# Aero — Full Site Content > Aero is a cross-chain exchange that unifies liquidity across Ethereum, making it the best place to trade, earn, and launch any token or asset onchain. Built by Dromos Labs. --- # Aero: The Unified Liquidity Layer for All of Ethereum - URL: https://aero.xyz/ - Description: Aero is a cross-chain exchange that unifies liquidity across Ethereum, making it the best place to trade, earn, and launch any token or asset onchain. Clear Skies Ahead:\ Aero is Here ============ Aero is the unified liquidity layer for all of Ethereum: a cross-chain exchange where anyone can trade, earn, and launch onchain. Get on board\ the best place\ to trade. --------- ### Swap tokens across Ethereum. Aero allows anyone to swap tokens across the Ethereum ecosystem, automatically routing trades through the deepest, most efficient liquidity on any connected chain. ### Put your assets to work. Provide liquidity to earn competitive rewards, or stake AERO to coordinate the network and earn a share of exchange revenue. ### Unlock deep liquidity for any token. Launch, bootstrap, and grow liquidity for new or existing tokens. Aero makes it quick, easy, and efficient for builders and issuers to create sustainable liquid markets for any asset. ## Infinitely scalable across the Ethereum ecosystem. Supported chains: Base, Ethereum, Robinhood, ARC, OP Mainnet, Arbitrum, Ink. ## A zero-leak economy with maximum value distribution. Aero streams 100% of pool-level exchange revenue to AERO stakers who coordinate the flow of liquidity. [The Economics of AERO](/economics/) All exchange revenue goes to the token No private token sales All parties earn through participation ![AERO token](/images/economics/icon-aero-logo.svg) Planned Rev. Sources ## Infrastructure for the future of the onchain economy. ### Optimized for AI 100% onchain, Aero eliminates reliance on fragile APIs or centralized indexers, giving agents direct, trustless access to protocol functions for permissionless execution. ### Institutional-grade Aero is the first participant-owned liquidity infrastructure able to meet the complex needs of large-scale organizations. ### Built for integration Aero's modular architecture and adherence to industry standards ensures that any wallet, aggregator, or dApp can plug into its best-in-class execution without friction or high development costs. ## A track record of success ![Circle](/partners/circle.webp) ### Helping Circle accelerate the effects of onchain FX. Supported deep liquidity for USDC and EURC on Base, helping drive efficient stablecoin trading and onchain FX activity. $3 billion + EURC - USDC pool volume, 2025 ![Coinbase](/partners/coinbase.svg) ### Making a home for Bitcoin on Base with Coinbase. Teamed up with Coinbase to bring cbBTC on Base to the masses, with over $107.7B in cumulative volume. \#1 Bitcoin Pool Onchain, 2025 ![Celo](/partners/celo.svg) ![Self](/partners/self.svg) ### Identifying a new standard for identity verification with Celo and Self. Piloted in collaboration with Celo and Self, the VerifiedERC20 standard unlocked ZK Proof-of-Human and Eligibility at the token level. VerifiedERC20 Token-Level Proof-of-Human Aero is here.\ Get on board. ------------- [Open the App](https://app.aero.xyz)[Read the Docs](https://app.aero.xyz/docs/) --- # About Aero: Ethereum's Unified Liquidity Layer - URL: https://aero.xyz/about/ - Description: Aero is the unified liquidity layer for all of Ethereum: a cross-chain exchange that delivers institutional-grade execution, efficiency, and automation. # About Aero is the unified liquidity layer for all of Ethereum: a cross-chain exchange that delivers institutional-grade execution, efficiency, and automation. Its combination of leading tech, integrated features, and economic innovation makes Aero the essential onchain venue for users, agents, and protocols to trade, earn, and launch onchain. 100% of pool-level exchange revenue is continuously distributed to token operators who coordinate its liquidity network. ## Neutral Aero is essential market infrastructure designed as a public good for the Ethereum and EVM ecosystem. - Launched clean without VC backing or token sales - Compatible with universal interoperability standards - Scalable to any EVM chain with near-zero marginal cost ## Open Built in the true spirit of onchain systems, Aero is open and permissionless. - A decentralized network that anyone can join - Modular design unlocks flexibility and customization without sacrificing security - Onchain and composable infrastructure - Permissionless to launch, earn, and trade ## Aligned Aero's economic system is designed to align the interests of all stakeholders and unlock durable protocol health. - Exchange revenue distributed to staked AERO holders in return for their coordination of the protocol - All participants earn the same way through the same mechanisms - The MetaDEX™ flywheel delivers a better experience for LPs, traders, and stakers ## Sustainable Aero's best-in-class tech allows it to win order flow and liquidity, driving sustainable growth on an ongoing basis. - Top-performing concentrated liquidity AMM onchain - Highly efficient liquidity bootstrapping - Finely tuned economic system ![Aero Foundation](/images/about/aero-foundation-logo.svg) Neutral Steward of the Aero Protocol and Its Ecosystem ![Momentum Fund](/images/about/momentum-fund-logo.svg) Aero Foundation's Flagship Capital Allocation Program ## Contributors [![Dromos](/images/about/dromos-logo.svg)](https://dromos.xyz/) [![Wonderland](/images/about/wonderland-logo.svg)](https://wonderland.xyz/) [![Hyperlane](/images/about/hyperlane-logo.svg)](https://www.hyperlane.xyz/) [![Vending Machine](/images/about/vending-machine-logo.svg)](https://vendingmachine.design/) Aero is here.\ Get on board. ------------- [Open the App](https://app.aero.xyz)[Read the Docs](https://app.aero.xyz/docs/) --- # Aero Foundation - URL: https://aero.xyz/foundation/ - Description: The Aero Foundation is a non-profit supporting the growth, decentralization, and long-term sustainability of the Aero Protocol and its ecosystem. # Aero Foundation A non-profit organization dedicated to supporting the growth, decentralization, and long-term sustainability of the Aero Protocol and its ecosystem. 01 ## Strengthen the Core Protocol We fund the core development and research that keeps the Aero protocol secure, efficient, and reliable, ensuring the long-term health and stability of the ecosystem's liquidity engine. 02 ## Catalyze Ecosystem Innovation Through strategic grants and partnerships, we empower builders to explore the frontiers of DeFi. We actively support novel projects and technologies that expand Aero’s capabilities and drive value back to the ecosystem. 03 ## Champion Open Participation We are committed to upholding the principles of decentralized governance. We support and facilitate the role of sAERO token operators in shaping the future of the protocol. Momentum Fund ## The Aero Foundation’s flagship capital allocation program. One unified initiative for maximizing the impact of sAERO—focusing on three mandates: ### Grow Support strategic pools, bootstrap new assets, and accelerate partner growth across the network. ### Stabilize Use rewards to buy back AERO, manage supply intelligently, and lock tokens when beneficial to governance. ### Align Attract top contributors, such as developers, researchers, and other teams, by offering a short or long-term share of sAERO’s value generation to incentivize them. ![Momentum Fund](/images/about/momentum-fund-logo.svg) The Aero Foundation is an independent entity dedicated to supporting the Aero ecosystem. It does not control the protocol, which is governed by sAERO holders. --- # Metaswaps | Aero - URL: https://aero.xyz/features/metaswaps/ - Description: Cross-chain swaps powered by onchain liquidity, Metaswaps allows users to trade tokens across the network in a single transaction. No manual bridging. No leaving the app. For issuers and LPs, Metaswaps lets them deploy liquidity on one chain and have it reachable from every connected chain. Any token on any chain # Metaswaps Swap tokens across chains in a single step from one interface, powered by onchain liquidity, not off-chain counterparties. [Trade Now](https://app.aero.xyz/swap)[Read the Docs](https://app.aero.xyz/docs/products/trading) ## What makes Metaswaps different? ## All chains, all in one app Metaswaps aggregates liquidity across every connected chain, so you can swap any token on Aero for any other without ever leaving the app. No manual bridging required. ## Deep, cross-chain liquidity. No solver network needed. With Metaswaps, trades route automatically through Aero pools on any connected chain. There is no solver network. There is no dedicated bridge liquidity. Every Slipstream pool is reachable from every other through the MetaRouter. ## All complexity abstracted away On Aero, a cross-chain swap can be approved with one signature. Behind it is a full sequence: swap the input into a transport asset, move it cross-chain, swap into the destination token, and deliver. The MetaRouter compiles that sequence into a single instruction set, so you approve once. ## Metaswaps are made for everyone Traders ### A token on any chain, available on every chain Traders do not have to switch chains or work through multi-step processes. One signature. One trade. Issuers and LPs ### Liquidity that scales across the network Deposit liquidity on one chain and Metaswaps will automatically source volume from across the network. One pool. Unlimited scale. Builders ### Plug-and-go integration An SDK will make integration quick and easy for wallets, aggregators, dApps, CEXs, AI agents, and more. Cross-chain trades.\ Zero trade-offs. ---------------- ### Cheap Typically lower cost than paying bridge, aggregator, and DEX fees separately. ### Fast No solver latency and no bridge withdrawal queues. Speed is set by block times and message delivery. ### Safe No risk of bridge liquidity providers pulling out during a volatility spike. ### Private Orders not shopped to a solver network or an off-chain desk before execution. ## Cross-chain swaps the way they were meant to be. [Trade Now](https://app.aero.xyz/swap)[Read the Docs](https://app.aero.xyz/docs/products/trading) --- # Predictive Allocation | Aero - URL: https://aero.xyz/features/predictive-allocation/ - Description: Aero’s Predictive Allocation optimizes capital allocation and revenue, rewarding stakers and LPs who position ahead of demand — not just in response to it. proof-of-foresight # Predictive Allocation A new onchain primitive for continuous, cross-chain capital allocation and revenue distribution, rewarding stakers and LPs for positioning in anticipation of demand, not just in response to it. [Stake AERO](https://app.aero.xyz/stake)[Read the Docs](https://app.aero.xyz/docs/features/predictive-allocation) ## Believe in the future, and be rewarded. Stakers can always allocate to reliable pools to earn steady rewards, but they can also choose to allocate AERO Rewards based on conviction: a belief about where the market is going next, and earning more when they’re right. ## A system that responds in real time Predictive Allocation means resources aren’t locked into underperforming pools for a full week. Capital finds its most productive use in real time. ## Winning bets benefit everyone When an allocation draws liquidity to a pool that then becomes productive, it’s net-positive for the entire ecosystem. The early allocator earns an outsized reward, and Aero gets a productive pool that may not have existed otherwise. ## Automated allocation available For anyone looking for a less manual process, Autopilot is built in and easily configured to handle everything, from initial allocation to compounding returns over time. How it Works ## Earn revenue from the pools you allocate to sAERO holders live-allocate AERO Rewards to liquidity pools and earn Exchange Revenue as it accrues, pool by pool, in real time. Allocations can shift every 48 hours at launch, subject to a cooldown period that shortens over time. When they do, returns redirect instantly. Step 01 ### Allocate AERO Rewards sAERO holders (stakers) allocate AERO to liquidity pools. That AERO streams in real time as LP rewards, attracting liquidity to the pool. Step 02 ### Earn Exchange Revenue As revenue accrues to the liquidity pool, 100% of it is streamed to stakers who are actively supporting the pool with AERO allocation. Step 03 ### Reallocate to Shift Earnings At any time, subject to a cooldown period, stakers can choose to reallocate to a different pool. The moment allocation shifts, AERO begins streaming to the new pool and revenue share is recalculated. ## Stake AERO to direct rewards and earn a share of revenue. [Stake AERO](https://app.aero.xyz/stake)[Read the Docs](https://app.aero.xyz/docs/features/predictive-allocation) --- # Slipstream | Aero - URL: https://aero.xyz/features/slipstream/ - Description: Slipstream is Aero’s most capital-efficient AMM. Make your capital work smarter with MEV protection and capture, dynamic fees, full onchain data visibility, and institution-ready permissioning. Liquidity with sky-high efficiency # Slipstream Powered by dynamic fees and active-range rewards, Slipstream is one of the world's most capital-efficient concentrated liquidity AMMs, now with protocol-level MEV capture. [Deposit Liquidity](https://app.aero.xyz/deposit)[Read the Docs](https://app.aero.xyz/docs/features/slipstream) ## A concentrated liquidity AMM built for everyone. LPs ### Capital that works harder and smarter Slipstream is consistently able to capture more volume and fee share across market conditions and pools, delivering more value for LPs on Aero. Traders ### Deep productive liquidity around the active price Slipstream only rewards liquidity in its active range, which keeps depth concentrated where trades actually clear. The result is tighter fills across trade sizes. Issuers ### A pool anywhere is a pool everywhere Every Slipstream pool is connected, so issuers can concentrate POL and incentives in one pool on one chain and serve flow from across the liquidity network. ## Dynamic fees that outcompete Slipstream prices each swap against current market conditions, dynamically adjusting fees according to demand. Fees recalculate as trades move the price, increasing returns for LPs to protect against volatility. ## Full onchain data visibility Every pool keeps its books. The new Pool Tape contract records data such as fees, volume, swap count, time-weighted liquidity, and which volume was MEV-classified. Pool-level history is then stored onchain and queryable by any contract. LPs can check what a pool has actually earned before depositing without having to trust off-chain estimates. ## Built for institutions Slipstream is built to compete for institutional flow on transparent terms. Desks, aggregators and routers can be registered for a fee discount in a shared, onchain registry. Terms that used to live inside a private agreement can now sit onchain. Internalized MEV ## Where other AMMs leak value, Slipstream internalizes it. Most AMMs leak value to bots and sequencers. Slipstream intercepts MEV on L2s, redirecting value back through the fee path to LPs and sAERO. ## How Slipstream works ### Active Tick Rewards LPs select a price range where their capital will be active. Aero only streams rewards to liquidity when it is used for trades. ### Competitive Yield LPs can choose to earn AERO Rewards that are allocated by token operators, even in advance of trading activity. ### Strategic Positioning Out-of-range, single-sided deposits can express a price view onchain, behaving much like a range order in traditional finance. ## Make your capital work smarter. [Deposit Liquidity](https://app.aero.xyz/deposit)[Read the Docs](https://app.aero.xyz/docs/features/slipstream) --- # Learn More About the Aero Economy - URL: https://aero.xyz/economics/ - Description: Learn how the Aero economy works: the first predictive liquidity marketplace with real-time rewards and revenue distribution. # AERO Economics Aero is the unified liquidity layer for all of Ethereum—built to win trading flow, increase the value of that flow, and optimize the underlying token economy. ## Protocol Metrics A complete picture of protocol-wide activity, including the latest Aero metrics alongside the historical data of its predecessors: Aerodrome and Velodrome. 