Velo Protocol (VELO/USDT – trade it here) is a next-generation platform powered by the blockchain that provides financial services. The core mission of Velo is to build a decentralized network which allows users to transfer funds between each other securely and transparently. The underbanked population will then have the privilege of fast transactions with lower fees utilizing its technology and its tokens. In this article, I will talk about everything you need to know about the protocol plus an instruction on how to buy VELO tokens.
The goal of Velo is to connect existing banking infrastructure and fiat money to a wide range of partners using a blockchain payment system. This also offers trustless settlement, rather than to replace them. By providing a collateral layer to support all transactions, its technology essentially serves as a guarantor for all digital credit transfers in the network. This promotes confidence. The value of the collateral serves as an illustration of the worth of the system. Through the blockchain, The Velo Network links Trusted Partners—companies that have been examined and given the go-ahead to join the network—to one another. The benefits and services of other partner firms that are a member of the Velo Network can thus the end consumers have access to each partner company.
Key Features of Velo
There are two primary components made up the protocol:
- Digital Reserve System. A 1:1 value ratio between issued digital credits and associated fiat currency is maintained through the Digital Reserve System’s automatic rebalancing of the VELO token collateral pools.
- Digital Credit Issuance Mechanism. By staking tokens in collateral pools, the Digital Credit Issuance Mechanism creates digital credits that are tied to any fiat currency. Please see below for methods to obtain VELO tokens.
What is Velo Token?
VELO tokens are utility tokens that work as smart contract locked collateral for value transfers. This is to guarantee the settlement of digital credits issued in the ecosystem. As the demand for digital credits rises and the number of business partners and holders grows, value of the token will rise.
The value of the VELO coin comes from its dual function as collateral and a prerequisite for entry into the Velo Ecosystem. By utilizing the the protocol and VELO tokens, each use of the Velo Ecosystem begins with the deposit of currency and the issue of a corresponding quantity of digital credits.
Why on Stellar?
One of the quickest, least expensive, most effective, and secure blockchains on the market, the project chose Stellar as the technology for the issuance of the VELO token. When comparing the major blockchains, Ethereum can handle 20 transactions per second while Bitcoin can only process 3–4 per second. Due to their enormous network activity, Ethereum and Bitcoin are prohibitively expensive for modest payments. The Stellar blockchain has a 1000 transaction per second throughput, making it particularly ideal for financial applications like payments and remittances.
Cryptocurrencies provide a practical way for considerably faster point-to-point money transfers between entities, when compared to the SWIFT network’s performance. Depending on the platform used, transactions of this kind typically settle in two to three business days, as opposed to instantly with the most advanced blockchain technologies.
How to buy VELO token?
You can buy VELO on MEXC by the following the steps:
- Log in to your MEXC account and click [Trade]. Click on [Spot].
- Search “VELO” using the search bar to see the available trading pairs. Take VELO/USDT as an example.
- Scroll down and go to the [Spot] box. Enter the amount of tokens you want to buy. You can choose from opening a Limit order, a Market order or a Stop-limit order. Take Market order as an example. Click [Buy VELO] to confirm your order. You will find the bought tokens in your Spot Wallet.
Learn More with MEXC Global
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