What is Velo's Nova?

Key Features

• EVM-Compatible: Nova supports smart contracts, enabling DeFi operations and seamless integration with platforms like Velo’s Universe Hybrid DEX1.
• Low/No-Cost Transactions: Nova addresses the cost barrier often seen with chains like BSC by eliminating monetary-value gas fees. Instead, it uses a secondary token called NOVA, which is used exclusively for on-chain gas. Notably, NOVA has no monetary value and is typically distributed to users via faucets21.
• Cross-Chain Integration: Nova interacts with other blockchains such as Stellar, BNB Chain, and more through Velo’s Warp bridging technology, allowing efficient asset transfers and inter-chain smart contract execution21.
• Core Role in Velo Products: Nova supports internal operations of Universe DEX and other Velo products until assets are withdrawn (at which point BSC connections are used)1.
• Network Trends: Nova has shown varying levels of adoption — active address counts have fluctuated, but transaction volume has seen significant growth, particularly in late 20241.

Ecosystem Context

• Infrastructure: Velo initially used Stellar for its high speed and low fees, but added Nova (and BSC) to overcome the lack of smart contract capabilities and to enable DeFi applications2.
• Gas Token (NOVA): Used only for network transaction fees within Nova, with no trading or monetary function — a unique approach to keep user costs minimal21.
• Interoperability: Nova is key to Velo’s multichain ambitions, acting as both operational backbone and bridge facilitator2.

In Summary