7 Chains Reporting Chains: Base, Ethereum, Robinhood, ARC, OP Mainnet, Arbitrum, Ink. Data pulled 2026-10-27T07:27:34Z. Lifetime Exchange Revenue: $581M. ### By Chain - Base $511.2M - OP Mainnet $64.9M - Ink $2.7M - Robinhood $57K - Ethereum $52K - Arbitrum $13K - ARC $5K - Pre-Aero Chains $2.3M Revenue from chains that were supported by Aero's predecessor, Velodrome: Unichain, Fraxtal, Soneium, Lisk, Mode, and Celo. By Quarter _Revenue breakdown by period (Aerodrome + Velodrome + Superchain + Aero)_ | Period | Revenue | | ------- | -------------------------------------------- | | Q3 2023 | $12.9M | | Q4 2023 | $6.4M | | Q1 2024 | $30.7M | | Q2 2024 | $78.5M | | Q3 2024 | $57.7M | | Q4 2024 | $111.2M | | Q1 2025 | $71.8M | | Q2 2025 | $40.6M | | Q3 2025 | $63.6M | | Q4 2025 | $38.6M | | Q1 2026 | $20.5M | | Q2 2026 | $16.4M | | Q3 2026 | $25.8M | | Q4 2026 | $6.5M (in progress — projected total $21.2M) | ### Protocol Current TVL: $322.42M. Cumulative Volume: $492.40B. Cumulative Fees: $404.45M. These totals include Aerodrome on ARC: $5.67M TVL, $154.37M cumulative volume and $84.58K cumulative fees. ### Supply AERO Total Supply: 2.13B. Avg. Stake Duration: 3.95 years. Staked sAERO: 982.64M (46.1%). Liquid AERO: 1.15B (53.9%). See every metric all in one place A growing library of protocol metrics, updated daily from onchain data. [View Protocol Metrics](/economics/metrics/) Aero Dynamics ## No voting. No epochs. No delay between revenue accrual and distribution. Unlike the epoch-based system of Aerodrome and Velodrome, the new Aero follows a real-time allocation process. In this new system—a first for DeFi—there is no voting, no epochs, and no delay between revenue accrued and revenue distributed to staked participants. New ### Predictive Allocation Token Operators (sAERO holders) allocate AERO rewards which stream in real time to liquidity pools, and in return those sAERO holders earn exchange revenue as it accrues to those markets. On a regular cadence, Token Operators can choose to reallocate, dynamically redirecting rewards in anticipation of shifts in market dynamics. New ### Autopilot Enabled sAERO holders looking for a hands-off approach can configure management of their position through Autopilot, which automates the allocation process and can compound or convert earned exchange revenue on a regular cadence. ## Own the flow of the future. Aero operates as a zero-leak economy, where maximum value is distributed to users of the system, including the token operators who coordinate the flow of liquidity, and the liquidity providers who deposit assets that make efficient value exchange possible. ## Stake your claim Holders who stake their tokens optimize the Aero economy by allocating AERO rewards to liquidity pools. In return, they receive a pro rata share of 100% of the exchange revenue accruing to the pool(s) they support. ## Liquid ownership Each holder decides how long to stake their AERO. Once staked, the position is represented as an NFT that can be traded or transferred at any time. ## Aligned for growth All stakeholders—from institutional investors to the Aero Foundation and Dromos Labs—earn through the same mechanics, structurally aligning the interests of all participants. ## Learn about the all-new economic engine of Aero. [Read Article](/articles/the-aero-economy/) --- # Aero Protocol Metrics - URL: https://aero.xyz/economics/metrics/ - Description: Aero's unified protocol dashboard — track lifetime exchange revenue, TVL, volume, swap fees, and more all in one place. # Protocol Metrics A complete picture of protocol-wide activity, including the latest Aero metrics alongside the historical data of its predecessors: Aerodrome and Velodrome. Sourced from [Dune Analytics](https://dune.com/) via [Dune API](https://docs.dune.com/api-reference/overview/introduction) — Verified onchain data for Aero. 7 Chains Reporting Chains: Base, Ethereum, Robinhood, ARC, OP Mainnet, Arbitrum, Ink. Data pulled 2026-10-27T07:27:34Z. Historical series data pulled 2026-10-27T07:24:30Z. ## Lifetime Exchange Revenue Lifetime exchange revenue, Aerodrome, Velodrome and Aero combined: $581M. Exchange Revenue by Source. Latest week, Oct 22, 2026: $732K in trading fee revenue and $267K in liquidity payments. Over the last 13 weeks the weekly total ranged from $871K to $8.9M. Cumulative revenue since inception: $581.2M. _Exchange revenue by quarter (Aerodrome + Velodrome + Superchain + Aero)_ | Quarter | Revenue | | ------- | -------------------------------------------- | | Q3 2023 | $12.9M | | Q4 2023 | $6.4M | | Q1 2024 | $30.7M | | Q2 2024 | $78.5M | | Q3 2024 | $57.7M | | Q4 2024 | $111.2M | | Q1 2025 | $71.8M | | Q2 2025 | $40.6M | | Q3 2025 | $63.6M | | Q4 2025 | $38.6M | | Q1 2026 | $20.5M | | Q2 2026 | $16.4M | | Q3 2026 | $25.8M | | Q4 2026 | $6.5M (in progress — projected total $21.2M) | Exchange revenue totals are exact. Only the split between trading fee revenue and liquidity payments is approximated, on Velodrome's non-Optimism chains — V3 pools count as trading fees, V2 as liquidity payments — a small share of the total. ### By Chain - Base $511.2M - OP Mainnet $64.9M - Ink $2.7M - Robinhood $57K - Ethereum $52K - Arbitrum $13K - ARC $5K - Pre-Aero Chains $2.3M Revenue from chains that were supported by Aero's predecessor, Velodrome: Unichain, Fraxtal, Soneium, Lisk, Mode, and Celo. ## Protocol TVL. Current TVL: $322.42M. Latest day, Oct 27, 2026: $323M. Over the last 30 days the daily figure ranged from $319M to $403M. Volume. Cumulative Volume: $492.40B. Latest day, Oct 27, 2026: $137M. Over the last 30 days the daily figure ranged from $137M to $702M. Swap Fees. Cumulative Fees: $404.45M. Latest day, Oct 27, 2026: $48K. Over the last 30 days the daily figure ranged from $48K to $522K. ## Supply AERO total supply 2.13B, average sAERO lock duration 3.95 years. 46.1% of the AERO supply is currently staked. AERO Stake Rate. Latest week, Oct 22, 2026: 46.1% of the AERO supply staked. AERO emissions for the week of Oct 22, 2026: 2.58M AERO in total — 2.48M to LPs, 0 rebase, 101.43K team. AERO Buybacks and New Stakes. Lifetime through Oct 21, 2026: 179.95M AERO bought back or locked — Claimed Voting 41.01M, Momentum Fund 109.99M, Project Relays 6.37M, veAERO Maxi 22.58M. The AERO series blends Aerodrome and converted Velodrome through the 2026-10-15 epoch; from 2026-10-22 it is Aero alone. _AERO supply distribution, most recent weeks_ | Week | Total supply | Staked | Staked share | | ------------ | ------------ | ------- | ------------ | | Oct 22, 2026 | 2.13B | 982.64M | 46.15% | | Oct 15, 2026 | 2.12B | 1.08B | 51.12% | | Oct 8, 2026 | 2.11B | 1.05B | 49.89% | | Oct 1, 2026 | 2.11B | 1.05B | 49.79% | ## Learn about the all-new economic engine of Aero. [Read Article](/articles/the-aero-economy/) _Machine-readable dataset (the aggregated series behind the charts above):_ ```json {"meta":{"about":"Aggregated Aerodrome + Velodrome + Aero (v3) from 2026-10-22 series behind the charts on https://aero.xyz/economics/metrics/. Token amounts are in AERO: Velodrome's VELO figures are converted at 0.044 AERO per VELO before they are added. Periods sort ascending as strings: YYYY-MM-DD is a week start, YYYY-MM a month, YYYYQn a quarter. null means the source did not report that period, not zero.","currency":"USD","headlinePulledAt":"2026-10-27T07:27:34Z","seriesPulledAt":"2026-10-27T07:24:30Z","series":{"revenue.quarterly":"Exchange revenue per quarter, USD, reconciled source; `projected` is the run-rate remainder of the quarter in progress.","revenue.monthly":"Exchange revenue per month, USD, summed from the weekly epochs; the same epochs grouped by quarter give revenue.quarterly.","protocolsMonthly":"Per month, USD: tvl at the month's last reported day (a stock), volume and fees summed (flows). On the month in progress, `projected` carries the run-rate remainder for the flows — matching the charts' hatched segment.","feesIncentives":"Trading fee revenue and liquidity payments distributed per weekly epoch, USD, combined across protocols, last 13 weeks. Distinct from protocolsMonthly.fees (swap fees). cumulativeRewards is lifetime booked weekly revenue, the chart's cumulative line. Source components are null when missing or inconsistent with booked revenue. Exchange revenue totals are exact. Only the split between trading fee revenue and liquidity payments is approximated, on Velodrome's non-Optimism chains — V3 pools count as trading fees, V2 as liquidity payments — a small share of the total.","lockRateQuarterly":"Share of the AERO supply staked at each quarter's close, percent: Σ locked ÷ Σ total supply with VELO converted, not a mean of two protocols' rates; from 2026-10-22, Aero (v3) staked ÷ its total supply, which includes the migration reserve pre-minted for legacy holders who have not upgraded yet.","emissionsWeekly":"AERO emitted per weekly epoch, Aerodrome plus converted Velodrome (Aero (v3) alone from 2026-10-22), split lp/rebase/team, last 13 weeks. annualizedInflationPct = total ÷ circulating × 52 × 100, null on a week only one protocol reported; from 2026-10-22, circulating is the Aero (v3) total supply, migration reserve included, and a week still open at the pull is scaled to a full week by time elapsed.","supplyDistributionWeekly":"AERO supply per week, Aerodrome plus converted Velodrome (Aero (v3) alone from 2026-10-22), last 13 weeks. lockPct and avgLockYears are re-derived from the converted totals; the series ends at the last week both protocols reported.","buybacksQuarterly":"AERO bought back or locked per quarter, whole tokens, by programme — flows, where the chart draws the running total. Claimed Voting is voting rewards claimed by the team voters, not bought back; Momentum Fund is AERO bought with the programme's USDC plus AERO its Flight School relay locked, net of rebases, the genesis seed and AERO already counted as bought; veAERO Maxi and Project Relays are AERO locked into VotingEscrow by AutoCompounder relays. total is the four summed."},"omitted":["Monthly series before 2024-11 — the last 24 months are carried; quarterly revenue keeps its full history.","Weekly and monthly lock rate — a stock that moves a fraction of a point per week, so quarterly closes carry the shape.","Emissions, supply distribution, and fees and incentives before the last 13 weeks.","Everything omitted here is on the page's charts, which cover full history at week grain."]},"revenue":{"quarterly":[{"period":"2023Q3","total":12891376},{"period":"2023Q4","total":6417946},{"period":"2024Q1","total":30720837},{"period":"2024Q2","total":78486234},{"period":"2024Q3","total":57749082},{"period":"2024Q4","total":111221222},{"period":"2025Q1","total":71840307},{"period":"2025Q2","total":40557889},{"period":"2025Q3","total":63600085},{"period":"2025Q4","total":38599384},{"period":"2026Q1","total":20490398},{"period":"2026Q2","total":16374969},{"period":"2026Q3","total":25782633},{"period":"2026Q4","total":6466596,"projected":14780791}],"monthly":[{"period":"2024-11","value":35947383},{"period":"2024-12","value":41532255},{"period":"2025-01","value":40395151},{"period":"2025-02","value":19291004},{"period":"2025-03","value":12154152},{"period":"2025-04","value":10081879},{"period":"2025-05","value":17520145},{"period":"2025-06","value":12955864},{"period":"2025-07","value":17414675},{"period":"2025-08","value":17624487},{"period":"2025-09","value":28560922},{"period":"2025-10","value":19502815},{"period":"2025-11","value":12299624},{"period":"2025-12","value":6796945},{"period":"2026-01","value":8670804},{"period":"2026-02","value":6439859},{"period":"2026-03","value":5379735},{"period":"2026-04","value":5604339},{"period":"2026-05","value":5943181},{"period":"2026-06","value":4827449},{"period":"2026-07","value":5581568},{"period":"2026-08","value":4933287},{"period":"2026-09","value":15267778},{"period":"2026-10","value":6466596}]},"protocolsMonthly":[{"period":"2024-11","tvl":1115643524,"volume":29053244299,"fees":23010908},{"period":"2024-12","tvl":1039527740,"volume":36937217197,"fees":34317395},{"period":"2025-01","tvl":758652324,"volume":32428481425,"fees":32948510},{"period":"2025-02","tvl":506709184,"volume":20936517098,"fees":18690839},{"period":"2025-03","tvl":473883770,"volume":15085991559,"fees":12100451},{"period":"2025-04","tvl":468505202,"volume":12505191679,"fees":9837315},{"period":"2025-05","tvl":547618927,"volume":18474754693,"fees":14714998},{"period":"2025-06","tvl":611717323,"volume":14770418131,"fees":13567366},{"period":"2025-07","tvl":600724596,"volume":19933821016,"fees":15009515},{"period":"2025-08","tvl":664351534,"volume":23965303117,"fees":18154776},{"period":"2025-09","tvl":654879701,"volume":20247456997,"fees":16182247},{"period":"2025-10","tvl":525436832,"volume":24937167913,"fees":17590281},{"period":"2025-11","tvl":429232775,"volume":18134136377,"fees":12543456},{"period":"2025-12","tvl":451597126,"volume":13358008999,"fees":7273740},{"period":"2026-01","tvl":387299222,"volume":14004876941,"fees":7806020},{"period":"2026-02","tvl":340494102,"volume":11763569422,"fees":7277370},{"period":"2026-03","tvl":321719662,"volume":10232683987,"fees":6559593},{"period":"2026-04","tvl":355752676,"volume":13586875251,"fees":4824792},{"period":"2026-05","tvl":364617309,"volume":15900289112,"fees":6464529},{"period":"2026-06","tvl":324971553,"volume":16604902585,"fees":6218437},{"period":"2026-07","tvl":300615025,"volume":12177432238,"fees":5215079},{"period":"2026-08","tvl":340939483,"volume":11762070033,"fees":6260377},{"period":"2026-09","tvl":388370732,"volume":13044398957,"fees":10339888},{"period":"2026-10","tvl":323136500,"volume":12690743926,"fees":7884359,"projected":{"volume":1880110211,"fees":1168053}}],"feesIncentives":{"cumulativeRewards":581198958,"weekly":[{"period":"2026-07-30","fees":924758,"incentives":87950},{"period":"2026-08-06","fees":773309,"incentives":107530},{"period":"2026-08-13","fees":785157,"incentives":85582},{"period":"2026-08-20","fees":1012250,"incentives":215974},{"period":"2026-08-27","fees":1874489,"incentives":78996},{"period":"2026-09-03","fees":1208334,"incentives":7703860},{"period":"2026-09-10","fees":1575040,"incentives":236732},{"period":"2026-09-17","fees":1643775,"incentives":215244},{"period":"2026-09-24","fees":1846869,"incentives":837925},{"period":"2026-10-01","fees":1715071,"incentives":293537},{"period":"2026-10-08","fees":1532564,"incentives":213188},{"period":"2026-10-15","fees":1703871,"incentives":9120},{"period":"2026-10-22","fees":732189,"incentives":267056}]},"lockRateQuarterly":[{"period":"2023Q3","lockPct":83.14},{"period":"2023Q4","lockPct":68.74},{"period":"2024Q1","lockPct":60.6},{"period":"2024Q2","lockPct":54.92},{"period":"2024Q3","lockPct":51.19},{"period":"2024Q4","lockPct":49.57},{"period":"2025Q1","lockPct":49.11},{"period":"2025Q2","lockPct":49.72},{"period":"2025Q3","lockPct":49.07},{"period":"2025Q4","lockPct":50.07},{"period":"2026Q1","lockPct":50.66},{"period":"2026Q2","lockPct":50.35},{"period":"2026Q3","lockPct":49.89},{"period":"2026Q4","lockPct":46.15}],"emissionsWeekly":[{"period":"2026-07-30","lp":4421677,"rebase":483294,"team":220085,"total":5125056,"circulating":2062527748,"annualizedInflationPct":12.92},{"period":"2026-08-06","lp":4432679,"rebase":486049,"team":220152,"total":5138881,"circulating":2067626660,"annualizedInflationPct":12.92},{"period":"2026-08-13","lp":444371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``` --- # The Latest from Aero: The Unified Liquidity Layer for Ethereum - URL: https://aero.xyz/articles/ - Description: Read the latest news and updates about Aero: the cross-chain exchange that unifies liquidity and powers trading across the entire Ethereum ecosystem. # The Latest [![Aero Launches Today: Get on Board](/images/articles/aero-launches-today/banner.webp)](/articles/aero-launches-today/) ## [Aero