Velo is a set of smart contracts which are used to issue digital credit on an extension of the Stellar network called EvryNet that supports smart contract functionality. The VELO token is issued on the Stellar blockchain network, which is used for VELO token's transaction settlement and clearance. VELO tokens and the digital credits are ordinary Stellar assets, subjected to all the rules and semantics of all Stellar assets. Stellar provides a solid foundation for maintaining a robust ledger of account balances. However, Stellar does not support the complex smart contract semantics necessary to build the entire Velo Protocol on top of it, hence, the smart contracts can be built using any smart contract platform such as Ethereum, Tendermint, or Evrynet - an intelligent financial service platform.
Velo Protocol will utilize a cross-chain protocol called ‘Warp’, co-developed with Evrynet, to provide a bridge between two different blockchains, Stellar Blockchain, designed for real-time, reliable digital assets movement and a Smart Contract Chain, which provides the ability to deploy and execute smart contracts in order to build the Digital Reserve System.
Velo aims to create a decentralized settlement network that allows partners to transfer value safely and securely between each other in a timely and transparent way. It uses Stellar to increase liquidity and transaction volume, and it has a robust feature set that enables Trusted Partners to interact effortlessly with each other and offer services across physical and digital barriers.
The VELO token acts as collateral to ensure settlement, representing the value of digital credits and fiat deposits in the network. Velo will build real world use cases for the VELO tokens and digital credits. Through its network of partners Velo has the physical and digital reach to improve the lives of millions of underbanked and underserviced people by providing fast, affordable financial services, powered by innovative technology, connecting nontraditional and traditional financial institutions together into a seamless web. In the end, Velo seeks to create a global decentralized settlement value transfer system that can be used as the backbone of a new paradigm for delivering financial services to the world.