanism, where trusted partners can obtain digital credits by depositing VELO tokens as collateral. These digital credits are tied to real-world fiat deposits and are backed by VELO token collateral, ensuring secure and trustless settlement throughout the network.

Velo also includes a decentralized crypto exchange (DEX) that facilitates the trading of VELO tokens, digital credits, and other digital assets. This exchange features a robust order book, allowing vetted participants to provide liquidity and contribute to the overall stability of the market. Additionally, Velo envisions a decentralized lending platform that enables peer-to-peer lending among businesses, utilizing digital credits as a medium of exchange.

The development of the Velo Protocol is divided into four distinct phases, each focusing on the implementation and enhancement of specific features and services within the ecosystem. The project aims to establish a global network of digital banks, regulated cryptocurrency brokers, and exchanges to facilitate seamless integration with the traditional financial system.

In terms of its market performance, Velo's token price has experienced significant fluctuations. As of May 28, 2024, the token was trading at $0.01635, far from its all-time high. The circulating supply of VELO tokens is approximately 24.6% of the maximum supply, with the top 10 holders owning 94% of the supply.

The crypto Velo (VELO) is a utility token designed to facilitate cross-border transactions and ensure stable settlement within the Velo ecosystem. Here's how it works:

The Velo ecosystem is built on the Stellar blockchain network, which is an open-source distributed ledger used specifically for payments. The ecosystem includes various components such as Quantum, Universe, Nova Chain, Orbit, and Warp, all designed to provide a seamless and efficient financial infrastructure for users.

The VELO token is the fundamental building block of the Velo ecosystem. It is used by Trusted Partners as collateral for receiving Velo Stablecoins and represents a value link between fiat deposits and stablecoins. The token's utility lies in its double feature as both collateral and an entrance requirement to the Velo Ecosystem.

Velo issues various stablecoins, known as Velo Digital Credits, which are pegged 1:1 to any local currency and backed by a basket of assets that includes cash/cash equivalents and Velo Tokens. These stablecoins are over-collateralized, meaning that the value of the assets backing them is greater than the value of the stablecoin itself. This ensures that the stablecoin maintains its peg to the fiat currency.

The process of creating and maintaining the value of Velo Stablecoins involves several steps:

1. Creation: Velo Stablecoins are created by an Issuer (a Trusted Partner) by locking VELO Tokens into a smart contract.
2. Usage: The Issuer exchanges the Velo Stablecoins for cash/cash equivalents.
3. Collateralization: The cash/cash equivalents received by the issuer are used as the primary collateral, while VELO Tokens are used as the secondary collateral.

• Trustless: The Velo ecosystem is designed to be trustless, meaning that users do not need to rely on intermediaries like banks or brokers for transactions.
• Formless: Assets in the Velo ecosystem can be fractionalized and traded against their real-world value, allowing for greater flexibility and accessibility.
• Borderless: The ecosystem enables the borderless transfer of currency and assets, making it possible for users to transfer, invest, borrow, or lend funds across the globe.

• Blockchain: The VELO token is issued on the Stellar blockchain network, which is an open-source distributed ledger used specifically for payments.
• Supply: The maximum supply of VELO tokens is 30 billion, with a circulating supply of approximately 7.39 billion as of May 28, 2024.

Overall, the Velo ecosystem is designed to provide a robust and efficient financial infrastructure for cross-border transactions, leveraging the VELO token as a key component to ensure stable settlement and facilitate the use of Velo Stablecoins.

The token Velo (VELO) has several strengths that contribute to its utility and potential value within the Velo ecosystem:

1. Double Feature: VELO tokens serve as both collateral and an entrance requirement to the Velo ecosystem, ensuring stable settlement and facilitating value transfer.

2. Collateral for Stablecoins: VELO tokens are used by Trusted Partners as collateral for receiving Velo Stablecoins, which are pegged 1:1 to local currencies and backed by a basket of assets including cash and VELO tokens.

3. Utility in the Ecosystem: VELO tokens are used for various functions within the ecosystem, including transaction fees and collateral for smart contracts.

4. Decentralized and Trustless: The Velo network operates on a trustless, formless, borderless, and limitless framework, allowing for automated, peer-to-peer transactions that are faster, cheaper, and more accessible.

5. Web3+ Ecosystem: Velo's ecosystem integrates traditional finance networks with Web3+ technology, providing a seamless and regulator-friendly environment for financial transactions.

6. Interoperability: The ecosystem includes various components such as Quantum, Universe, Nova Chain, Orbit, and Warp, which enable the transfer of assets across different blockchain networks and facilitate high-frequency trading.

7. Security: Velo's stablecoins are over-collateralized, ensuring that they are backed by more than their face value, which adds an extra layer of security and stability.

These strengths position VELO as a key component in the Velo ecosystem, supporting the transfer of value and ensuring the stability of the network.

Velo (VELO) carries several financial risks that investors should be aware of. These risks are primarily related to the execution of corporate activity and strategy, which includes accounting and financial operations, debt and financing, and corporate growth. Specifically, these risks involve accounting losses, the value of intangible assets, financial reporting, estimates, and company profitability, as well as debt management and financing strategies.

• Mike Kennedy: CEO of Velo Labs, previously CEO of Interstellar, which merged with Velo Labs in a nine-figure deal.
• James Wu: CTO of Velo Labs, previously CTO of Interstellar.
• Chatchaval Jiaravanon: Chairman of Velo Labs, owner of Fortune Magazine, and a member of the Thai billionaire Chearavanont family that controls Charoen Pokphand Group.
• Jed McCaleb: Co-founder of the Stellar Development Foundation and an advisor to Velo Labs.
• Prof. David Mazières: Professor of Computer Science at Stanford and Chief Scientist at Velo Labs.