Product analysis

Velodrome cover,
coverage and gaps.

Cover for the Optimism DEX Velodrome: pays on a contract hack, not for impermanent loss; in 2022 a team member drained a team wallet (user funds were untouched).

Raccoon Score 64/100 Limited

Who this is for: Liquidity providers on Velodrome (Optimism)

Verdict

Velodrome has run since June 2022 with no contract exploit of user funds, has Spearbit audits and an Immunefi bounty, and is the more battle-tested member of the ve(3,3) pair with Aerodrome. Its 2022 insider incident (a team member drained a team wallet, user funds untouched and returned) is a trust flag but not a contract failure, and notably it is exactly the kind of loss a protocol cover does not pay. The limits are the family ones: a fork lineage that clause 9.4 reaches into (Solidly, plus Uniswap v3 via Slipstream), everything on a single OP-Stack L2 (Optimism), impermanent loss excluded and the oracle and liquidation covered events barely applicable. VELO is not a peg, so there is no depeg gap.

Confidence: medium 6 red flags As of 2026-07-14

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Coverage check & real-risk fit
Coverage gap map
Claims process & payout history
Live on-chain data & capital
Loss simulator (stress test)
Premium cross-check
Red flags & open questions
Full Raccoon Score (7 categories)
Methodology & sources

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Velodrome cover,coverage and gaps.

Full report locked

Velodrome cover,
coverage and gaps.