The introduction of veNFT in Velodrome optimism ecosystem has reshaped the traditional DeFi governance structure. By transforming the governance token veVELO into a tradeable non-fungible token (NFT), veNFT offers an unprecedented level of flexibility and utility to users.

One of the most notable benefits of the veNFT model is the ability to sell or trade the governance power encapsulated within these tokens. This functionality provides users with an alternative exit strategy, enabling them to unlock their capital without waiting for the lock-up period to end.

Moreover, veNFT can also be used as collateral in various liquidity pools. This brings an additional layer of capital efficiency, as it allows users to maximize the value of their locked tokens. The introduction of veNFT has indeed taken Velodrome V2’s governance and token utilization to new heights.