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Your units may become Veterans by dealing damage in Raids. With enough Veteran Experience, they gain Veteran levels, increasing their Health and Damage in battle.
A small icon will appear above units that become Veterans. Once a Veteran, these units will live in your Veterans Lodgings. Space in the Veteran Lodging is limited, so if you want to hold multiple Veterans in your base, this structure will need to be upgraded.

Each Veterans has a certain amount of lives (increases when leveled up), and if used recklessly, it can result in losing the Veteran Unit.

Veterans can be used to support your troops in attacks against other players, and unit caps do not apply to your Veterans during Raids.
When left in your base, Veterans can help protect you from attacks and even recover some of the loot stolen by the enemy, safeguarding a portion your supplies.