Launches Today: Get on Board](/articles/aero-launches-today/) [Oct 21, 2026](/articles/aero-launches-today/) [![The Aero Economy](/images/articles/the-aero-economy/banner.webp)](/articles/the-aero-economy/) ### [The Aero Economy](/articles/the-aero-economy/) [Oct 19, 2026](/articles/the-aero-economy/) [![Aero Launch Update: All Systems Go](/images/articles/aero-launch-update-all-systems-go/banner.webp)](/articles/aero-launch-update-all-systems-go/) ### [Aero Launch Update: All Systems Go](/articles/aero-launch-update-all-systems-go/) [Sep 25, 2026](/articles/aero-launch-update-all-systems-go/) [![Aero Lite is Live on Arc](/images/articles/aero-lite-is-live-on-arc/banner.webp)](/articles/aero-lite-is-live-on-arc/) ### [Aero Lite is Live on Arc](/articles/aero-lite-is-live-on-arc/) [Sep 16, 2026](/articles/aero-lite-is-live-on-arc/) [![Coinbase Tokenized Stocks Launch on Aerodrome](/images/articles/coinbase-tokenized-stocks-launch-on-aerodrome/banner.webp)](/articles/coinbase-tokenized-stocks-launch-on-aerodrome/) ### [Coinbase Tokenized Stocks Launch on Aerodrome](/articles/coinbase-tokenized-stocks-launch-on-aerodrome/) [Aug 24, 2026](/articles/coinbase-tokenized-stocks-launch-on-aerodrome/) [![Aero is on the Horizon](/images/articles/aero-is-on-the-horizon/banner.webp)](/articles/aero-is-on-the-horizon/) ### [Aero is on the Horizon](/articles/aero-is-on-the-horizon/) [Jul 16, 2026](/articles/aero-is-on-the-horizon/) [![The AER Engine and the Aero Economy](/images/articles/the-aer-engine-and-the-aero-economy/banner.webp)](/articles/the-aer-engine-and-the-aero-economy/) ### [The AER Engine and the Aero Economy](/articles/the-aer-engine-and-the-aero-economy/) [Jun 7, 2026](/articles/the-aer-engine-and-the-aero-economy/) [![The AER Engine: FAQ](/images/articles/aero-the-aer-engine-faq/banner.webp)](/articles/aero-the-aer-engine-faq/) ### [The AER Engine: FAQ](/articles/aero-the-aer-engine-faq/) [Jun 6, 2026](/articles/aero-the-aer-engine-faq/) [![Aero + Predictive Allocation FAQ](/images/articles/aero-predictive-allocation-faq/banner.webp)](/articles/aero-predictive-allocation-faq/) ### [Aero + Predictive Allocation FAQ](/articles/aero-predictive-allocation-faq/) [May 8, 2026](/articles/aero-predictive-allocation-faq/) [![Aero Dynamics: The Economics of Ethereum’s Unified Liquidity Layer](/images/articles/aero-economic-case/banner.webp)](/articles/aero-economic-case/) ### [Aero Dynamics: The Economics of Ethereum’s Unified Liquidity Layer](/articles/aero-economic-case/) [Mar 30, 2026](/articles/aero-economic-case/) [![New Terminology for a New Era](/images/articles/aero-terminology/banner.webp)](/articles/aero-terminology/) ### [New Terminology for a New Era](/articles/aero-terminology/) [Mar 29, 2026](/articles/aero-terminology/) --- # Aero Dynamics: The Economics of Ethereum’s Unified Liquidity Layer — Aero - URL: https://aero.xyz/articles/aero-economic-case/ - Description: The economic rationale behind Aero as the unified liquidity layer for Ethereum. ![Aero Dynamics: The Economics of Ethereum’s Unified Liquidity Layer](/images/articles/aero-economic-case/banner.webp) March 30, 2026 # Aero Dynamics: The Economics of Ethereum’s Unified Liquidity Layer ## The Past Aerodrome and Velodrome, both built on the MetaDEX02 model from Dromos Labs, proved that exchanges that put token holders and liquidity providers first win. Together, these protocols have processed $342 billion in trading volume, distributed over $1.3 billion in onchain value to active participants, and captured a leading market share of volume on nearly every chain where they are deployed. These two protocols have weathered years of changing market conditions and have emerged as battle-hardened category leaders. Aerodrome recently crossed the threshold of earning more than $1 of revenue per $1 of emissions, completely offsetting dilution while maintaining market dominance. ![Bar chart of Aerodrome revenue per $1 of emissions by quarter, rising from $0.047 in Q1 2025 to $1.08 in Q4 2025 and $1.10 in Q1 2026 — crossing above $1.00 into net profitability. Source: Artemis, February 2026.](/_astro/chart-profitability.Bf8L6A1p_Z2meX6l.webp) Soon, Aerodrome and Velodrome will come together as Aero, the unified liquidity layer for all of Ethereum. ## The Future While most decentralized exchanges fragment value across isolated chains, distinct treasuries, and disjointed governance structures, Aero will consolidate it. MetaDEX03, the DEX OS that Aero will be built on top of, carries forward everything that worked in MetaDEX02 and introduces evolved economics designed to scale MetaDEX02’s advantages over its competitors even further. This piece will build on our [November presentation](https://youtu.be/wXdXjPvZz6M?si=KmqxhsFS6fsQh2hZ), more fully revealing Aero and the economic system behind it. It will also fill in some key information about the launch that users want to know. First, we will cover the shift from epoch voting to Predictive Allocation in detail. Then, we will provide some quicker updates on a few other topics—the AERO Fed, the REV Engine, and the Momentum Fund—in advance of more detailed deep dives to come. All of these features will be highlighted in a unified economic framework that will be released after these deep dives. --- ## Predictive Allocation ### Background When decentralized exchanges debuted, they were simple self-organizing marketplaces. Liquidity Providers deposited assets and earned fees. Although this enabled a whole new level of permissionless, passive market formation, the design could be fragile and reflexive. Coordinated marketplaces like Velodrome and Aerodrome solved major issues inherent to legacy decentralized exchange design by introducing a new stakeholder group: the token operator. Token operators vote each week to direct the following week’s liquidity rewards. For this service, they earn protocol revenue that has accumulated from those pools that they vote for. This creates a steadier stream of rewards for LPs and creates the conditions for powerful liquidity bootstrapping for emergent tokens without established markets. Although a step change forward from past systems, incentivizing people to allocate resources based on a pool’s past performance, the weekly voting system created two limitations: it can be slow to respond to emerging opportunities, and it can sometimes stream rewards to pools that are no longer productive by the time a new week begins. ### MetaDEX03 In November, we announced that MetaDEX03 would solve both of these issues with the AER Engine’s gauge caps and dynamic emissions. First: gauge caps would limit the amount of AERO a pool could receive, based on market activity. In doing so, they function as a security feature for the DEX. More specifically, if the value of emissions exceeds the value of fees generated by a pool above a set multiplier, gauge caps can capture the overage and burn it, reducing long-term inflation and extractive farming. The multiplier limit can be set flexibly for different pools based on the liquidity incentives required to optimize for competitive dynamics. Second: dynamic emissions would flexibly adjust the emissions rate to more precisely align with the ebb and flow of trading activity during the week, surging when activity increased, and reducing emissions during slower trading periods. As development on dynamic emissions progressed, a more novel and exciting way to accomplish the same goals emerged. The motivating logic was simple: why find truth via one immutable model when we could build a market that finds truth by incentivizing thousands of models to compete? This new path would allow us to keep smart contract logic simple, serving as the foundation for a future-proof platform powered by the foresight of sAERO holders, an asset unique to Aero. This change would also allow Aero to maintain dominance as the agentic economy grows, and onchain actions become faster, cheaper, and more automated. ### Predictive Allocation This was the beginning of what would become a new onchain primitive: **Predictive Allocation**, a decentralized mechanism for the concurrent, continuous, and cross-chain allocation of rewards and distribution of revenue. Where token operators are fully aligned with the protocol not just because they receive a share of 100% of protocol revenue, but because they are rewarded more for driving the protocol’s growth. With Predictive Allocation, instead of token operators voting weekly to direct the following week’s AERO rewards, they will live-allocate rewards to pools in real time. Then, instead of receiving a lump-sum distribution of accumulated revenue, a token operator’s share will stream to them live. Revenue is distributed as quickly as it accrues. And they’ll be making allocations more often. Where the weekly voting model incentivizes voters based upon a single backward-looking signal—accrued revenue—Predictive Allocation creates a live market where every token operator, whether an individual, a fund, or an autonomous agent, brings their own model of where productivity is heading. Instead of using past performance to organize liquidity on the platform, the new system will aggregate thousands of views of the future. And operators will be rewarded differentially based on the accuracy of their predictions. This creates a competitive market that rewards token operators for making the system itself more efficient. With this system, each allocation functions as a prediction of where _future_ trading activity will occur. By positioning ahead of the market, allocators will capture a larger share of revenue when volume materializes. This dynamic can build deep, anticipatory liquidity that produces value for the whole system. At the same time, a pool that stops generating fees can stop receiving rewards sooner as allocations shift. At launch, Predictive Allocation is currently planned to operate with a 48-hour minimum cooldown window in between allocation changes, allowing participants to adapt to the new system. As users acclimate, the cooldown window will shorten and approach a more fully continuous state. Gauge caps will continue to operate as a check on emissions overallocation. Users who want to set their allocation strategy, but do not want to micromanage the position can use Autopilot to automate the allocation process. ![Diagram titled “A Self-Correcting System”: under Predictive Allocation, rewards ramp up ahead of trading volume and both taper together, while the AERO rewards stream and exchange revenue stream run continuously along the timeline.](/_astro/chart-predictive-allocation.B-Pvp8Oy_OMw9C.webp) ### The data behind the system Using a data set from the last 180 days with 40 of the top pools on Aerodrome, we see why utilizing trailing fees as a capital allocation signal is sub-optimal. (A quick note, this chart doesn’t represent actual performance of the DEX, as voters operated across a wider range of pools.) The chart shows how close AERO rewards (emissions) allocated using historical fees as the signal were to the actual fees generated during the following window. Unsurprisingly, a two-week old signal is not very accurate, placing hypothetical emissions “on target” within 2 percentage points (pp) only 48% of the time. If we use a basic predictive signal weighting trailing fees over a 24-hour period and revoting every 48 hours, we improve the “on-target” emissions to 64% and drop “off-target” emissions from 31% to 15%. Finally, if you include gauge caps that prevent overallocation, i.e. if fees don’t materialize in a time window, “on-target” increases to 70% but “off-target” (>5pp off) drops to 8%, a 75% improvement. In addition, 5.1% of emissions during this time period get burned by the caps. ![Three bullseye charts comparing emissions accuracy over 180 days across 40 pools: the current two-week epoch signal lands on-target 48% of the time with 31% off-target; a 24-hour predictive signal re-allocated every 48 hours reaches 64% on-target and 15% off; adding gauge caps reaches 70% on-target and 8% off while burning 5.1% of emissions.](/_astro/chart-emissions-accuracy.DcJ1Km2s_2btzI2.webp) ### Predictive Allocation works - the cbBTC story Narrowing voting windows and adding gauge caps can go a long way to improving the allocation of AERO rewards, but there is a limit on the improvement that can be achieved using past performance of a pool to incentivize the allocation of future rewards. The remaining 30% of emissions allocated “off-target” need something else to close that gap. Forward-looking capital allocators incentivized to bet on future fees can prepare the liquidity environment for new trading activity ahead of time. Why are we confident this will work? Because we have concrete evidence that it does. The Aerodrome Foundation’s Public Goods Fund’s mandate to encourage protocol growth means that it already engages in a form of predictive allocation to great success. One of the Foundation’s successes was bootstrapping cbBTC. In 2024 Coinbase launched cbBTC, a new BTC wrapper product across a number of chains. But the Base chain had something no other chain did: AERO. Coinbase Ventures and the Aerodrome Foundation used voting positions to seed liquidity rewards early with the idea that future fees and use cases would materialize—and they did. Base dominated volumes in the year after the cbBTC launch. But more importantly, Base created the type of activity to make cbBTC a useful and productive asset. Left to their own devices, self-organizing LPs operating on Ethereum Mainnet and Arbitrum paired cbBTC with the incumbent asset wBTC in low-fee arbitrage pairs. On Base, powered by an early form of predictive allocation of resources towards cbBTC’s potential and its fast connection between Coinbase and Base, cbBTC became a spot trading powerhouse. Whereas, on Arbitrum, for example, volumes failed to materialize at any significant level. ![Stacked bar chart of monthly cbBTC trading volume in its first year, split by pair type: Base peaks near $12B per month across ETH/LST, stablecoin, and BTC-variant pairs; Ethereum stays under $4B and almost entirely BTC-variant pairs; Arbitrum is near zero.](/_astro/chart-cbbtc-volumes.D2x-u0Dx_Z1R4N7C.webp) So in the six months after the cbBTC launch, what was the signal that fees produced for LPs on Ethereum mainnet vs. Base? The difference shown in the chart below is clear. On Base, LPs received the signal that cbBTC was a useful spot trading asset with the majority of activity happening on Aerodrome pools. On Ethereum mainnet? A hodgepodge of different DEX pools mainly paired with wBTC on different DEXs with different fee parameters. ![Bubble chart of six months of cbBTC fees by pool (Sep 2024–Feb 2025), each bubble sized by fees generated: on Base, fees concentrate in a few large Aerodrome spot pools; on Ethereum, fees fragment across small Uniswap, Curve, and Fluid pools, many of them arbitrage pairs.](/_astro/chart-cbbtc-fees.BjXygflH_Z1fDg54.webp) The result: in the year after launch, cbBTC failed to make inroads on Ethereum mainnet or other L2s. Whereas on Base, useful volumes spiked, unlocking new use cases such as the Coinbase Lend product that is backed by onchain liquidity. ![Grouped monthly bar chart of the full BTC trading landscape from Sep 2024 to Aug 2025: cbBTC volume on Base grows to lead nearly every month at up to $12B+, wBTC on Ethereum trails and declines, and cbBTC on Ethereum stays negligible throughout.](/_astro/chart-cbbtc-result.80YukU2n_Z1t0tGJ.webp) ### Enabling predictive signals improves outcomes for all MetaDEX stakeholders A key unlock of the MetaDEX is that it’s built on the understanding that a modern DEX functions as a 3-sided economy, balancing the needs of traders, liquidity providers, and token operators. The shift to Predictive Allocation has impacts on all three groups. ![Diagram of the MetaDEX three-sided economy: traders, liquidity providers, and token operators arranged in a triangle — liquidity flows to traders, 100% of revenues flow to token operators, and 100% of AERO rewards flow to liquidity providers. Goals: distribute 100% of revenue, reward active