Velar

2.5M $VELAR tokens bought back and removed from circulation 🔥 The People's Buyback executing exactly as promised. Circ. supply shrinking, protocol growing. This is just month one 📈

Velar PerpDEX Exploit – Community Update At the end of January 2026, Velar PerpDEX liquidity pools on both the Stacks and Mezo ecosystems were exploited through coordinated wallet activity that targeted an edge case in the protocol’s trading mechanics. This activity resulted in unauthorized extraction of funds from affected liquidity pools. Our investigation identified a large cluster of attacker-controlled wallets interacting with the protocol: •Stacks: 240+ wallets involved in coordinated exploit activity •Mezo: 50+ wallets involved in coordinated exploit activity On the Stacks chain, funds were consolidated into a primary wallet before being bridged out, with 29 identified bridge withdrawal transactions related to this matter. These assets were subsequently bridged to Ethereum and further dispersed into mixers. On the Mezo chain, a similar pattern of coordinated wallet activity and cross-chain fund movement was observed by same set of exploiters, with assets ultimately bridged to Ethereum as part of the attacker’s exit flow into same wallets used for stacks exploit. Following the incidents, we initiated a detailed internal investigation across both chains. Through transaction tracing, wallet clustering, and cross-chain monitoring, we have mapped key flows of funds and identified primary consolidation wallets and bridge destinations. We have formally filed a complaint with the FBI’s Internet Crime Complaint Center (IC3) to ensure proper law enforcement visibility, identification of exploiters, evidentiary preservation and funds recovery. We are working closely with the Stacks and Mezo teams, along with blockchain analytics and transaction monitoring partners, including coordination with mixer-related intelligence sources, to trace the movement of funds and identify associated wallets across chains. All relevant transaction data, exploit wallet clusters, and bridge activity have been preserved and are being actively monitored as part of the ongoing investigation. This remains an active situation, and we will continue to share meaningful updates as progress is made.

Notice to users/traders - We are actively working on resolving the issue. Do not interact with the PerpDex until we announce from our official channel that the issue is resolved. Dex is unaffected and working fine.

Velar PerpDEX Incident – Official Technical Update Key points upfront - - This was not a smart contract hack. - All smart contracts are safe. - The issue affected only Velar PerpDEX liquidity pools, not Dex liquidity pools. - Traders are safe and unaffected. - LP funds were compromised. - No open user positions or traders balances were compromised. --- Additional Technical Clarification on the Velar PerpDEX Incident Velar PerpDEX uses the Pyth Oracle on Stacks, which operates on a model where a price update is submitted every time a transaction is initiated. Each submitted price is verified on-chain using a timestamp, and the oracle contract enforces that any new price must have a newer timestamp than the previously submitted price. There was no additional staleness validation beyond this timestamp check in our system. Under normal conditions, where multiple users are actively trading, this mechanism functions as intended because frequent transactions continuously refresh the oracle price. During the incident, user activity on the platform was extremely low. This created an edge case where a single actor was able to interact with the system in isolation. In this scenario, the exploiter was able to: - Receive two oracle prices with different, sequential timestamps. - Predict price movement due to the absence of other transactions refreshing the oracle. - Open a position using a known price. - Close the position using a second known price with a newer timestamp. - Capture a small, deterministic profit. This was not a single event, but a slow, repeated process, executed via small trades across multiple wallets, which made the activity blend into normal pool fluctuations. --- Actions taken - The exploit path has been fully identified. - Additional oracle safety checks are being added to prevent reuse of known prices, especially during low user activity periods. - More detailed analysis will be shared soon. --- Final note This was a design edge case under extremely low user activity conditions. We will be addressing it directly and transparently, and will continue to harden the system as Velar scales.

We are aware of reports of a potential security issue affecting Velar. We have funds deployed on the platform and are actively working with the Velar team to assess the situation and secure our position. We will provide updates as we learn more. x.com/VelarBTC/statu…

More details on it soon. Avoid any communication except from official stacks or Velar account. This isn’t a security bug, our contracts are safe, this is an operational issue, we will be deploying a fix soon.

Hello everyone, kindly avoid trading on Velar perpdex for time being. Due to an oracle price feed issue, some user has started draining our Perpdex LP pools recently, thus we are withdrawing liquidity out of the perpdex pools temporarily. This issue is limited to perpdex only, Velar Dharma dex is working fine. We are coordinating with @Stacks as the foundation have put majority liquidity and they are withdrawing it temporarily as we speak till we resolve it. We have also found a solution and are working to resolve it asap.

Circle choosing @Stacks for their first Bitcoin DeFi move. USDC liquidity coming to the network. The Bitcoin Layer 2 thesis continues to validate.

Trade perpetual futures directly on Bitcoin. Self custody, no compromises. Built on Stacks, secured by Bitcoin.

@godfred_xcuz Revenue can be verified by checking fee bank contract for each pool in perpdex. Similarly, for dex, it can be verified by checking fee contract for new univ2 pools, and core contract for old pools.

The first buy-back of VELAR just happened🔥 🚀 2.5M+ $VELAR buy-back (4150 STX=2,537,312.956270 VELAR) Really great to see this, no matter the amount. ❓@VelarBTC: 1.Where can we verify the monthly revenue from DEX, PerpDEX, Bridge, Launchpad? 2.should we burn the buy-back?

This is what community-first looks like in action. Protocol revenue → Direct buybacks → Reduced supply → Stronger $VELAR Monthly execution continues. The People Buyback delivers 💪

Verify every transaction yourself: 1. explorer.hiro.so/txid/faf53ca4e… 2. explorer.hiro.so/txid/1aa0e03f3… 3. explorer.hiro.so/txid/59dfe943c… 4. explorer.hiro.so/txid/1c2bb3c9e…

🧵 The People's Buyback: First Execution Complete We just completed the first $VELAR buyback worth 4,150 STX from open market. 100% on-chain. 100% transparent. 100% for the community. This is just the beginning 🔥

leverage trading without the 'trust us bro' part. that's Velar PerpDEX

Happy Halloween Velar fam. 🎃 Trade on.

PerpDEX = perpetual futures where you control the keys. really that simple

Velar PerpDex: leverage trading meets Bitcoin security. No middleman taking your funds.

Weekend reminder: you can trade perpetuals without giving up custody now. Trade NOW: perpdex.velar.com

More traders choosing Velar PerpDex for perpetual futures. Why? Native Bitcoin settlement, competitive fees, and no intermediary risk. Building the infrastructure Bitcoin DeFi deserves.