Starting 20th January, Velar introduces an updated farming program structured to strengthen liquidity depth and reward active ecosystem participants. The new framework optimizes reward distribution across key trading pairs while introducing volume-based incentives.

Program Overview

The farming program implements a dual-reward mechanism: base rewards ensuring stable liquidity provision, and volume-based bonuses encouraging active trading. Participants maintaining a 3-day average trading volume above $25,000 qualify for additional rewards, creating a balanced incentive structure that supports both consistent liquidity and regular market activity.

Detailed Reward Structure

TVL-Based Rewards

The program prioritizes deep liquidity across major pairs through a three-tier system:

Pool rankings are determined based on 3-day average TVL calculations to ensure consistent liquidity performance.

Tier 1 pools receive a 5,000 $VELAR base allocation with potential for 2,000 $VELAR additional rewards through volume bonuses. Tier 2 follows with 3,000 $VELAR base and 1,500 $VELAR bonus potential, while Tier 3 maintains 2,000 $VELAR base with 1,000 $VELAR in possible volume rewards.

Important: If a pool qualifies for multiple tiers (e.g., a meme token qualifying for Tier 1 TVL), it will receive rewards from the higher tier. For example, a meme token meeting Tier 1 TVL criteria will receive Tier 1 TVL rewards instead of meme token tier rewards.

Meme Token Incentives

Supporting the growing meme token ecosystem, the structure allocates:

• First tier: 1,000 $VELAR base rewards plus 1,000 $VELAR in volume bonus potential

• Second tier: 1,000 $VELAR base rewards plus 1,000 $VELAR in volume bonus potential

• Third tier: 1,000 $VELAR base rewards plus 1,000 $VELAR in volume bonus potential

Velar Trading Pairs

Essential Velar trading pairs maintain strong base allocations:

• Velar <> STX pair: 5,000 $VELAR base rewards

• Velar <> aeUSDC pair: 5,000 $VELAR base rewards

Volume Bonus Qualification

The volume bonus structure rewards consistent trading activity. Users qualify by:

1. Maintaining a minimum 3-day average trading volume of $25,000

2. Providing liquidity in eligible pools

3. Keeping positions active throughout the farming period

Impact and Benefits

This updated structure delivers several key improvements for the ecosystem:

1. Total base rewards of 23,000 $VELAR ensure stable liquidity foundation

2. Additional volume-based rewards up to 7,500 $VELAR incentivize active participation

3. Balanced distribution supports both major and emerging trading pairs

4. Volume requirements promote sustainable trading activity

Getting Started

New to Velar or need a refresher? Our comprehensive guide walks you through everything you need to know about trading and providing liquidity on Velar DEX. The guide covers wallet setup, pool selection, position management, and how to track your farming rewards.

Visit our Comprehensive Guide to Velar DEX to get started. Our step-by-step instructions will help you begin participating in the farming program efficiently and securely.

Stay connected with Velar's community channels for technical guidance and program updates.