participation, align incentives and outcomes.](/_astro/chart-stakeholders.BWQsqBQR_tJLUv.webp) Token operators and liquidity providers (LPs) in the MetaDEX have competing goals. Operators want LPs to provide liquidity as cheaply as possible, and LPs want to maximize rewards all the time. The common ground the MetaDEX provides is that operators are fine paying for a valuable service, active liquidity that can maximally produce future fees from traders. And LPs, in return, want a consistent stream of rewards so that they can adequately price their risk and return. Compared to self-organized liquidity, epoch voting represented a step forward. Aggregating fees over time provided a more consistent signal as to what liquidity would be valuable long-term. In return, LPs got a consistent stream of active tick rewards, often in excess of the fees they were generating. However, while MetaDEX02 improved the baseline from fee-only DEXs, it still can produce inefficient results. Predictive Allocation enables the design space for predictive signals. For example, on the CL100-WETH/cbBTC pool over the last year, a basic predictive signal using weighted 24-hour trailing fees, improves how emissions track actual fees by almost 80%. That’s 80% more efficient results for token holders, 80% more consistent returns for LPs. ![Paired weekly charts of WETH/cbBTC fee share over 12 months: the current epoch voting signal misses realized fees by 3.1 percentage points on average, while a predictive signal tracks them within 0.7 percentage points — 78% more accurate.](/_astro/chart-efficiency.D9gYBQvc_gnSur.webp) But how will this impact sAERO token operators? Previously, veAERO and veVELO voters used a complete picture of the revenue each pool accumulated over the prior week to ensure their votes earned the highest possible return. Because everyone had a complete picture, everyone earned virtually identical rewards, and no one was incentivized to vote for future performance. Predictive Allocation can be expected to offer incentives for upside by betting on future growth, on top of the already high revenue accruing to allocators of more established and less volatile pools. Just like the Aerodrome Foundation with cbBTC, allocators betting on more accelerated growth and making successful predictions end up benefitting the entire system, along with themselves. In the case of cbBTC, we see that under Predictive Allocation, allocators that had a strong belief in the growth of cbBTC would have consistently outperformed an average allocator. The earliest cbBTC voters would have achieved 43% higher fees than expected based on past performance. As expected, over time that edge would have disappeared as growth became more predictable. In MetaDEX02, the epoch system incentivized voters to free-ride on the growth minded allocation strategies of others, such as the Aerodrome Foundation, by only focusing on pools’ past-performance. But with Predictive Allocation on Aero, bootstrapping a successful fee-producing asset will be rewarded because growth leads to more rewards for the entire protocol. ![Area chart of cumulative allocator profit over cbBTC’s first six months: allocators who predicted its growth beat the trailing-fee signal by 43% (1.43x) at launch, with the edge decaying toward 1.00x as growth became predictable.](/_astro/chart-cbbtc-outperformance.DJfaRfBX_Z12sMmV.webp) Predicting trends and flows in bluechip assets is a valuable activity. But for allocators that favor more upside, long-tail assets can offer more opportunities. Correctly predicting a window where a token takes flight could provide tremendous upside while the rest of the market adjusts. ![Cards of peak 48-hour allocator returns on long-tail tokens under a trailing signal: VVV 18.5x (signal 1.0% vs actual 18.5%), BNKR 8.5x (0.4% vs 3.4%), CLANKER 11.9x (1.3% vs 15.5%) — when fee spikes hit, early allocators win.](/_astro/chart-longtail.DtY5Vf2B_jtGuY.webp) ### Support tools Not all allocators will want to participate at this level of granularity. Fortunately, the design space for designing products and strategies that utilize Predictive Allocation is endless, especially for a new class of DeFi users: AI agents. For allocators looking for a hands-off approach, they’ll be able to configure management of their position through Autopilot (an upgrade to Relay). As time goes on, AI agents will craft strategies for themselves, but also will provide a wide variety of strategies to stakers. We are in the early stages of building an agent marketplace that will curate these opportunities for users to select their risk profile, but also what assets they want returned. ![Autopilot wordmark with the tagline “Institutional-grade security, fully onchain and non-custodial automation”, marked NEW.](/_astro/chart-support-tools.BRHpHmG3_Z1OwfHj.webp) One other key stakeholder group that will experience positive impacts from the upgrade to Aero and Predictive Allocation is the community of projects and token launchers incentivizing on Aero. Aero will give projects a whole host of new ways to achieve their intended outcomes. At launch, projects will be able to flexibly stream incentives in any token, either to stakers allocating rewards or to LPs directly. Under veVoting, liquidity payments became a key method for projects to incentivize deep liquidity, bootstrapping numerous successful projects. Like with epoch voting though, liquidity payments can be improved. Under MetaDEX02, tokens used as incentives unlocked and released to voters at a single point in time. For projects, this meant a large amount of new supply hit the market at once—not ideal. For voters, it was difficult to value liquidity payments prior to an unlock as both rewards and incentive value could shift dramatically after that supply hit the market. This meant emissions might be inefficiently allocated giving LPs potentially volatile signals. Streaming to predictive allocators allows projects to direct liquidity incentives to parties that stay aligned over time, while allocators receive a steady stream of information rather than having to bet on the uncertainty built into one-time events. LPs will also have a more predictable experience with the stream of AERO rewards updating gradually vs. oscillating between large, weekly shocks. We also anticipate that the option of streaming incentives will improve the Aero Launch model, by creating even more optionality for issuers, while also creating a compelling experience for other token launch products. More details to come on how Predictive Allocation will impact the token listing and gauge creation process. ### A Unified Economic Theory New innovations like Predictive Allocation are only valuable if they are a part of a sustainable economic system. MetaDEX03 will supercharge a lot of the same tools and concepts that made MetaDEX02 successful. We and our data partner Vending Machine will be publishing more information on the economic impact of the combined force of these changes in a forthcoming piece. The information below is a preview of this deeper dive. One key change in MetaDEX03 will be the removal of the anti-dilutive rebase for sAERO positions. During a rapid growth and bootstrapping phase, the rebase served a valuable role, providing new lockers with a measure of protection against dilution. However, in its more mature state, Aero will already be optimized to grow revenue per token over an extended time period without having to protect stakers from unproductive supply growth. In service of this goal, changes to the Momentum Fund (described below) will include potentially burning both liquid and locked supply rather than only having a mandate to buy and lock liquid supply. ## The AERO Fed and Emissions The current emissions rate for Aerodrome equates to annual dilution of roughly 11%. At the launch of Aero, Aerodrome will expand to absorb the Velodrome economy. The Aerodrome Foundation’s current plan is that emissions for Aero will continue Aerodrome’s annual dilution rate of roughly 11% of the AERO supply (Aerodrome+Velodrome). However, due to the anti-inflationary tools shared above (Predictive Allocation, Gauge Caps and Momentum Fund), this should be viewed as a base rate only, but realized inflation could be dramatically lower. The primary goal is to make the Aero launch successful, so these parameters could change if there is an extreme change to market conditions. In the coming weeks, in conjunction with another contributor to Aero, analytics and strategic data providers Vending Machine, we will publish a comprehensive framework for how the Fed will operate. Using quarterly analysis reports with space for emergency actions every month, the Fed will use a rules-based approach to recommend changes to emissions. As with MetaDEX02, the standard inflation curve will have a deflationary bias and a rigorous approach will be used to make any changes. More details on this approach will be provided soon. ## Expanding the Stack: The REV Engine As highlighted in November, Aero will introduce the REV Engine, a system that expands the revenue surface beyond trading fees and liquidity payments. The REV engine will internalize value streams that most DEXs are unable to tap into or leak to external parties. These are fees generated by services on top of the existing spot trading infrastructure that should belong to token operators subsidizing those services. In practice, different REV streams will produce value for ecosystem stakeholders in different ways. Aero is set to launch with two new revenue streams. - **Internal MEV Auctions:** Slipstream V3 intercepts MEV revenue at the protocol level, redirecting value that would otherwise flow to centralized sequencers and external bots back into the ecosystem. - **Bridge and Aggregator Fees:** Metaswaps are chain-agnostic swaps that route from an origin chain through the deepest liquidity on any chain and end up on the destination chain the user desires. Bridges, aggregators, and spot DEXs all take their cut of this activity when done separately. Aero will be able to unify this service into one seamless flow and offer it for a lower cost than utilizing each service independently. Fees net of fixed costs will be used to support the Aero token. More detailed information on Metaswaps will be released soon. Other near-term planned REV engine sources: - **Ancillary Services:** Revenue from veNFT marketplaces, auto-compounders, and liquidity management tools flows back into the system. - **Agent Marketplace:** The proliferation of protocols and services built on top of MetaDEX infrastructure will dramatically increase in the agentic economy. By meeting certain security requirements and by dedicating a certain percent of revenue to buyback and burns of AERO, people and agents can get listed on a curated marketplace. More details and estimates on the impact of each of these will be coming in future updates. Crucially, **100% of these non-swap revenue feeds accrue value to the ecosystem**. This transforms Aero from a single-product fee generator into a multi-product platform that can generate fee revenue from multiple uses of the same liquidity. --- ## Structural Supply Reduction: The Momentum Fund The final layer of Aero’s economic stack reinforces the token from the supply side. The Momentum Fund, the Aero Foundation’s flagship program, operates a rules-based sAERO position with three mandates: forward looking allocation to strategically important pools (like major token launches), extending allocation power to ecosystem builders, and deploying protocol revenue to **buy back and burn AERO.** Backtests on Aerodrome data indicate this strategy could have **removed over 100 million tokens from circulation** over a two-year period, while still building robust capital reserves. The net effect is a reduction in circulating supply, perfectly complementing MetaDEX03’s extra revenue streams. ## Developing the best experience for LPs Predictive Allocation will direct rewards in a forward-looking way to bootstrap new trading activity. But once pool volumes are consistently high, flexibility for LPs ensures the highest level of market dominance. Aero is designed to offer liquidity providers the best rewards onchain through two layers that give LPs unparalleled flexibility and capital efficiency. - **Layer 1: Trading Fees.** Liquidity providers can choose to earn a share of the trading fees flowing directly from the volume they enable. This represents a clear advantage over competing protocols that redirect a large portion of fees elsewhere. - **Layer 2: AERO Rewards.** LPs can also choose to earn AERO rewards, allocated by sAERO holders. This dual-layer model means LPs on Aero have the power to choose their preferred strategy: fee capture or optimized AERO rewards, tailoring their approach according to their preference and pool selection. **Additional revenue streams:** Aero also has two built-in mechanisms to provide more rewards to both classes of LPs. - **Dynamic Fees:** An updated dynamic fee module will increase fees during times of high volatility, generating more value to compensate LPs for risk. - **Internal MEV Auctions:** Aero will launch with a system to capture MEV and internalize it for the benefit of LPs. Both of these revenue streams benefit everyone. LPs that earn trading fees will receive fees from these additional sources directly. LPs earning AERO will benefit from the Predictive Allocation system as sAERO holders can more immediately allocate additional rewards to capture these revenue streams. --- ## Launch Details ### Token Distribution The Aerodrome and Velodrome communities will receive 100% of the initial AERO supply at launch. This means all positions—Team, Foundation and retail—will migrate the same way at the same rate. No dilution will occur beyond the migration of these existing positions. - **94.5%** to AERO and veAERO holders - **5.5%** to VELO and veVELO holders The distribution mirrors each protocol’s share of total value created in the year prior to the Aero announcement. Every holder who upgrades to AERO will maintain the same economic claim they hold today, unified under one token. Both liquid tokens and locked tokens will migrate at the same rate. sAERO positions will retain the correct number of tokens and lock times of their underlying veVELO (accounting for the exchange rate to AERO) and veAERO positions. Total supply of Aero will be calculated as following: - Aerodrome positions will migrate 1:1. - The total supply of Aero is then Aerodrome total supply at launch/.945. - The Velodrome supply will migrate into the newly created 5.5% of supply at the ratio of Velodrome total supply at launch into that fixed number of tokens. ### Migration Details Migration will occur during a single epoch. After epoch flip on both Aerodrome and Velodrome, migration for both liquid and locked positions to Aero will go live. At this point, the Aero migration supply will become fixed. While token holders should expect plenty of advance warning, there is no deadline to migrate. However, because Aerodrome and Velodrome are built on immutable smart contracts, veAERO and veVELO will continue to receive rebases. This means that after subsequent epoch flips on the old protocols, your individual migration ratio decreases in line with the new tokens you received from rebases. However, your ownership of the new protocol remains the same as it was during the first week. The exact math will be published closer to migration. Liquid tokens will always migrate at the same rate. While there is no deadline for migration, and migration will always be available via smart contract, at some point the front ends supporting Aerodrome and Velodrome will be retired. Because there are no epoch flips with Predictive Allocation, positions can migrate and earn at any time. We are actively working with CEXs to support the migration of the liquid tokens and will have more details closer to launch. In order to incentivize migration and provide the best chance for Aero to succeed, the Aerodrome Foundation will incentivize initial allocations and liquidity formation with something