ParaSwap, a decentralized exchange (DEX) aggregator, announced today that it has rebranded to Velora.
In addition, Velora has also launched Delta v2.5, an upgrade designed to make the platform faster and more flexible when it comes to executing trades.
Over the last month, ParaSwap (now Velora) had 18,000 active users. The platform also saw 4.3 million smart contract interactions over the past year, according to TokenTerminal.
Velora has been utilizing intent-based trading since mid-2024, and this has mitigated some of the issues of MEV bots or Maximum Extractable Value bots, which can manipulate the timing of trades to make a profit at the expense of regular users.
In the past, ParaSwap handled orders in three steps: first, the trade price was set, then the order was sent to an auction to find the best way to execute it, and finally, the trade was completed in the best way possible.
The aim is to limit the negative impact of MEV exploitation on individual traders. These MEV bots use tricks to make money by jumping in front of others or exploiting price differences, which makes trading unfair.
MEV bots have been a huge issue in DeFi, taking advantage of transactions to make a profit. Velora’s new system tries to stop this by making the trading process fairer and more efficient. “The presence of MEV impacts not only individual transactions but also the overall fairness, accessibility, and decentralization of the DeFi ecosystem,” said Mounir Benchemled, founder of Velora
Just two weeks ago, the ParaSwap DAO voted on whether to return around $100,000 in fees collected from swaps linked to the $1.5 billion Bybit hack. The vote was the closest in ParaSwap’s history, with 49.56% voting yes and 49.54% voting no. Eventually, they decided to return the funds, but the debate sparked controversy.
Sergej Kunz, who is the co-founder of another DEX platform called 1inch, stated that users need not worry about the more complicated aspects of decentralized finance.
Kunz stated that intent-based systems take care of the hard parts by allowing professionals to protect users from MEV bots. With these intent-based systems, traders can concentrate more on their trades and have to think less about the technicalities of their trade execution.
Also Read: Crypto Execs Urge Congress to Allow Interest on Stablecoins
