What is Velora (Paraswap) ?

The world of decentralized finance is evolving quickly, and some projects are reinventing themselves to stay relevant. That is exactly the case of ParaSwap, a well-known DeFi protocol that changed its name in 2025 to become Velora. This rebranding is more than cosmetic: it marks a deep transformation in how users interact with DeFi.

Velora presents itself as a cross-chain and intent-based interface, designed to provide a smoother, safer, and more efficient experience. Its purpose is to make crypto swaps simpler while protecting users from practices like MEV (Maximal Extractable Value), which can drain value from trades.

But what really changes with Velora compared to ParaSwap? What are its strengths, its risks, and how can Coinstancy complement it by offering a simple and stable savings solution?

From ParaSwap to Velora: the evolution

From a basic aggregator…

Initially, ParaSwap was a DEX aggregator. Its role was simple: compare prices across different decentralized platforms to let users swap at the best rate. Instead of visiting Uniswap, Sushiswap, or Curve separately, ParaSwap automatically calculated the best route.

This service quickly gained traction because it saved time and reduced costs. Yet in a highly competitive market, that alone was not enough to secure long-term growth.

… to an intent-based protocol

With Velora, the model changes. Instead of only aggregating prices, the protocol uses a logic based on user intentions. In practice, the user specifies what they want (for example: swap 1,000 USDC into DAI with 0.3% slippage tolerance), and Velora executes the swap along the most efficient and safest path.

This intent-based architecture helps reduce the risk of front-running (when a bot anticipates your trade to profit from it) and significantly improves the trading experience. Velora thus becomes a more robust protocol, built for the future of DeFi.

The PSP token and the path to VLR

Velora inherits ParaSwap’s PSP token, while also preparing a transition to the VLR Token.

• Utility 🎫: governance voting, protocol upgrades, potential fee reductions, and access to exclusive features.
• Rewards 🎁: incentives for liquidity providers and active users.
• Community value 🤝: the token strengthens engagement and involvement of the community.

As always with DeFi tokens, there is high volatility, and the price of VLR will depend heavily on the protocol’s adoption. For beginners, it can be interesting as diversification, but it remains a risky asset.

Velora’s main strengths

Velora brings several competitive advantages:

• Cross-chain support 🌐: not limited to Ethereum; Velora also supports Polygon, BNB Chain, and other networks, giving access to deeper liquidity.
• MEV protection 🛡️: the intent-based system reduces losses from automated bots.
• Modern interface 📱: cleaner and more intuitive than ParaSwap’s earlier version.
• Complete DeFi experience 🔗: trading, portfolio management, and governance in a single place.

These features make Velora a strong candidate to appeal both to experienced DeFi enthusiasts and newcomers.

Risks and limitations

Innovation always comes with risks. Here are the main ones to keep in mind:

• Volatility of the VLR token 📉: like other governance tokens, its value can swing dramatically.
• Liquidity risk 💧: some tokens with low volume remain hard to swap even with aggregation.
• Technical complexity ⚙️: while intent-based logic simplifies trading, it still requires some understanding to avoid costly mistakes.
• Uncertain adoption ❓: Velora must prove it can attract users against established competitors such as 1inch or Matcha.

Coinstancy: stability that complements Velora

While Velora focuses on optimized trades, Coinstancy fills another key role: providing stable and simple savings.

• Stablecoin savings pools 💶: annual yields around 7%, accrued continuously.
• Institutional-grade security 🔒: assets safeguarded by Fireblocks, trusted by leading financial institutions.
• Ease of use 🤗: unlike many DeFi protocols, Coinstancy is designed for beginners with a straightforward interface.
• Diversification 📊: combine Velora’s swap flexibility with Coinstancy’s stable yields for a balanced strategy.

A practical example

Let’s say a user swaps 1,000 USDT into DAI using Velora:

1. They receive DAI directly in their wallet, with the optimal route chosen automatically.
2. Instead of leaving these funds idle, they send them to Coinstancy.
3. The funds are placed into a stablecoin pool generating about 7% annually.

👉 The outcome: Velora ensures the best possible swap, and Coinstancy converts it into passive income.

Conclusion

Velora, formerly ParaSwap, represents more than a rebranding. It’s an evolution toward a smarter, safer, and more user-friendly DeFi. With its intent-based system and MEV protection, Velora is preparing for the future of decentralized trading.

Yet, like all crypto projects, risks remain. The smart strategy is to balance those risks by pairing Velora with a stable solution like Coinstancy.

💡 With Velora, you optimize swaps. With Coinstancy, you grow your gains. Together, they create a powerful combination for modern investors.

Frequently asked 🤔

What is Velora and why did ParaSwap change its name?

Velora is the new name of ParaSwap since 2025. The protocol chose to rebrand to highlight a major evolution: moving from a simple DEX aggregator to a cross-chain, intent-based platform. The goal is to simplify user experience while making transactions safer and more efficient. The new name also reflects a desire to broaden the brand, attract new users, and modernize its image. 🌐

Does the PSP token still exist, or is it being replaced?

Yes, the PSP token still exists, but it is in the process of being transitioned into the Velora Token (VLR). This new token retains the roles of PSP: governance participation, incentives for active users, and in some cases fee reductions. Holders of PSP are expected to migrate to VLR in order to continue enjoying benefits. Like any governance token, its value may fluctuate depending on adoption. 💰

What are the practical advantages of using Velora instead of going directly to a DEX?

Velora works as an intelligent aggregator. Instead of manually comparing rates on Uniswap, Curve, Sushiswap, or others, Velora automatically finds the optimal path for your trade. In addition, thanks to its intent-based architecture, it reduces risks tied to MEV (bot front-running). That means you save time, reduce fees, and secure your swap execution. ⚡

What are the risks of using Velora?

Like any DeFi protocol, Velora comes with risks. The most obvious one is the volatility of the VLR token, which depends on user confidence and platform activity. There’s also a liquidity risk: some low-volume tokens may remain hard to swap even through an aggregator. Finally, even if the interface is simpler, DeFi is still a field where mistakes can be costly. It’s recommended to learn step by step and start with small amounts. ⚠️

How does Coinstancy complement the use of Velora?

Velora is excellent for trading your crypto at the best rate, but it does not offer stable yields on stablecoins. That’s where Coinstancy steps in: after using Velora to make a swap, you can send your stablecoins to Coinstancy and place them in a savings pool. The result: you keep Velora’s flexibility while generating about 7% per year with Coinstancy, secured with institutional-grade protection via Fireblocks. A winning combination of innovation and stability. 💡