close to the amount of fees veAERO and veVELO voters would have received the last epoch on Aerodrome and Velodrome. These rewards will start streaming at 0:00:00 UTC of the Thursday following the last epoch of the old protocols. All pools with liquidity currently on Aerodrome and Velodrome will be available on their respective v3 chains on Aero, and LPs will have seamless migration available in the UI as well. However, because Aero will launch on net new chains, the initial liquidity payments from the Foundation will be strategically allocated across chains and pools that maximize Aero’s competitive opportunity at launch rather than being directly proportional to historical fees generated by pools on Aerodrome or Velodrome. During migration LPs will have the option to stake their positions if the pool is expected to earn early rewards or leave the positions unstaked to earn fees. If the pool will be supported by the opening week stream of rewards from the foundation, it will be clear in the UI. During the migration week, existing Aerodrome and Velodrome gauges and factories will be retired and the front ends will also support the migration to Aero. The Aerodrome Foundation will eventually reclaim the fees stuck on these retired gauges. Migrating veVELO and veAERO voters will receive a new stream of rewards on v3 gauges and the foundation will earn back the week one Aero rewards it provided, allowing for very little loss of value during the migration. veAERO and veVELO positions will be burned and entirely new positions will be minted. (This means new token and NFT IDs.) It also requires that all veAERO and veVELO positions will need to withdraw from any contracts they might be housed in to migrate. This includes internal products like relay vaults, but also any external contracts that have custody over veNFTs. ![Two circles sized proportionally by protocol revenue: Aerodrome at $260M and Velodrome at $15M — the relative value each community brings into the Aero migration.](/_astro/chart-migration.Bfhwc6l1_Z1ywbRQ.webp) ### Operational Hub Aero’s home base will be Base, the leading ETH L2 ecosystem that has grown alongside Aerodrome for over two years. With low costs, high throughput, and a thriving onchain economy, Base provides the foundation for Aero operators to scale across Ethereum. It also connects liquidity on Aero to millions of Coinbase users. ### Audits Aero will go through multiple rounds of audits beginning April 2026. ### Launch Timeline Depending on successful audits we believe Aero will launch in September, 2026. See [Aero is on the Horizon](/articles/aero-is-on-the-horizon/) for the latest timeline. ## More Reading [![New Terminology for a New Era](/images/articles/aero-terminology/banner.webp)](/articles/aero-terminology/) ### [New Terminology for a New Era](/articles/aero-terminology/) [Mar 29, 2026](/articles/aero-terminology/) [![Aero Launches Today: Get on Board](/images/articles/aero-launches-today/banner.webp)](/articles/aero-launches-today/) ### [Aero Launches Today: Get on Board](/articles/aero-launches-today/) [Oct 21, 2026](/articles/aero-launches-today/) [![The Aero Economy](/images/articles/the-aero-economy/banner.webp)](/articles/the-aero-economy/) ### [The Aero Economy](/articles/the-aero-economy/) [Oct 19, 2026](/articles/the-aero-economy/) --- # Aero is on the Horizon — Aero - URL: https://aero.xyz/articles/aero-is-on-the-horizon/ - Description: An update on the security and audit process and the overall timeline ahead of the Aero launch. ![Aero is on the Horizon](/images/articles/aero-is-on-the-horizon/banner.webp) July 16, 2026 # Aero is on the Horizon An update on what to expect, and when. ## TL;DR - Aero and MetaDEX03 are currently in audit, and the results to date have exceeded expectations: across three audit teams, no critical or high vulnerabilities have been found. - We recently identified a partner with Mythos-powered security review capabilities, and extended the audit timeline to leverage Mythos’s unique capabilities. - The final round of audits will run for \~1 additional month. - Following completion of formal audits, a three-week public audit contest will commence. - Aero’s core codebase is set to be published in batches starting at the beginning of August. - Aero is currently set to launch in September; a final launch target will be shared post-audit. - A lean “Aero-Lite” deployment featuring forward-compatible SlipstreamV3 pools will be available to launch on new chains prior to the full protocol launch. - The unified liquidity layer for all of Ethereum is coming; Aero is poised to launch as secure, institutional-grade market infrastructure on day one. ## On the runway: where we are today Aero has been in development since 2025 and in security audit since June. A full-time team of security researchers from ChainSecurity and Sherlock—including four of the ten highest-earning security researchers in the industry—has participated. Riley Holterhus, one of the world’s top auditors has led all efforts. Reviews to date have been extremely productive. A concurrent review process including multiple teams is already resulting in a cleaner, simpler, and more optimized code base. So far, we’ve not identified any critical or high vulnerabilities. ## Updates to the audit timeline As launch nears, we’ve made two new decisions that impact the timeline. Both will help ensure Aero enters the market as truly institutional-grade and secure liquidity infrastructure: 1. **We added a Mythos-powered security review.** An undisclosed partner with Mythos access offered to support the Aero launch, and we were excited to accept and extend the timeline. 2. **We’ve decided to expand the public audit contest and treat it as its own discrete and critical phase ahead of launch. The prize pot will be set at $400k.** This Sherlock-run contest is planned to run for three full weeks starting only after all formal audits and the Mythos review are complete. ## Commence the countdown: an update on timing The anticipated timeline to launch is now as follows: - Codebase with full/updated specifications begins public rollout: August 3 - Final audit (round 3) + fixes: Through August 21 - Public audit contest: August 24 - September 11 We expect the full Aero to launch in September following the contest results. Aero Lite may deploy earlier to chains that Aerodrome or Velodrome do not support today. A full and updated overview of the Aero feature set will be published ahead of launch. ## All systems go: Aero is coming The onchain economy is growing. As it does—and as blockspace becomes increasingly commoditized—a higher share of value will flow to the site of the bulk of onchain economic activity: the liquidity layer. The venue that captures that growth won’t be limited by off-chain order books, models that can only quote existing markets, or by legacy thinking that caps the value of liquidity at its current-period swap fees. It will be a venue that understands the long-term compounding value of liquidity (and pays for it accordingly). One that provides open infrastructure for experimentation, alongside a market discovery mechanism that allows capital to find its best use, and that rewards allocators commensurate with the risk they take on and the service they provide. A venue that wins liquidity by setting a new market price based on its true value, increases the revenue surface that liquidity enables, and then flows value back to the sAERO holders who make it possible. One that is open to everyone and owned by anyone, and that gives all participants a greater stake in the new economy. For this potential to be realized, the audit and security process must be taken as seriously as the opportunity in front of us. Aero is coming. Get on board. ## More Reading [![The AER Engine and the Aero Economy](/images/articles/the-aer-engine-and-the-aero-economy/banner.webp)](/articles/the-aer-engine-and-the-aero-economy/) ### [The AER Engine and the Aero Economy](/articles/the-aer-engine-and-the-aero-economy/) [Jun 7, 2026](/articles/the-aer-engine-and-the-aero-economy/) [![The AER Engine: FAQ](/images/articles/aero-the-aer-engine-faq/banner.webp)](/articles/aero-the-aer-engine-faq/) ### [The AER Engine: FAQ](/articles/aero-the-aer-engine-faq/) [Jun 6, 2026](/articles/aero-the-aer-engine-faq/) [![Aero + Predictive Allocation FAQ](/images/articles/aero-predictive-allocation-faq/banner.webp)](/articles/aero-predictive-allocation-faq/) ### [Aero + Predictive Allocation FAQ](/articles/aero-predictive-allocation-faq/) [May 8, 2026](/articles/aero-predictive-allocation-faq/) --- # Aero Launch Update: All Systems Go — Aero - URL: https://aero.xyz/articles/aero-launch-update-all-systems-go/ - Description: Aero launches October 21, 2026. Robinhood Chain and Arbitrum join Base, Ethereum Mainnet, Arc, OP Mainnet, and Ink on the final list of seven launch chains. ![Aero Launch Update: All Systems Go](/images/articles/aero-launch-update-all-systems-go/banner.webp) September 25, 2026 # Aero Launch Update: All Systems Go ## TL;DR - **Aero launches October 21, 2026** - Two new chains have been added to the launch list: **Robinhood Chain** and **Arbitrum**. - They join **Base, Ethereum Mainnet, Arc, OP Mainnet,** and **Ink**. - More information is shared below with additional details to come. ## What is Aero Aero will be the unified liquidity layer for all of Ethereum: one exchange built to power the future of onchain finance. By connecting liquidity across the network, incentivizing anticipatory market formation, and aligning economic participants behind a single token, Aero is designed to be the best place to trade, earn, and launch onchain. **Trade.** [Metaswaps](/features/metaswaps/) will allow users to swap tokens across supported chains, powered by onchain liquidity rather than off-chain counterparties. **Earn.** LPs will deposit into [Slipstream](/features/slipstream/) concentrated liquidity pools, with Dynamic Fees that adjust to market conditions and MEV Capture on supported L2s. sAERO holders will direct AERO Rewards to pools across the liquidity network using [Predictive Allocation](/features/predictive-allocation/) and earning a share of Exchange Revenue as it accrues. **Launch.** Anyone will be able to create a market permissionlessly. For eligible liquidity pools, incentives can be deposited to efficiently attract LP rewards that deepen liquidity even ahead of demand. **Under the hood.** The [AER Engine](/articles/the-aer-engine-and-the-aero-economy/) will optimize the token economy, calculating AERO Rewards in dollar value and dynamically capping the rate of rewards per-pool to track projected revenue, allowing LPs to earn more while also controlling inflation. ![Aero features: AER Engine, REV Engine, Slipstream V3, Predictive Allocation, Autopilot, Metaswaps, and Dynamic Fees.](/_astro/launch-features.CJ6S6s3G_2pOSAK.webp) ## Building in the open skies Ten months ago, we announced that Aerodrome and Velodrome would merge to form Aero. Since then, we’ve added entirely new primitives like [Predictive Allocation](/features/predictive-allocation/), strengthened the security audit, including a Mythos-powered review, and [launched Aero Lite on Arc](/articles/aero-lite-is-live-on-arc/). Now, the public audit contest is complete, final fixes are being merged, the full Aero app will soon enter final QA, and coordination with ecosystem partners is underway. We’re deeply grateful to the Aerodrome and Velodrome communities for their patience and continued support. Today, we’re excited to announce that **Aero launches on October 21, 2026.** ![Take off: October 21, 2026 at 8:00 PM EDT (October 22, 00:00 UTC).](/_astro/launch-take-off.DkhvnjRz_7Sciy.webp) ## Day-one chains Aero is built to win onchain spot trading across the EVM. Today, the chains Aerodrome and Velodrome serve account for about 17% of EVM spot trading volume. This launch is set to roughly triple that. At launch, Aero will be able to grow in two ways at once: by winning a greater share of the current market, and by expanding with the growth of the overall onchain economy as tokenization brings new assets onchain. The list of launch chains is now final. Aero will go live on **Base, Ethereum Mainnet, OP Mainnet, Arc, and Ink**, and two major chains will also join the network: **Robinhood Chain and Arbitrum.** ![Launch chains: Base, Ethereum Mainnet, Robinhood, Arc, OP Mainnet, Arbitrum, and Ink.](/_astro/launch-chains.BNG9mPgs_ZL1Ei2.webp) Robinhood Chain brings Aero into a fast growing ecosystem and new community of participants. Arbitrum brings one of the deepest DeFi ecosystems in Ethereum. All seven launch chains get a full Aero deployment. AERO Rewards will stream across all seven, directed by sAERO holders using [Predictive Allocation](/features/predictive-allocation/). ###### What this means: - Traders will be able to seamlessly swap assets across all chains that support [Metaswaps](/features/metaswaps/). - Issuers will be able to deploy liquidity to a single pool on one network and unlock exposure across the ecosystem. - sAERO holders will be able to direct rewards across the network, earning a share of revenue from an expanding surface. ## What comes next In the weeks leading to launch, we’ll be sharing more information and resources as they become available: - A launch week timeline - Guidance for LPs, liquid tokenholders, and veNFT holders - Additional information on the [Aero economic system](/economics/) - Builder resources ![Aero is coming. Get on board.](/_astro/launch-get-on-board.CLRa2TmA_aJDq.webp) ## More Reading [![Aero Lite is Live on Arc](/images/articles/aero-lite-is-live-on-arc/banner.webp)](/articles/aero-lite-is-live-on-arc/) ### [Aero Lite is Live on Arc](/articles/aero-lite-is-live-on-arc/) [Sep 16, 2026](/articles/aero-lite-is-live-on-arc/) [![Coinbase Tokenized Stocks Launch on Aerodrome](/images/articles/coinbase-tokenized-stocks-launch-on-aerodrome/banner.webp)](/articles/coinbase-tokenized-stocks-launch-on-aerodrome/) ### [Coinbase Tokenized Stocks Launch on Aerodrome](/articles/coinbase-tokenized-stocks-launch-on-aerodrome/) [Aug 24, 2026](/articles/coinbase-tokenized-stocks-launch-on-aerodrome/) [![Aero is on the Horizon](/images/articles/aero-is-on-the-horizon/banner.webp)](/articles/aero-is-on-the-horizon/) ### [Aero is on the Horizon](/articles/aero-is-on-the-horizon/) [Jul 16, 2026](/articles/aero-is-on-the-horizon/) --- # Aero Launches Today: Get on Board — Aero - URL: https://aero.xyz/articles/aero-launches-today/ - Description: On October 21, Aero launches across seven networks: Base, Robinhood Chain, Ethereum Mainnet, OP Mainnet, Arc, Ink, and Arbitrum. Built on MetaDEX03, the new spot exchange is built around maximum value distribution, introducing market-aware liquidity compensation that surges with demand, and Predictive Allocation: a liquidity coordination mechanism that can reward foresight with increased revenue share. ![Aero Launches Today: Get on Board](/images/articles/aero-launches-today/banner.webp) October 21, 2026 # Aero Launches Today: Get on Board _Aero launches today across seven networks, built to win onchain flow by raising the market rate for liquidity and directing 100% of revenue to an open network of participants._ ## The onchain era is here. Aero is built to power it. Tokenization and the wider adoption of onchain technology is accelerating. More and more, existing markets are coming onchain, and new markets continue to form and innovate. Soon, the world will not distinguish between the “onchain economy” and the broader economy. It will simply be _the_ _economy, onchain_. Today, Aero launches as the unified liquidity layer built to power trading and value exchange in this new era, coordinating onchain markets in a single system and behind one token: AERO. This new platform forms part of the next-generation infrastructure that will bring the world onchain. The unification of Aerodrome and Velodrome—two of the most successful exchanges on Ethereum L2s—Aero will continue to function as participant-owned market infrastructure, designed to raise the compensation rate for liquidity providers while directing 