In a bold leap into the future of decentralized finance, ParaSwap, a popular DeFi platform, has rebranded to Velora as of September 17, 2025, marking a major overhaul of its brand and operations. It’s also rolled out a full token migration, swapping the old PSP token for the new VLR one, making DeFi simpler and more rewarding for everyday users.
This new token offers improved token utility, including real rewards, staking options, and community governance rights — fixing most of the problems that plagued the old PSP token. These changes make it easier and more valuable for users to take part in the platform’s future growth.
While ParaSwap was once celebrated for its role as a leading DEX aggregator — processing over $125 billion in trades since 2019 — the token utility of PSP failed to provide meaningful value or incentives to its holders. The PSP token didn’t offer enough real-world use or benefits to make it valuable. People holding the token didn’t see rewards or reasons to keep it, so its demand and price dropped. The token’s role in the ParaSwap system wasn’t strong enough to tie its success to the platform’s overall growth.
The Velora rebrand is centered on fixing these flaws through the introduction of the VLR token, which delivers a comprehensive upgrade in token utility. Unlike the PSP token, which lacked clear rewards and governance capabilities, the VLR token offers token holders revenue-sharing incentives, governance rights, and staking opportunities. This shift in token utility is designed to better align the interests of the community with the success of the DeFi protocol.
Central to the Velora rebrand is a renewed focus on decentralized governance, empowering holders of the VLR token to have direct influence over the protocol’s future. By embedding governance within the new VLR token framework, Velora ensures that decisions are community-driven and transparent, strengthening trust and engagement.
Token Migration Process Offers Simplified User Experience
The new focus on user satisfaction is evident in the token migration from PSP to VLR, designed to be simple and user-friendly. Holders of the old PSP token can exchange their tokens for new VLR tokens on a 1-to-1 basis starting September 16, with zero transaction fees and early migration incentives. This token migration phase marks a clear break from the past and sets the stage for the next chapter of Velora’s evolution as a leading DeFi protocol.
The migration also accompanies a strategic move to Base, a lower-cost blockchain network, addressing the high Ethereum gas fees that once hindered user adoption and growth of ParaSwap and PSP token.
DeFi Protocols Revamping with Revenue Model
The launch of the VLR token also completes Project Miró, a DAO (Decentralized Autonomous Organization) initiative aiming to overhaul the Velora rebrand in governance, branding, and token utility for long-term sustainability. This community-driven overhaul is a response to critiques of ParaSwap’s past reliance on centralized control mechanisms, which were at odds with DeFi principles.
The Velora rebrand signifies a broader industry shift away from speculative and disconnected token structures — like those typified by the PSP token — toward sustainable, revenue-sharing token utility embodied by the VLR token.
With this token migration and renewed governance structure, Velora positions itself at the forefront of DeFi innovation. The platform’s future is now in the hands of the VLR token holders, empowered through DAO governance to shape a transparent and resilient ecosystem.
