Velocity Labs: Transforming DeFi with Polkadot Innovation

Velocity Labs & Polkadot Blockchain: Solving Web3’s Biggest Challenges

From Wall Street to Web3: Nicolas Arevalo on Building the Future of DeFi with Velocity Labs

The blockchain world is changing fast, bringing new ideas and technology that are making digital finance better. One of the key figures in this space is Nicolas Arevalo, the CEO and co-founder of Velocity Labs. His company is working within Polkadot to develop tools that help more people access and use Web3.

In a discussion with Mr. Sudeep Saxena, co-founder of CoinGabbar, Nicolas talked about his journey, his views on the crypto market, and the role of Polkadot in the future of decentralized finance (DeFi). He also spoke about the challenges in blockchain and how his team is working on solutions.

Nicolas’ Journey: From Wall Street to Web3

Nicolas always had a passion for finance. Growing up in Colombia, he dreamed of working on Wall Street. After college, he moved to New York and worked in trading. However, he quickly realized that the traditional financial system felt outdated, slow, and controlled by a few large players. He wanted something more open and accessible.

In 2020, during the Bitcoin price surge, he became curious about crypto. At first, he traded a little, but as he learned more, he became fascinated by how blockchain removes middlemen and gives people more control over their money. That’s when he knew this was the future.

His first role in crypto was at Kaiko, a company that provides data to crypto investors. But Nicolas wanted to build something, not just sell data. He joined Acala, the first parachain on Polkadot, and later took on a leadership role at Parity Technologies, Polkadot’s main development company. Now, he leads Velocity Labs, working to make blockchain tools easier to use.

The Birth of Velocity Labs

In November 2023, a big shift happened. Parity Technologies decided to focus only on developing Polkadot’s core system and move business-related tasks to other teams. Since Nicolas was already leading DeFi at Parity, he saw this as the perfect chance to start something new while still contributing to Polkadot. That’s how Velocity Labs was created.

What does Velocity Labs do?

• Helping DeFi projects grow on Polkadot – They guide developers, connect them with resources, and work on infrastructure like bridges, oracles, and stablecoins.

• Building better tools for developers – They identify issues developers face and create solutions to make blockchain easier to use.

Making Token Transfers Easier with Turtle

One big problem in crypto is moving tokens between different blockchains. Many developers on Polkadot struggle to bring in users because transferring tokens isn’t always simple. That’s why Velocity Labs built Turtle.

Turtle is a tool that makes token transfers simple.

• It has a user-friendly app where anyone can transfer tokens between Ethereum and Polkadot.

• It also comes as a software tool (SDK) that developers can add to their apps, making token transfers smoother for users.

Turtle is already helping many projects, and Velocity Labs plans to improve it even further.

How Polkadot is improving its Ecosystem

While discussing Polkadot, Nicolas highlighted how it is evolving and improving to enhance user experience and developer accessibility.

1. Polkadot Simplifies Access for New Developers – It was built as an advanced system, but that also makes it harder for some people to use. To fix this, Polkadot is creating better tools, guides, and educational resources to make it easier for new developers to get started.
   

2. Moving assets between blockchains isn’t always smooth – Even though Polkadot allows different chains to communicate, transferring tokens can still be difficult. Nicolas explained that projects like Turtle are designed to solve this by making cross-chain transactions faster and easier.
   

3. Scalability and transaction speed – Polkadot is working to increase the number of transactions it can handle at once. This will make it faster and more efficient for users and developers.

By making these improvements, Polkadot aims to attract more developers and users.

Polkadot’s Next Big Step: A Step Towards Mass Adoption

So far, businesses and developers have mainly used Polkadot to build blockchain applications. Now, efforts are being made to make it easier for everyday users to access the network.

One major factor driving this change is stablecoins. Unlike Bitcoin and other cryptocurrencies, stablecoins are tied to real-world currencies like the US dollar. This makes them useful for things like daily payments and sending money across borders.

Velocity Labs is helping bring stablecoins to Polkadot by:

• Partnering with exchanges in Argentina, the Philippines, and Africa so people can easily buy stablecoins using their local currency.

• Building technology that makes stablecoin transfers faster and cheaper.

As more people start using stablecoins on Polkadot, it could become an important player in global finance.

The Future of Blockchain and Web3

Nicolas believes that blockchain is at a turning point. In 2020, DeFi introduced many new ideas, but recently, attention has shifted toward meme coins and speculation. Many people join crypto hoping to make quick money, but this does not help build useful technology.

Looking ahead, Nicolas sees real-world blockchain applications growing, such as:

1. Stablecoins and remittances – Making money transfers across borders faster and cheaper.

2. Decentralized social media – Giving users control over their own data instead of big companies.

3. Digital identity solutions – Helping people protect their personal information online.

Focusing on these practical applications will help Web3 grow and gain trust.

Final Thoughts: A Call to Build

For Nicolas, Web3 is not just about technology—it’s about giving people more control over their financial future. This is especially important in countries where traditional banking leaves many people behind.

You don’t need to be a developer to be part of Web3. Here’s how you can contribute:

• Learn about Web3 and share what you know with others.

• Use decentralized apps to support blockchain projects.

• Build projects that solve real problems in your community.

Web3 will only grow if more people use and improve it. When blockchain makes life easier, more people will trust it. Nicolas and his team at Velocity Labs are working hard to make blockchain easier for people to use. They are building tools that help developers and businesses bring real solutions to the market.

Velocity Labs and Polkadot Blockchain are paving the way for a future where blockchain is simple and useful for everyone. Their goal is to create technology that both businesses and everyday users can benefit from, making Web3 more practical and accessible.