Anyone else experimenting with Liquidity Provision on Velodrome?

Hey folks,

Been diving deep into the Optimism ecosystem lately and Velodrome has really caught my eye. I know Uniswap V3 and Curve have been the go-to for a while, but I'm curious if anyone else is actively providing liquidity on Velodrome and what your experiences have been.

I've been playing around with some of the token pairs, particularly those with decent $VELO emissions. The concept of bribing veVELO holders for increased emissions is pretty fascinating, and it feels like a more dynamic way to earn yield compared to just passive LPing on a static AMM.

My current strategy involves:

• Identifying pairs with good trading volume and reasonable $VELO incentives.
• Providing liquidity in ranges that I anticipate price action within, similar to how I approach Uniswap V3, but with the added layer of potential emission boosts.
• Keeping an eye on the veVELO vote counts to see where the 'smart money' is directing emissions.

I'm still in the early stages, so my APYs are fluctuating, but the potential for higher returns if you can strategically position yourself and anticipate emission flows seems significant. Has anyone else found success with this? What are your go-to pairs or strategies on Velodrome? Are there any hidden pitfalls or advanced tactics I should be aware of?

Would love to hear your thoughts!

I've been experimenting with Velodrome too, and it's definitely an interesting one! The bribing mechanism for $VELO emissions is a clever way to incentivize active governance participation. I've found that focusing on pairs with high bribe volume can yield some really attractive APYs, but it's crucial to keep an eye on impermanent loss, especially with more volatile pairs.

What kind of pairs have you found most successful so far? Are you sticking to stablecoin pairs or venturing into more volatile assets?

Totally agree, the bribing system on Velodrome is a game-changer! I've been focusing on pairs where the underlying tokens have strong fundamentals and a good amount of TVL, even if the immediate APY from emissions isn't the absolute highest. The idea is to capture value from both trading fees and potential long-term appreciation, while hedging against IL as much as possible.

I've seen some decent results with pairs like OP/ETH and USDC/DAI, but I'm always looking for new opportunities. Have you experimented with any newer, less established pairs that have high bribe potential?