100% of exchange revenue from pools to sAERO holders who direct the flow of AERO rewards. The new Aero launches without venture backing or a token sale: the entire supply of new AERO goes to existing AERO and VELO holders, with no dilution to team or VCs. ## Why Aero exists Every economy is built in layers. At the foundation are the frameworks and rules that govern activity. Directly atop that foundation sits the liquidity layer—the infrastructure that makes it possible for economic participants to easily exchange value. Onchain, this second layer is as essential as the blockchains themselves, because liquidity and value exchange is required for other economic activities to occur. It’s also a big business. Onchain spot exchanges generated $3.1 billion in fees over the last 12 months, second only to stablecoins and more than derivatives, lending, or the chains themselves. Aero is designed to own that opportunity and distribute that value, expanding participation and rewarding each participant in proportion to their contribution. It is built on the belief that propelled Aerodrome and Velodrome to win in their respective ecosystems: in an onchain, increasingly agentic era, the only durable moat is maximum value distribution to users. ## The model: pay liquidity providers more Every exchange is a three-sided economy, balancing the interests of three groups: traders, liquidity providers, and token holders. Aero is designed to align the incentives of all three and serve each of them fully, and it starts by paying LPs more. This is because for an exchange to function at all, it needs liquidity. And for an exchange to win, it needs deep liquidity that increases efficiency and opens the door to new value and revenue streams over time. Inspired by this, Aero is designed to sustainably compensate liquidity providers more than the competition, and its model rests on a premise that runs against intuitions forged by the business design of legacy exchanges: _The value of liquidity should not just be measured by the trades it enables in this block, or the next, but also by its contribution to the long-term earning power of the network it helps make possible._ Block by block trading fees is one expression of that value. It is not the only one. Take one other example: At launch, Aero earns revenue from liquidity and launch payments, just as Aerodrome and Velodrome have for years. Issuers, protocols, and ecosystems can make these payments to encourage token operators to direct liquidity rewards toward markets they want to support for any reason. Maybe an issuer needs a functioning market before trading activity generates fees, or an ecosystem can want an asset to remain accessible across all conditions. No matter the motivation, these participants have a reason to pay for liquidity beyond the fees generated by the trades currently using it, and liquidity payments make that demand visible as revenue. As an exchange grows, the same liquidity network can support additional products, execution services and revenue streams. And liquidity itself is a critical input into that growing network business. By understanding this, and building an economic system around it, Aero can effectively raise the market rate for liquidity by compensating LPs for the full value they enable over time. To accomplish this, Aero needs a way for target LP compensation rates to break the “point-in-time fees” limit that most exchanges are structurally bound to. The solution: rewarding LPs with a token that is itself a proportional claim on the future revenue growth of the whole network. AERO, when staked as sAERO, is that claim. Now and in the future, 100% of exchange revenue accrues to the token or its holders. Every revenue stream at launch streams directly to sAERO holders in real time. When an LP chooses to receive AERO rewards, the trading fees from that position become exchange revenue, which is distributed to the sAERO holders who allocate the system’s liquidity rewards to that market. Participation on both sides is open: anyone can deposit liquidity to earn by facilitating exchange activity. Anyone can stake AERO and allocate rewards to earn exchange revenue. sAERO holders looking for a hands-off approach can configure management of their position through Autopilot, which automates the allocation process and can compound or convert earned exchange revenue at a regular cadence. Paying LPs for the true value they provide sets off a flywheel: - Better LP compensation attracts deeper liquidity. - Deeper liquidity attracts more flow. - More flow generates more revenue for the token operators coordinating liquidity. - Token operators direct more rewards to the LPs who earn them. ## A model that already won Aerodrome and Velodrome launched without the two things the industry says you need to win: venture backing and a first-mover advantage. What they had was a model that worked better for participants. Together they have won the majority of volumes on Base and OP Mainnet combined, and distributed more than $580 million to the people who stake their tokens. That is more revenue distributed to holders than any DEX, on any chain, ever. And they did it operating on networks that represent a mere \~17% of EVM spot trading volume. The model is also built to win new high-value asset classes as they come onchain. Aerodrome, even on the previous version of the MetaDEX, has already proven this power across three of the largest markets: - **FX -** Currencies are the most traded market in the world, at about $9.6 trillion a day. In the first half of 2026, Aerodrome did more onchain FX trading than every other DEX combined. - **Bitcoin -** Bitcoin is the largest crypto asset. In the third quarter of 2026, Aerodrome handled more bitcoin-dollar trading than any other DEX. - **Tokenized stocks -** Listed stocks worldwide are worth about $150 trillion, and only about $3 billion has been tokenized so far. On Ethereum and its layer-2 networks, Aerodrome’s share of tokenized-stock DEX trading went from single digits in August to more than half on October 10. That is what the model did on Base and OP Mainnet. Aero now brings it to seven networks as one exchange, including Ethereum Mainnet, Arbitrum, Robinhood Chain, Ink, and Arc. ## What’s new on Aero Aero keeps what helped its predecessors win, and rebuilds the rest. Older ve(3,3) exchanges were built for a simpler market: backward-looking, periodic and static. Aero is optimized for the new era: predictive, continuous and intelligent. The result is the familiar flywheel rebuilt to spin faster and more efficiently. ### Better LP compensation Paying LPs competitively is a question of _when_ as well as _how much._ When volatility rises and prices dislocate, the risk of providing liquidity grows precisely when demand for it is greatest. Aero is built to pay more in those moments. AERO rewards are now calculated in dollars, not tokens, and each pool’s rewards rates can be capped to track a multiplier of projected revenue, recalibrated frequently instead of once a week. Critically: as a pool’s activity rises, so can a cap, meaning its max rewards rate can rise with it. This market-responsive mechanism may allow AERO-earning LPs to earn more when it matters most. To maintain a sustainable token economy, AERO rewards held back by a cap are never minted at all. For LPs who choose to earn fees instead, [Slipstream V3](/features/slipstream/), Aero’s latest concentrated-liquidity AMM, includes upgraded dynamic fees that rise when markets move fast, and on supported layer-2 networks it can recapture MEV that would otherwise leak. ### Deeper liquidity Aerodrome and Velodrome will be one exchange, with one token and liquidity network that spans seven chains. A pool on one chain can fill orders from traders from across the network. This means liquidity can stay deep and capital-efficient in fewer pools instead of being fragmented across chains. ### More flow Onchain flow is no longer a synonym for retail trading. It includes institutional settlement, professional arbitrage, agentic trades, liquidations and more, and Aero is built for all of it. [Metaswaps](/features/metaswaps/) let traders bridge, route and swap in a single transaction, filled by Aero’s own onchain liquidity rather than off-chain counterparties. Aero’s native onchain data contracts let AI agents, aggregators and wallets integrate and execute directly, without the need for expensive custom development. Programmable fee rebates will let desks, aggregators and routers earn discounts on public, auditable terms, helping Aero win more of the flow that moves through them. ### Revenue for token operators Distributing value is half the job. The other half is capturing it. Aero pairs the people who bear market risk, LPs, with the people who want exposure to it: token operators, who earn more when markets move. When an LP takes AERO rewards, the dynamic fees and MEV capture on that position become exchange revenue, so the upgrades that pay fee-taking LPs more can also earn more for sAERO holders. Over time, Aero can also add new revenue streams, and every one will accrue value to the token or its holders. Beyond exchange revenue, the Momentum Fund, an Aero Foundation program, has a mandate to strengthen and stabilize the AERO token economy through contributor grants, strategic allocation to new markets and market-aware token buybacks and burns. ![Predictive Allocation: real-time capital allocation, live revenue distribution](/_astro/predictive-allocation.Cecj2Uih_28P6k9.webp) ### Rewarding proof of foresight with Predictive Allocation Most DEXs leave liquidity to organize itself. Aerodrome and Velodrome gave that job to an open network of token operators. Aero keeps the network but makes allocation continuous and pays operators for getting it right. AMMs answered what the price of an asset should be. With [Predictive Allocation](/features/predictive-allocation/), Aero can help answer where capital needs to go. Token operators choose which markets the exchange should support with AERO rewards, LPs follow, and in return the operators earn a proportional share of the revenue those markets produce while their allocation is live. Because this process is continuous and real-time, operators who back a market early, correctly believing it will be productive, can earn the largest share of revenue when it accrues. The system doesn’t simply reward participation. It rewards being right. And because the prediction isn’t just a bet, but an allocation, it can be the very thing that makes the desired outcome more likely, even moving liquidity ahead of demand. ![Take off: October 21, 2026, 8:00 PM EDT (October 22, 00:00 UTC)](/_astro/take-off.Czn4Amn-_Z5gdiU.webp) ## Get on board Aero launches October 21 at 8:00 PM EDT (October 22, 00:00 UTC). AERO and VELO upgrade to the new AERO, and veAERO and veVELO positions upgrade to sAERO. The entire upgraded supply goes to existing AERO, veAERO, VELO and veVELO holders, split 94.5% to the Aerodrome community and 5.5% to the Velodrome community, matching each protocol’s share of combined revenue in the 52 weeks before Aero was announced. - Upgrade tokens and migrate liquidity at [aerodrome.finance](https://aerodrome.finance) and [velodrome.finance](https://velodrome.finance). - Stake, allocate and find new pools at [app.aero.xyz](https://app.aero.xyz). - Full instructions are in the Aero Upgrade Hub at [aero.xyz/aero-upgrade](/aero-upgrade/). Aero’s contracts have been audited by [Sherlock](https://www.sherlock.xyz) and [ChainSecurity](https://www.chainsecurity.com) across five separate engagements, followed by a three-week public audit contest on Sherlock. A Sherlock bug bounty goes live on launch day. ## More Reading [![The Aero Economy](/images/articles/the-aero-economy/banner.webp)](/articles/the-aero-economy/) ### [The Aero Economy](/articles/the-aero-economy/) [Oct 19, 2026](/articles/the-aero-economy/) [![Aero Launch Update: All Systems Go](/images/articles/aero-launch-update-all-systems-go/banner.webp)](/articles/aero-launch-update-all-systems-go/) ### [Aero Launch Update: All Systems Go](/articles/aero-launch-update-all-systems-go/) [Sep 25, 2026](/articles/aero-launch-update-all-systems-go/) [![Aero Lite is Live on Arc](/images/articles/aero-lite-is-live-on-arc/banner.webp)](/articles/aero-lite-is-live-on-arc/) ### [Aero Lite is Live on Arc](/articles/aero-lite-is-live-on-arc/) [Sep 16, 2026](/articles/aero-lite-is-live-on-arc/) --- # Aero Lite is Live on Arc — Aero - URL: https://aero.xyz/articles/aero-lite-is-live-on-arc/ - Description: Aero Lite is live on Arc, bringing essential liquidity infrastructure to the chain ahead of the full launch. ![Aero Lite is Live on Arc](/images/articles/aero-lite-is-live-on-arc/banner.webp) September 16, 2026 # Aero Lite is Live on Arc ## TL;DR - Starting today, Aero Lite is live on Arc, the Layer-1 blockchain purpose-built for stablecoin-native financial applications - This advanced deployment is designed to provide essential liquidity infrastructure for the chain starting on day one - Pools are already live and liquidity providers can immediately deposit to earn fees + boosted rewards on pairs critical to the Arc ecosystem - When Aero fully launches, the Lite deployment on Arc will upgrade to the complete feature set and plug into Aero’s full economic system - Aero Lite will continue to evolve and serve as a nimble lightweight version of the protocol that can be strategically deployed to new ecosystems ## Essential liquidity infrastructure, live on day one Aero has deployed essential liquidity infrastructure to Arc, supporting the chain with a simple swap UI and [Slipstream](/features/slipstream/) pools for critical pairs on day one. This advanced deployment comes ahead of the full launch of Aero and includes a lightweight feature set plus the world’s first look at Aero’s new UI at [app.aero.xyz](https://app.aero.xyz). ### Aero on Arc delivers essential liquidity infrastructure for traders, market makers, token issuers, and builders alike: - **Traders** can swap tokens 24/7 across deep and efficient liquidity pools - **Market makers** can swap, rebalance, and deposit to earn, all in conjunction with Arc’s own StableFX - **Token issuers** will be able to launch, bootstrap, and scale liquid markets for any tokenized asset onchain - **Builders** can integrate a composable liquidity network to power a wide range of DeFi applications (SDK coming soon) ## Lean features for a Lite launch Aero Lite on Arc debuts with the following feature set: - New Slipstream pools live on day one - Fee rewards + boosts for LPs - Simple trading UI To support builders and integrators, the Aero SDK is set to go live soon and will be optimized for agents and developers alike. When the full Aero protocol launches, the Arc deployment will upgrade to include the full launch feature set and economic system, including: - AERO Rewards streaming to pools, directed by sAERO holders and optimized with Gauge Caps and [Predictive Allocation](/features/predictive-allocation/) - Unified liquidity and cross-chain swaps powered by [Metaswaps](/features/metaswaps/) and the all-new MetaRouter - Programmable fee rebates and infrastructural updates designed for institutions and integrators The [Aero codebase](https://github.com/dromos-labs/metadex-public) has been audited by Sherlock and ChainSecurity. The public audit contest is nearly complete. ## The liquidity engine for onchain FX and beyond **Onchain FX is powered by Aerodrome:** - In H1 2026, Aerodrome [generated more FX volume on Base than every other DEX across every chain, combined](https://blockworks.com/analytics/aerodrome/aerodrome-competitive-landscape) - Aerodrome holds <1% of EURC liquidity and handles most of its onchain volume, with over $10B in EURC traded to date - Aerodrome’s EURC/USDC pool is the largest FX pool onchain by volume, providing hyper competitive rates With this launch, Aero Lite will bring this proven technology and established playbook to Arc and its new set of users, builders, and institutions. ### An open marketplace for market formation Beyond FX pairs, Aero’s aligned economic