Aerodrome Finance | Trading Non Stop

What is AERO?

Aerodrome Finance (AERO) is a decentralized exchange (DEX) and liquidity hub built on Coinbase’s Base network. It’s designed to make token trading smoother, reward people who provide liquidity, and let the community help guide its future.

Central Liquidity Engine: Serves as Base’s main DEX, making trades efficient and pooling liquidity for the whole network.
Vote-Lock Governance: AERO holders lock their tokens to get voting power (called veAERO) and earn fees, encouraging long-term commitment.
Built on Velodrome V2 Tech: Offers low fees, smart liquidity pools that adjust automatically, and flexible rewards for projects.

Deep Dive

1. Purpose & Value

Aerodrome acts as the main source of liquidity on Base, solving the problem of scattered trading activity by bringing it all together. Users can swap tokens easily, and projects can attract liquidity by distributing rewards. All trading fees go back to veAERO holders, creating a cycle where liquidity providers earn rewards and voters help shape the platform’s future.

2. Technology & Tokenomics

Aerodrome is built using Velodrome V2’s technology, which uses an automated market maker (AMM) system with focused liquidity pools. Key features include:

Self-Optimizing Pools: Pools automatically adjust fees and rewards based on how much they’re used.
Locked Positions: Users lock AERO tokens to get veAERO NFTs, which boost their voting power and give them a share of the platform’s revenue.
Emission Steering: Liquidity pools compete each week for AERO token rewards, with veAERO holders deciding who gets what.

The AERO token has a maximum supply of 1.8 billion. More than 150 million tokens are locked through buybacks to reduce how many are in circulation.

3. Role in the Ecosystem

Aerodrome is key to Base’s decentralized finance (DeFi) growth. It supports popular trading pairs like $ETH/$USDC and works with partners like Coinbase and Zora. Its Aero Launch feature makes it easy for new tokens to create liquidity pools. Plus, integrations like Coinbase’s in-app DEX make trading more accessible. The platform generates over $260 million in yearly revenue, showing its strong economic role.

Conclusion

Aerodrome Finance is the core liquidity platform on Base, combining community governance with efficient trading. Its veAERO voting system and close ties to Coinbase’s ecosystem make it an important part of DeFi’s future. The big question: Can Aerodrome’s reward system keep up with Base’s growth?