Aerodrome Finance | Trading Non Stop

What is AERO?

Aerodrome Finance (AERO) is a decentralized exchange (DEX) and automated market maker (AMM) built to be the main liquidity hub for Coinbase’s Base network. It offers efficient token trading, rewards for community governance, and a sustainable approach to managing its token supply.

Liquidity Engine: Enables smooth token swaps and rewards those who provide liquidity.
Vote-Lock Governance: veAERO holders guide key decisions and earn a share of fees.
Emission Control: Adjusts token distribution to support growth while keeping supply stable.

Deep Dive

1. Core Functionality & Value Proposition

Aerodrome serves as the main platform for liquidity on the Base network. It allows users to swap tokens with minimal price impact (low slippage) and generates fees for participants. Using an automated market maker (AMM) system, it pools tokens so traders can exchange them easily. Liquidity providers (LPs) earn rewards in $AERO tokens, which are distributed weekly based on community voting. This ensures that liquidity is directed where it’s most needed in the ecosystem.

2. Tokenomics & Governance

Aerodrome uses two types of tokens:

$AERO: The utility token given as rewards to liquidity providers.
veAERO: A special governance token earned by locking up $AERO for up to four years. Holding veAERO gives users voting power over how liquidity rewards are allocated and lets them earn a portion of the protocol’s fees.

The system starts by issuing 10 million $AERO tokens weekly, but this amount decreases over time to control inflation. By late 2025, veAERO holders will be able to vote on small weekly changes (±0.01%) to token emissions through the Aero Fed system, helping balance growth with token scarcity.

3. Ecosystem Integration

Aerodrome is tightly connected to the Base network’s decentralized finance (DeFi) ecosystem. As of August 2025, it handles over $250 million in weekly trading volume and is the go-to DEX for new projects launching on Base. Its partnership with Coinbase gives millions of users easy access. Features like auto-max locks (which create permanent veAERO positions) and buybacks funded by the Public Goods Fund (locking over 150 million $AERO tokens) help align incentives for long-term success.

Conclusion

Aerodrome Finance acts as the economic foundation of the Base network by combining liquidity provision, community-driven governance, and smart token management. As decentralized finance continues to grow, its approach to emission controls and the veNFT governance model could become a new benchmark for sustainable automated market makers.