system, leading-edge technology, and built-in incentive marketplace will make it the most powerful venue for launching, bootstrapping, and growing liquid markets for any asset type. Aerodrome has already shown the system’s ability to win across markets, from hosting the top-volume pools for bluechips like Bitcoin to becoming the home for equities onchain with the recent launch of [Coinbase Tokenized Stocks](/articles/coinbase-tokenized-stocks-launch-on-aerodrome/) with day-one liquidity live on Aerodrome. With the launch of Aero, we’ll also see the debut of [Predictive Allocation](/features/predictive-allocation/), a new onchain primitive that promises to reshape the way markets form onchain into the future. ### A unified liquidity layer When Aero launches, it will unify liquidity across all connected chains, including Arc and Ethereum Mainnet. Pools on Aero will be connected via the new MetaRouter, so cross-chain swaps will be powered by onchain liquidity, not off-chain counterparties. This novel approach will mean traders can swap assets across chains cheaply and from a single UI, while projects and issuers can manage liquidity on one chain and capture flow from across the network. Institutions and builders will be able to integrate the entire liquidity network using a simple SDK powered by onchain data. ### A blueprint for expansion This advanced deployment on Arc is just the beginning. Even after Aero launches, a lean pool-centric development with a powerful but lightweight feature set will be available to deploy to ecosystems in advance of a full expansion. This option will help Aero flexibly explore new environments and test new strategies without the complication or implications of deploying the full weight of its economic system. ### Open to everyone. Owned by anyone. The full Aero launch is nearly here. Get on board. [Open App](https://app.aero.xyz) [Get in touch](https://t.me/AeroTechSupportBot) ## More Reading [![Coinbase Tokenized Stocks Launch on Aerodrome](/images/articles/coinbase-tokenized-stocks-launch-on-aerodrome/banner.webp)](/articles/coinbase-tokenized-stocks-launch-on-aerodrome/) ### [Coinbase Tokenized Stocks Launch on Aerodrome](/articles/coinbase-tokenized-stocks-launch-on-aerodrome/) [Aug 24, 2026](/articles/coinbase-tokenized-stocks-launch-on-aerodrome/) [![Aero is on the Horizon](/images/articles/aero-is-on-the-horizon/banner.webp)](/articles/aero-is-on-the-horizon/) ### [Aero is on the Horizon](/articles/aero-is-on-the-horizon/) [Jul 16, 2026](/articles/aero-is-on-the-horizon/) [![The AER Engine and the Aero Economy](/images/articles/the-aer-engine-and-the-aero-economy/banner.webp)](/articles/the-aer-engine-and-the-aero-economy/) ### [The AER Engine and the Aero Economy](/articles/the-aer-engine-and-the-aero-economy/) [Jun 7, 2026](/articles/the-aer-engine-and-the-aero-economy/) --- # Aero + Predictive Allocation FAQ — Aero - URL: https://aero.xyz/articles/aero-predictive-allocation-faq/ - Description: Basic information and updated FAQs related to Aero, Predictive Allocation, sAERO staking, and the migration ahead. ![Aero + Predictive Allocation FAQ](/images/articles/aero-predictive-allocation-faq/banner.webp) May 8, 2026 # Aero + Predictive Allocation FAQ ## Aero ### What is Aero? Aero will be the unified liquidity layer for all of Ethereum, combining Aerodrome and Velodrome into a single protocol built on MetaDEX03, the next-generation DEX operating system from Dromos Labs. ### What is the relationship between Aero, Aerodrome, and Velodrome? Aerodrome and Velodrome are separate protocols built on MetaDEX02. Aero will bring them together under one token, one governance system, and one economic framework. ### Will Aero be a new exchange? Yes. Aero will be a new protocol, the result of an upcoming merger between Aerodrome and Velodrome. ### When will Aero launch? Aero is currently set to launch in September 2026, following the completion of formal audits and a three-week public audit contest. A final launch target will be shared post-audit. See [Aero is on the Horizon](/articles/aero-is-on-the-horizon/) for the full timeline. ## Tokens and Terminology ### Will Aero have its own token? Yes. Its ticker will be AERO. All existing AERO and VELO tokens will need to be upgraded to the new token. ### Why am I seeing new words, like “staking” and “allocating”? With the launch of Aero, the internal terminology of the system will be updated. The goal is to make the language more accessible to a broader audience and retire language with inaccurate associations or that no longer reflects how the system works. The two biggest changes: Aero uses “staking” where Aerodrome used “locking,” and “allocating” where Aerodrome used “voting.” ### Will the mechanics or experience of staking be different than locking/vote-escrowing? No. The difference is in terminology only. Each stake will have a set term, determined by the staker at the time of staking. You will not be able to “unstake” before that term is up. ### Can sAERO positions be traded or transferred? Yes. sAERO positions can be traded and transferred. Currently, there is no plan to make it possible for holders to simply split sAERO positions. ### What is the new terminology and what does each term mean? For more detail, see [New Terminology for a New Era](/articles/aero-terminology/). ## Predictive Allocation ### What is Predictive Allocation? Predictive Allocation is a new onchain primitive developed by Dromos Labs: a decentralized mechanism for the concurrent, continuous, and cross-chain allocation of rewards and distribution of revenue. It will power Aero, replacing Aerodrome and Velodrome’s weekly voting system with a more real-time, market-driven process. ### How will it work? Instead of token operators voting once weekly to direct the following week’s rewards, they will allocate AERO rewards that stream to pools in real time. In return, they earn exchange revenue as it accrues live. Both AERO rewards and exchange revenue will stream concurrently and continuously. ### Why change from the current system? While Aerodrome and Velodrome’s current economic system is more efficient and performant than self-organizing liquidity marketplaces, operating on a weekly schedule creates two areas for further optimization: - **Efficiency:** Because voters currently earn historical swap fee revenue while directing the following week’s AERO rewards, AERO can stream to pools that are no longer productive or valuable to the system. This is because voters seeking to maximize returns allocate to pools that have been previously productive, and they may not be the same pools that will be productive in the future. - **Opportunity cost:** Because voting happens once weekly, the current system can be slow to respond to emerging pools and tokens, which must wait for a new vote before they can begin receiving emissions. ### How does Predictive Allocation optimize these two areas? Real-time revenue distribution combined with more frequent opportunities for reallocation means significantly less AERO streaming to unproductive pools. And because allocations can be shifted throughout the week, a pool that starts generating value can begin receiving AERO rewards much sooner than under the current system. ### Why is it called “Predictive” Allocation? A switch to real-time distribution means the allocation of AERO rewards will no longer be based on historical data but on predictions about where the market is moving next. Because exchange revenue accruing to a pool is only earned by token operators actively allocating to it, an early bet can earn more as operators compete to predict where liquidity will be most productive in the future. Consequently, the liquidity formed by these market forces will be built in anticipation of demand. ### Will Aero have Gauge Caps, and what are they? Yes. Gauge Caps will help prevent over-allocation to pools. They are designed to prevent AERO rewards from going to a pool unless a set level of fees actually materialize. The cap for each pool will be able to be set independently, ensuring maximum flexibility and competitiveness. ### How often will people be able to shift their allocations? At launch, the current plan is for operators to wait a minimum of 48 hours before being able to change their allocations, and to reduce that window over time. The 48hr window will be specific to each sAERO position. ### If I don’t actively reallocate, does my existing allocation persist? Yes. ### What if the new system sounds too complicated? Token operators who don’t want to actively manage allocations can still benefit from their sAERO by allocating to consistently productive pools. Aero will also launch with Autopilot: a configurable, automated allocation manager. ### What is Autopilot? Autopilot is the name of all automation features on Aero. For LPs, it will offer automated liquidity management for deposits in Slipstream pools. For stakers, it will offer simple configuration options to automate the allocation process. In addition to being able to compound earned revenue back into a position, Autopilot will offer new options including converting rewards directly to USDC. ### Is Autopilot a rebrand of Relay? Yes, it combines what is now Relay with ALM, and adds additional features and options. ### What is a Production Market? Any market where participants compete to allocate a shared economic resource, seeking to maximize the productivity of their own allocations. Each allocation directly funds economic activity, which means the prediction and the investment are the same act. Participants earn based on how productive that activity turns out to be, which means accurate allocation is rewarded and inaccurate allocation is not. The more participants compete, the more efficiently the shared resource is directed toward its highest-value use. This is a new category of system coined in the context of Predictive Allocation. Aero will be the first exchange featuring Production Markets. ### How will Predictive Allocation impact projects that want to incentivize liquidity? Projects will be able to flexibly stream incentives, either to stakers allocating rewards or to LPs. This solves a key problem from the epoch system, where voters received tokens in bulk at a single point in time. ## Emissions and the AERO Fed ### Will there be any element of community voting related to the emissions rate? With Gauge Caps, Predictive Allocation, and the possibility of integrating AI tooling and a rules-based architecture into AERO Fed decision-making, the economics of the forthcoming Aero will be optimized for protocol sustainability. As a result, voter participation may not be required or activated. ### Will sAERO include a rebase? No. Rebase is going away. ## New Revenue Streams: The REV Engine ### What new revenue streams will Aero launch with? Aero is set to launch with two new sources of revenue: - **Internal MEV Auctions** - **Metaswaps (Bridge + Aggregator Fees)** Other near-term planned sources include fee revenue from a veNFT marketplace, auto-compounder, and Autopilot. ### Who benefits from these new revenue streams? Fees captured as exchange revenue will benefit sAERO holders, either through distribution or another mechanism. Some fees, e.g. MEV auction fees from LPs earning fees, will go directly to LPs, reducing the need for AERO Rewards. ## Migration ### Will I need to do something with my current tokens? Yes. All AERO, veAERO, VELO, and veVELO will need to be upgraded to the new AERO and sAERO tokens. ### Who receives the initial AERO supply at launch? 100% of the initial AERO supply goes to the existing Aerodrome and Velodrome communities. ### Will veAERO NFT IDs remain the same after migration, or will new IDs be minted? New token and NFT IDs will be minted. All veAERO and veVELO positions must be withdrawn and any pending rewards must be claimed from any contracts they are housed in before migrating. ### Will centralized exchanges handle the upgrade automatically, or do I need to withdraw to a wallet first? The team is actively working with CEXs to support the migration of liquid tokens. More details will be provided closer to launch. ### What will happen to the old Aerodrome and Velodrome protocols after Aero launches? The front ends of both protocols will be deprecated at a later date. Contracts are immutable and will continue to exist onchain, but gauges and factories will be retired. ## More Reading [![Aero Dynamics: The Economics of Ethereum’s Unified Liquidity Layer](/images/articles/aero-economic-case/banner.webp)](/articles/aero-economic-case/) ### [Aero Dynamics: The Economics of Ethereum’s Unified Liquidity Layer](/articles/aero-economic-case/) [Mar 30, 2026](/articles/aero-economic-case/) [![New Terminology for a New Era](/images/articles/aero-terminology/banner.webp)](/articles/aero-terminology/) ### [New Terminology for a New Era](/articles/aero-terminology/) [Mar 29, 2026](/articles/aero-terminology/) [![Aero Launches Today: Get on Board](/images/articles/aero-launches-today/banner.webp)](/articles/aero-launches-today/) ### [Aero Launches Today: Get on Board](/articles/aero-launches-today/) [Oct 21, 2026](/articles/aero-launches-today/) --- # New Terminology for a New Era — Aero - URL: https://aero.xyz/articles/aero-terminology/ - Description: An updated glossary for Aero, including definitions for "staking," "allocating," "sAERO," and more. ![New Terminology for a New Era](/images/articles/aero-terminology/banner.webp) March 29, 2026 # New Terminology for a New Era With the launch of Aero, the internal terminology of the system will be updated. The biggest change is that Aero will use “staking” where Aerodrome used “locking,” and “allocating” where Aerodrome used “voting.” The goal of these changes is to make the language used more accessible to a broader audience. This updated terminology will sunset imprecise language as well as terms with inaccurate associations and/or that no longer reflect how the system works (e.g. a “lock” sounds like something that cannot be traded or transferred, and “ve” is a legacy artifact from the previous era). ## Stake / Staking With Aero, tokenholders who want to participate in the system will be able to stake their AERO for a set term. _Not: Lock, escrow, vote-escrow_ ## sAERO / Staked AERO The token you receive when you stake AERO; represents your right to allocate AERO rewards to liquidity pools and earn exchange revenue in return. _Not: veAERO, Lock, veNFT_ ## Staker / sAERO holder / token operator A person who holds sAERO. _Not: voter, locker, sAERO voter_ ## Staking Period The duration of a Stake; longer periods generate more weight. _Not: lock period, vesting time, lock duration_ ## sAERO Weight / Staking Weight The allocation power of your sAERO. _Not: voting power, voting weight_ ## Allocate / Allocating What sAERO holders do with their positions: allocate AERO rewards to pools. _Not: vote / voting_ ## AERO Rewards AERO distributed to liquidity providers, as allocated by sAERO holders _Note: “emissions” will still be used in places_ ## Exchange Revenue / Protocol Revenue What sAERO holders earn in exchange for allocating AERO rewards. _Not: voting rewards, voter rewards_ ## More Reading [![Aero Launches Today: Get on Board](/images/articles/aero-launches-today/banner.webp)](/articles/aero-launches-today/) ### [Aero Launches Today: Get on Board](/articles/aero-launches-today/) [Oct 21, 2026](/articles/aero-launches-today/) [![The Aero Economy](/images/articles/the-aero-economy/banner.webp)](/articles/the-aero-economy/) ### [The Aero Economy](/articles/the-aero-economy/) [Oct 19, 2026](/articles/the-aero-economy/) [![Aero Launch Update: All Systems Go](/images/articles/aero-launch-update-all-systems-go/banner.webp)](/articles/aero-launch-update-all-systems-go/) ### [Aero Launch Update: All Systems Go](/articles/aero-launch-update-all-systems-go/) [Sep 25, 2026](/articles/aero-launch-update-all-systems-go/) --- # The AER Engine: FAQ — Aero - URL: https://aero.xyz/articles/aero-the-aer-engine-faq/ - Description: Overview and details about Aero’s economic system, Gauge Caps, and the global rewards rate. ![The AER