⚙️ TECHNICAL CONCEPTS
veNFT (veNFT (Vote-Escrowed NFT))
Definition
A veNFT is an NFT that represents a vote-escrowed token position. Unlike traditional veTokens (which are non-transferable), veNFTs make locked positions tradeable by wrapping them as NFTs. This allows users to exit locked positions on secondary markets and enables new infrastructure like veNFT lending, splitting, and merging.
Example
Example
On Velodrome, locking VELO creates a veVELO NFT. This NFT can be traded on secondary markets, letting buyers acquire voting power without waiting through the lock period.
Risks to Consider
Risks
- veNFT price discount vs underlying
- Smart contract risk
- Liquidity risk on secondary markets
Common Questions
Why wrap veTokens as NFTs?
Traditional veTokens are locked and non-transferable, which creates capital inefficiency. veNFTs solve this by making positions tradeable, composable, and usable as collateral — while preserving the voting and earning mechanics.
