Aerodrome Finance | Trading Non Stop

What is AERO?

Aerodrome Finance (AERO) is a decentralized exchange and liquidity hub built on Coinbase’s Base network. It’s designed to make token trading easier, reward users who provide liquidity, and let the community help govern the platform.

Base’s Liquidity Engine – Serves as the main decentralized exchange (DEX) for the Base network, offering smooth trading and strong liquidity.
Incentive-Driven Model – Rewards liquidity providers with $AERO tokens and shares 100% of protocol fees with those involved in governance.
Vote-Lock Governance – Uses a special veAERO NFT system for voting, encouraging long-term commitment from users.

Deep Dive

1. Core Functionality

Aerodrome acts as the main marketplace for liquidity on Base. It combines an automated market maker (AMM) with focused liquidity pools, allowing users to swap tokens with low fees. Protocols can also add liquidity by staking assets and earning $AERO rewards. Since Base is a Layer 2 blockchain designed for faster and cheaper transactions, Aerodrome benefits from Coinbase’s large user base, including millions of users on the Coinbase app (Aerodrome Docs).

2. Dual-Token Governance

Aerodrome uses two tokens to manage rewards and governance:

$AERO: Given to users who provide liquidity as a reward.
veAERO: Created by locking $AERO tokens (for up to 4 years) as NFTs, which gives holders voting power on how rewards and fees are distributed.

Locking $AERO increases your voting influence, and veAERO holders get 100% of the weekly trading fees. This setup discourages quick speculation and encourages users to stay invested in the platform’s long-term success.

3. Strategic Positioning

Aerodrome stands out because it’s closely tied to Base’s growth. For example, Coinbase’s planned DEX integration in August 2025 will make Aerodrome the default platform for trading Base-native assets, instantly giving it access to over 100 million users. This connection makes Aerodrome a key liquidity provider and a launchpad for new projects on Base (Grayscale Rebalancing News).

Conclusion

Aerodrome Finance is a specialized liquidity platform for Base, combining decentralized finance incentives, innovative governance, and strong infrastructure. Its future success depends on how well Base grows and whether Aerodrome can stay ahead as more competitors enter the Layer 2 DEX space.