Aerodrome Finance (AERO), launched in August 2023, is a decentralized exchange (DEX) and automated market maker (AMM) on the Base blockchain, serving as its primary liquidity hub. A fork of Velodrome Finance, Aerodrome combines features from Curve, Convex, and Uniswap V2, offering low-slippage token swaps and a vote-lock governance model. Its native token, AERO, incentivizes liquidity and governance.

Key Features

  • Liquidity Incentive Engine: Redirects 100% of trading fees to veAERO holders, with ~$31.2M in 24-hour volume on Aerodrome (Base).
  • Vote-Lock Governance: AERO holders lock tokens for veAERO to vote on emissions and earn protocol fees.
  • Multi-Chain Potential: Operates on Base, with plans for deeper ecosystem integration via appchains and subaccounts.
  • Ecosystem: Trades on 56+ exchanges (e.g., Coinbase, Kraken) and 118+ markets, with wallet support like MetaMask.

AERO Token

  • Purpose: Used for governance, staking (vote-locking), and earning trading fees.
  • Supply: ~832.6M AERO in circulation, with a maximum supply of 1.66B.
  • Contract Address: On Base, AERO’s contract is 0x940181a94A35A4569E4529A3CDfB74e38FD98631 (addable to MetaMask) CoinGecko CMC.

Who Are the Founders of AERO?

Aerodrome Finance was developed by the team behind Velodrome Finance, re-engineering Andre Cronje’s Solidly DEX for the Base network. No specific founders are named, with governance led by a community DAO and supported by Coinbase’s Base Ecosystem Fund, which holds AERO tokens. Launched without an ICO, AERO emphasizes community allocation.

What Makes AERO Unique?

Aerodrome stands out in Web3:

  • ve(3,3) Model: Combines vote-locking with liquidity incentives, rewarding long-term holders with 100% of fees.
  • Base Ecosystem Hub: Dominates Base’s DeFi with ~50% of TVL, surpassing Coinbase’s exchange volume in top pools.
  • User-Friendly Design: Mobile-optimized swaps and intuitive UI enhance accessibility.
  • No VC Unlocks: Absence of venture capital or team token unlocks ensures stakeholder alignment.

AERO Network Upgrades (2025)

  • AERO Fed (Q1 2025): Enabled veAERO voters to adjust emissions rates, stabilizing monetary policy.
  • ALM V2 and Slipstream V2 (Q2 2025): Optimized passive liquidity and dynamic fees, boosting TVL by 10%.
  • Base Network Speedup (March 2025): Reduced block times to 200ms, enhancing trader UX.

How Is AERO Secured?

Aerodrome and AERO are secured through:

  • Base PoS: Leverages Base’s Proof-of-Stake consensus for transaction security.
  • Smart Contract Audits: Regular audits (auditors undisclosed) ensure protocol integrity.
  • DAO Governance: veAERO holders vote on upgrades, preventing centralized control.
  • Vote-Lock Mechanism: Aligns incentives by rewarding long-term stakers with fees.

Conclusion

Aerodrome Finance (AERO) is Base’s premier DEX, combining advanced AMM technology with a 832.6M circulating supply. Listed on 56+ exchanges, its ve(3,3) model, 2025 upgrades like AERO Fed, and Coinbase-backed ecosystem position it as a DeFi leader. Its robust liquidity and governance model make Aerodrome a key player in Web3.