Aerodrome Finance (AERO)

Aerodrome Finance (AERO) is a decentralized exchange and automated market maker built on Base, the Ethereum layer-2 network incubated by Coinbase. Launched as a fork of Velodrome Finance, Aerodrome positions itself as the central liquidity hub of the Base ecosystem, combining design elements from Curve, Convex and Uniswap to let users swap tokens and provide liquidity with reduced slippage and competitive fees.

The protocol solves the recurring DeFi problem of fragmented and mercenary liquidity through a ve(3,3) tokenomics model. Users can lock AERO to receive veAERO, a non-transferable NFT that grants governance voting power over which liquidity pools receive weekly AERO emissions. In exchange for directing emissions, veAERO holders earn 100 percent of the trading fees generated by the pools they vote for, plus any additional bribes offered by projects competing for liquidity, creating an incentive loop meant to align liquidity providers, traders and token holders.

AERO itself functions as both the protocol’s utility and governance token: it is emitted to liquidity providers and voters, can be locked into veAERO for governance rights and fee or bribe revenue, and underpins the trading and incentive mechanics that make Aerodrome one of the largest DEXs by liquidity on Base.