Overview
Velar is a decentralized trading protocol on Stacks that combines spot trading with perpetual futures, enabling advanced trading strategies on Bitcoin Layer 2. With both AMM-based spot trading and leveraged perpetual positions, Velar serves sophisticated traders in the Bitcoin DeFi ecosystem.APY
11.3% annual percentage yield
TVL
$431K total value locked
Assets
sBTC/STX trading pairs
Risk Level
Medium risk rating
Protocol Type
DEX (Decentralized Exchange) — Velar offers both spot trading and perpetual futures on Bitcoin Layer 2.Key Features
Perpetual Futures Trading
Access leveraged perpetual contracts for sBTC, STX, and other assets — a rarity in Bitcoin DeFi.Spot Trading AMM
Trade spot assets through automated market maker pools with competitive rates.Liquidity Provision
Provide liquidity to trading pools and earn 11.3% APY through trading fees and protocol rewards.Bitcoin L2 Native
Built specifically for Stacks, bringing advanced trading primitives to the Bitcoin ecosystem.Advanced Trading Tools
Access features typically found on centralized exchanges, but in a fully decentralized environment.Supported Assets
- sBTC — Stacks-wrapped Bitcoin
- STX — Stacks native token
- sBTC/STX pairs — Primary trading focus
- Additional Stacks tokens — Various ecosystem assets
How to Use Velar via Staxiq
Choose Trading Mode
Select between spot trading or liquidity provision (perpetuals may require direct protocol access)
Risk Assessment
Risk Level: Medium
Velar is rated Medium Risk due to:- Perpetuals complexity — Leveraged trading increases risk profile
- Lower TVL — $431K indicates newer or smaller protocol
- Smart contract risk — Advanced trading features add complexity
- Impermanent loss — Liquidity providers exposed to IL
- Market volatility — Perpetuals amplify both gains and losses
- Innovation focus — Cutting-edge features may have undiscovered risks
Performance Metrics
| Metric | Value |
|---|---|
| Current APY | 11.3% |
| Total Value Locked | $431K |
| Primary Assets | sBTC/STX |
| Risk Rating | Medium |
| Protocol Type | DEX (Spot + Perps) |
| Trading Features | AMM + Perpetuals |
External Resources
Visit Velar
Access the official Velar platform for full trading functionality including perpetuals
Why Choose Velar?
- Advanced trading — Perpetuals on Bitcoin L2
- Competitive APY — 11.3% for liquidity providers
- Bitcoin-native — Built for Stacks ecosystem
- Innovation — Bringing CEX features to DEX
- Growing platform — Expanding features and liquidity
- Trading flexibility — Spot and derivatives in one place
Use Cases
For Traders
- Access perpetual futures on sBTC and STX
- Execute spot trades with AMM liquidity
- Implement advanced trading strategies
- Hedge Bitcoin exposure with derivatives
For Liquidity Providers
- Earn 11.3% APY on sBTC/STX positions
- Benefit from perpetuals and spot trading volume
- Receive protocol incentives and trading fees
For Advanced Users
- Leverage trading positions
- Arbitrage between spot and perpetual markets
- Provide liquidity for higher-volume pairs
Trading Features
Spot Trading
- AMM-based swaps
- sBTC/STX and other pairs
- Competitive pricing
- Low slippage on active pairs
Perpetual Futures
- Leveraged positions
- Long and short exposure
- No expiration dates
- Funding rate mechanisms
Liquidity Provision
- 11.3% APY on pools
- Trading fee share
- Protocol token rewards
- Flexible entry/exit
Important Considerations
Lower TVL
With $431K TVL, Velar has less liquidity than larger protocols. This may result in:- Higher slippage on larger trades
- Less proven security track record
- Potential smart contract risks
Best Practices
- Start with small positions to test the platform
- Understand perpetuals mechanics before trading
- Monitor positions regularly
- Use risk management tools (stop losses, position sizing)