Velocity Opens Protocol Code, Announces Permanent Futures Beta

Velocity, a Solana-based decentralized exchange platform, has opened its protocol source code and is preparing an open beta centered around perpetual futures. The beta service is expected to be available to all users within days. Velocity was previously known as the Drift Protocol project.

Foresight News reported on April 17 that Velocity completed security audits by OtterSec and has released its protocol source code. The key focus of this overhaul is narrowing the service scope, simplifying the protocol structure, and concentrating on perpetual futures trading while repurposing spot markets for collateral provision and lending features.

Perpetual futures are derivative products that trade without expiration, allowing users to manage positions linked to price movements without holding underlying assets. OtterSec reviewed work done after code branching following a $295 million security incident in April, with 154 items recorded in the audit report and no critical vulnerabilities found. Velocity stated it has already addressed high-risk items identified in deployed code.

Currently, Solana Foundation's STRIDE security review is ongoing. The public beta will launch independently of this review but will be limited to perpetual futures trading with adjusted fee distribution across protocol liquidity, insurance fund, and Velocity Protocol components.