ParaSwap to end PSP utility as Velora rebrand shifts governance to VLR token

Velora, the cross-chain trading protocol formerly known as ParaSwap, has launched its new VLR token to replace PSP — designed to consolidate its model into a single asset and better align incentives with real protocol usage.

The VLR launch marks the immediate end of PSP's utility across governance, staking, and rewards. Instead, Velora is shifting to a more simplified structure with no gas fees, a unified staking hub on Base, and rewards tied directly to protocol revenue rather than inflationary incentives.

"Velora is entering a new era," Velora founder Mounir Benchemled said in a statement. "This token launch is more than a technical upgrade; it's about removing barriers, aligning our incentives with the community, and setting governance standards with transparency. With VLR, we're building a protocol that’s designed to last, one that strengthens Ethereum's roadmap and demonstrates how DeFi can evolve into sustainable financial infrastructure."

"PSP will still remain transferable and usable, but it will no longer be officially supported," the team explained to The Block. PSP can be migrated 1:1 into VLR starting Sept. 16, with a one-click, gasless upgrade to Base, and will remain open for at least one year. Holders of PSP, sePSP1, and sePSP2 must migrate to access governance, staking, and rewards. "Early migration (by Dec. 16) brings bonus VLR rewards with no vesting," the team added.

VLR's launch closes out Project Miró, a DAO-led initiative to overhaul Velora's branding, governance, and token model for long-term protocol health.

Velora has been a fixture in onchain execution since 2019. Integrated with DeFi platforms, such as Aave, Morpho, and Pendle, Velora claims to have processed over $125 billion in cumulative trading volume, attracting an all-time high monthly volume of more than $7 billion in August.