[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Kebmo [@Kebmojonz](/creator/twitter/Kebmojonz) on x 1291 followers Created: 2025-07-18 10:37:43 UTC Cred: @castifao_kh @CryptoAI Castifao on X…breaks down HOW THE VELO PROTOCOL SYSTEM WORKS!!!!! Read slowly.. and then READ the comments. It can be a challenge to follow along. It was for me. But don’t give up!!!! Commenter- @CryptoAI summarizes the collateral system of the Velo Protocol more broadly. Overview: It’s vital to understand how the Velo Protocol works to maintain the value of the USDv Stable Coin it mints and issues- as a new and novel, digital currency into the financial system. This is super important especially with the Genius Act being signed into law TODAY! Here we go: Essentially for every 1$ value of USDv it mints and issues, they buy and HOLD $XXXX in an investment (bond) vehicle such as the BUIDL 2yr US Treasury, PLUS HOLD $XXXX in value, their own token- Velo, PLUS another $.50 in another stable liquid yield bearing asset. One USDv is backed as follows: 1USDv =($1.00 : $1.50: $.05) Wherein: $XXXX represents 1ea US Treasury Bond held in reserve as backing. Wherein: $XXXX represents $XXXX of VELO held in their (DSR) or Digital Reserve System, as backing/collateral. This is the important part for holders of Velo! And understand that the Current Market Value of Velo WILL fluctuate- and hopefully soar in value. Lastly, Wherein: $.05 represents yet, another $.05 consisting of Sovereign Bonds, Cash or equivalent- held in reserve. Quick Recap: For every X USDv they mint they hold 2x in their DRS system. Does this make you bullish on Velo -like it does me???? As the VALUE of Velo fluctuates, it either acquires more as collateral, or sells it off. Duh!!! I think I’m understanding how it works.. finally! Am I the only person out here that’s been grappling with understanding this? NFAdvice, but I’m buying the snot out of Velo!!!! You do you! See you in the Winners Circle- if you catch what’s happening…🧙🏼♀️ XXX engagements  **Related Topics** [market cap](/topic/market-cap) [$usd](/topic/$usd) [money](/topic/money) [united states dollar](/topic/united-states-dollar) [protocol](/topic/protocol) [$usdv](/topic/$usdv) [coins stablecoin](/topic/coins-stablecoin) [coins arbitrum](/topic/coins-arbitrum) [Post Link](https://x.com/Kebmojonz/status/1946157428610838791)
[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]
Kebmo @Kebmojonz on x 1291 followers
Created: 2025-07-18 10:37:43 UTC
Cred: @castifao_kh @CryptoAI
Castifao on X…breaks down HOW THE VELO PROTOCOL SYSTEM WORKS!!!!!
Read slowly.. and then READ the comments.
It can be a challenge to follow along. It was for me. But don’t give up!!!!
Commenter- @CryptoAI summarizes the collateral system of the Velo Protocol more broadly.
Overview: It’s vital to understand how the Velo Protocol works to maintain the value of the USDv Stable Coin it mints and issues- as a new and novel, digital currency into the financial system. This is super important especially with the Genius Act being signed into law TODAY!
Here we go: Essentially for every 1$ value of USDv it mints and issues, they buy and HOLD $XXXX in an investment (bond) vehicle such as the BUIDL 2yr US Treasury, PLUS HOLD $XXXX in value, their own token- Velo, PLUS another $.50 in another stable liquid yield bearing asset.
One USDv is backed as follows:
1USDv =($1.00 : $1.50: $.05)
Wherein: $XXXX represents 1ea US Treasury Bond held in reserve as backing.
Wherein: $XXXX represents $XXXX of VELO held in their (DSR) or Digital Reserve System, as backing/collateral.
This is the important part for holders of Velo!
And understand that the Current Market Value of Velo WILL fluctuate- and hopefully soar in value.
Lastly, Wherein: $.05 represents yet, another $.05 consisting of Sovereign Bonds, Cash or equivalent- held in reserve.
Quick Recap: For every X USDv they mint they hold 2x in their DRS system.
Does this make you bullish on Velo -like it does me????
As the VALUE of Velo fluctuates, it either acquires more as collateral, or sells it off.
Duh!!!
I think I’m understanding how it works.. finally!
Am I the only person out here that’s been grappling with understanding this?
NFAdvice, but I’m buying the snot out of Velo!!!!
You do you!
See you in the Winners Circle- if you catch what’s happening…🧙🏼♀️
XXX engagements
Related Topics market cap $usd money united states dollar protocol $usdv coins stablecoin coins arbitrum