Engine: FAQ](/images/articles/aero-the-aer-engine-faq/banner.webp) June 6, 2026 # The AER Engine: FAQ ## What will the AERO Rewards rate be at launch? The rate of AERO Rewards for each pool will be based on projected pool-level revenue (trading fees, liquidity payments, MEV fees). On an annualized basis, we expect the effective global inflation rate to range between 8–12%. For comparison, Aerodrome’s current inflation rate is \~12% annually and Velodrome’s is \~16% annually. ## Will there be a maximum AERO Rewards rate? Yes, the current plan is for the Aero Fed to set the minter’s global rewards cap at launch to 20% annualized inflation. Because gauge caps will likely always hold gauges below their theoretical ceiling rate, the sum of all gauge accrual is expected to be less than the minter’s global rate. The difference is never assigned to anyone, so it is never minted and never contributes to inflation. Unclaimed headroom simply never becomes tokens. ## What is the plan for the Aero Fed? The Fed Governor contract remains part of Aero’s economic architecture, however, we do not expect it to play a major role in Aero as the AER Engine will already be dynamically adjusting the rewards rate to maintain the relationship between the value of rewards and the pools’ revenue. The Fed moves from the primary tool for managing protocol monetary policy to a tool to be used as a fall back if needed to manage long-term protocol economics as the onchain economy grows. ## How do Gauge Caps actually work? Each pool will have a Gauge Cap that limits the rate of AERO Rewards it can accrue and distribute to LPs. There will be a global multiplier goal (e.g., 1.2x aggregated pool-level fee + incentive revenue) and each pool’s Gauge Cap will be set to receive its share backed by predicted revenue generation. Caps can be set to vary based on the competitiveness and long-term revenue potential of different pool types. ## Can Gauge Caps be adjusted? Yes, the AER Engine will adjust caps dynamically and algorithmically in response to a changing market and competitive conditions to maximize value capture and reduce value loss. ## How often are Gauge Caps updated? At launch, we expect each pool’s cap to be evaluated every 48hrs, based on projected economic activity in the following window. ## How can I track the rate of inflation over time? Two things will make point-in-time data less useful: - Aero will use a new accounting-based system that only mints new rewards tokens when they are claimed. The gauge contracts handle accounting for rewards that are owed to LPs. - Under the old system there was a constant stream of token emissions whose value varied. Gauge Caps allow the number of tokens to vary while streaming a fixed multiple of a pool’s projected revenue. This means that the minter contract will not produce a steady stream of emissions but reflect both revenue and timing of claims from LPs. We will provide resources to track the average inflation over a trailing period. ## How does this all work together? - The global emissions ceiling will be set high and will be a hard limit on the total possible rate of AERO Rewards being accrued at any time. - Each pool will have a Gauge Cap set to closely tie the value of AERO Rewards to the projected revenue generation of the pool. These caps will strategically vary by pool type, strategic importance, and market competition. - The sum total of these caps produces the protocol level multiplier of rewards value over revenue generated by pools. - With Predictive Allocation, token operators will be able to reallocate AERO Rewards to different pools as markets shift. - Mint-on-redeem means that new AERO will only be minted when an LP actually redeems their rewards. ## How can Aero sustainably reward LPs more than competitive fee reward-based venues? i.e. how can the value of AERO Rewards be higher than the value of swap fees? Fee-based DEXs can reward a liquidity provider with no more than 100% of trading fees generated by the exchange, effectively capping their ability to reward LPs while passing through all of the economic value created by the exchange and relying on secondary mechanisms such as selling tokens to support their costs. Many exchanges are now actively reducing the reward rates for liquidity providers, redirecting as much as 25% of fees to companies or token holders. This dynamic favors a platform that can sustainably pay LPs more than the fees they generate, and the most direct way to do that is to pay them a claim on the revenue growth they help create rather than what they are able to generate in that moment. This is what Aero does. It rewards LPs with a token that is a claim on 100% of the protocol’s current and future revenue, from every source: trading fees, launch payments, liquidity payments, bridge fees, aggregator fees, and more to come. The reward streamed to a single pool’s LPs can exceed that pool’s swap fees because it is a share of a [far larger, growing, multi-source pie](https://x.com/wagmiAlexander/status/2063758963057795305), rather than a rebate of one pool’s flow. The distribution of AERO rewards is in effect the protocol borrowing against its own future revenue (something we call [constructive dilution](https://blog.dromos.xyz/issuance)), repaid when the liquidity it attracts generates the volume and fees supporting the token. This holds on one condition: growth outpacing dilution. As long as revenue grows faster than the token inflates, each AERO’s claim grows, and the premium funds itself. The AER Engine is what maintains this discipline: by pegging emissions to a multiple of revenue, it ensures Aero pays LPs a competitive rate but never more than growth can justify. ## More Reading [![Aero + Predictive Allocation FAQ](/images/articles/aero-predictive-allocation-faq/banner.webp)](/articles/aero-predictive-allocation-faq/) ### [Aero + Predictive Allocation FAQ](/articles/aero-predictive-allocation-faq/) [May 8, 2026](/articles/aero-predictive-allocation-faq/) [![Aero Dynamics: The Economics of Ethereum’s Unified Liquidity Layer](/images/articles/aero-economic-case/banner.webp)](/articles/aero-economic-case/) ### [Aero Dynamics: The Economics of Ethereum’s Unified Liquidity Layer](/articles/aero-economic-case/) [Mar 30, 2026](/articles/aero-economic-case/) [![New Terminology for a New Era](/images/articles/aero-terminology/banner.webp)](/articles/aero-terminology/) ### [New Terminology for a New Era](/articles/aero-terminology/) [Mar 29, 2026](/articles/aero-terminology/) --- # Coinbase Tokenized Stocks Launch on Aerodrome — Aero - URL: https://aero.xyz/articles/coinbase-tokenized-stocks-launch-on-aerodrome/ - Description: Coinbase Tokenized Stocks have arrived on Base, with day-one liquidity live on Aerodrome. ![Coinbase Tokenized Stocks Launch on Aerodrome](/images/articles/coinbase-tokenized-stocks-launch-on-aerodrome/banner.webp) August 24, 2026 # Coinbase Tokenized Stocks Launch on Aerodrome Coinbase Tokenized Stocks have arrived on Base, with day-one liquidity live on Aerodrome. Tokenized shares in major U.S. companies will be issued by Coinbase, minted on Base, and available on Aerodrome. Once onchain, these tokenized assets will be composable across Base and accessible 24/7 to persons in eligible jurisdictions outside of the U.S. More from [Base](https://www.base.org/stocks). ## Real equity, tokenized Coinbase tokenized stocks are real equity securities, issued as tokens: - Backed 1:1 by shares held in regulated custody - KYC’d holders receive true ownership benefits; dividends & splits handled onchain - Fully Base-native: composable across DeFi where users can trade, lend, stake, and more This is a novel approach to tokenizing equities, and it brings the industry closer to what onchain real-world assets (RWAs) should be: ownership of an asset with the guarantees, rights and benefits of that asset onchain. Coinbase Tokenized Stocks may not be available in your region due to local regulatory restrictions. ## The economy, onchain The goal of DeFi was never just for the onchain economy to grow, but for the global economy itself to come onchain. This broader migration has already been happening in areas such as foreign exchange. Equities are the next clear step. As a \~$70 trillion market begins to move onchain, it will need a venue able to deliver the 24/7 access and fast, efficient execution that have become baseline expectations of onchain systems. But it will also need a venue that’s able to effectively bootstrap newly tokenized markets ahead of known demand, and to enable the innovation and experimentation that makes onchain markets so compelling. ## If it trades onchain, it trades best on Aerodrome Aerodrome is already the most efficient venue for spot trading across many assets: it hosts the number-one onchain pool for BTC and the deepest market in global onchain FX\*. This is because flow concentrates where execution is best. As the world’s equities come onchain, we expect the same to hold. The first tokenized stocks are live today, with more rolling out over the coming weeks. [View Stocks on Aerodrome](https://aerodrome.finance/liquidity/stocks) ## About Aerodrome Aerodrome is the essential trading and liquidity hub of Base. As the network’s leading decentralized exchange (DEX), Aerodrome unlocks high-efficiency execution for traders and sustainable rewards for liquidity providers. For builders and issuers, Aerodrome is the DEX of choice for launching, bootstrapping, and growing liquid markets for new and existing tokens. In 2026, Aerodrome will merge with Velodrome to become Aero: the unified liquidity layer for all of Ethereum. --- ## FAQ ### General **Where can I learn more about Coinbase Tokenized Stocks?** - [Stocks on Base](https://www.base.org/stocks) - [Tokenized Stocks documentation](https://docs.base.org/base-chain/asset-issuance/tokenized-stocks-on-base) **What are Coinbase Tokenized Stocks?** They’re [B20 tokens](https://docs.base.org/base-chain/network-information/b20-token-standard) (_an extension of the ERC-20 token standard_) issued natively on Base, each backed 1:1 by an underlying US equity share held in regulated custody. Coinbase is the issuer. Coinbase Tokenized Stocks give you exposure to a real underlying share. Holders have a direct, senior claim on the underlying equity. A paradigm shift from other products that offer a synthetic, a debt claim, or a derivative wrapper rather than a claim on a real share. **How is custody and regulation structured?** Coinbase is the issuer, licensed and authorized by the Abu Dhabi Global Market’s Financial Services Regulatory Authority and Alpaca, a regulated broker and custodian, holds them in a bankruptcy-remote structure, in a trust for token holders. Primary minting and redemption are limited to KYC-onboarded institutional partners and Authorized Participants, using the same create-and-redeem model as traditional ETFs and ADRs. **Do I get shareholder rights like dividends or voting?** Coinbase Tokenized Stocks give you exposure to an underlying share. Dividends and splits are handled through an onchain multiplier rather than by changing your token balance. Your raw token count stays the same while the multiplier scales to reflect dividends (reinvested after applicable withholding and fees) and splits. Your share-equivalent value updates without breaking DeFi positions. ### Where & how to trade **Where can I trade these tokens?** At launch, day-one liquidity for Coinbase Tokenized Stocks will be available on Aerodrome. This is where users can trade Coinbase Tokenized Stocks directly. Tokenized Stocks are also part of the broader Base ecosystem. **Are stocks highlighted on Aerodrome?** Users navigating to the Liquidity page on Aerodrome will find a new _Stocks_ filter showcasing the available tokenized stocks on Aerodrome. Users can supply liquidity from this page. **Am I eligible to trade these?** Users from the following countries are excluded from trading Coinbase Tokenized Stocks: USA, UK, Canada, Australia, Singapore. Review the Aerodrome and Coinbase Terms of Service for any further restrictions. Eligibility is enforced at the interface level based on location. ### Providing liquidity **Can I provide liquidity for these pools?** Yes. Liquidity pools for these assets are open to LPs, the same as any other Aerodrome pool. **How do I earn as a liquidity provider?** LPs can choose to earn AERO or trading fees generated by the pool. Check the app for current details. ### DeFi & self-custody **Can I self-custody these tokens?** Yes. They’re B20 tokens, an extension of the ERC-20 token standard, compatible with any self-custody wallet. **Can these tokens be used elsewhere in DeFi?** Yes, they’re composable across DeFi protocols on Base. **How do stock splits and dividends work onchain?** The token uses an onchain multiplier to reflect corporate actions like splits and dividends, without breaking standard ERC-20 balances or disrupting how the token functions across DeFi apps. ### Risk & disclaimers **Are there legal requirements for trading these tokens?** Yes. You may only access those securities if it is legal for you to do so in your country of residence. Furthermore, you are responsible for researching whether it is legal for you to access any token on the Website. Aerodrome does not offer, solicit, recommend or provide investment advice with regards to any tokenized securities. Nor does Aerodrome issue, underwrite, custody, price, recommend, solicit, execute, settle, or determine the registration or exemption status of tokenized securities. Because Aerodrome only provides neutral software infrastructure, you must do your own research regarding any legal requirements applicable to you individually. **What if I’m in a restricted region?** Users won’t be able to access these pools through the interface. Attempting to circumvent geo-restrictions may violate applicable terms of service. --- _\*Source: [Blockworks — Aerodrome Dashboard — Competitive Landscape](https://blockworks.com/analytics/aerodrome/aerodrome-competitive-landscape)._\ _[Aerodrome: Onchain BTC-USD Spot Volume](https://blockworks.com/analytics/aerodrome/aerodrome-competitive-landscape/aerodrome-onchain-btc-usd-spot-volume)_\ _[Aerodrome: Onchain FX Spot Volume](https://blockworks.com/analytics/aerodrome/aerodrome-competitive-landscape/aerodrome-onchain-fx-spot-volume)_ _Legal Note: Aerodrome (and its affiliates) do not offer, solicit, recommend or provide investment advice with regards to any tokenized securities. Nevertheless, tokenized securities may appear on the Website and it is important that users understand that tokenized securities are still securities subject to the same laws, regulations and restrictions as non-tokenized securities. As a result, Aerodrome (and its affiliates) do not issue, underwrite, custody, price, recommend, solicit, execute, settle, or determine the registration or exemption status of tokenized securities. Tokenized stocks are only available in eligible jurisdictions outside of the U.S._ ## More Reading [![Aero is on the Horizon](/images/articles/aero-is-on-the-horizon/banner.webp)](/articles/aero-is-on-the-horizon/) ### [Aero is on the Horizon](/articles/aero-is-on-the-horizon/) [Jul 16, 2026](/articles/aero-is-on-the-horizon/) [![The AER Engine and the Aero Economy](/images/articles/the-aer-engine-and-the-aero-economy/banner.webp)](/articles/the-aer-engine-and-the-aero-economy/) ### [The AER Engine and the Aero Economy](/articles/the-aer-engine-and-the-aero-economy/) [Jun 7, 2026](/articles/the-aer-engine-and-the-aero-economy/) [![The AER Engine: FAQ](/images/articles/aero-the-aer-engine-faq/banner.webp)](/articles/aero-the-aer-engine-faq/) ### [The AER Engine: FAQ](/articles/aero-the-aer-engine-faq/) [Jun 6, 2026](/articles/aero-the-aer-engine-faq/) --- # The AER Engine and the Aero Economy — Aero - URL: https://aero.xyz/articles/the-aer-engine-and-the-aero-economy/ - Description: An update on Aero’s economic system and the forthcoming AER Engine, including details on Gauge Caps and the global rewards rate. ![The AER Engine and the Aero Economy](/images/articles/the-aer-engine-and-the-aero-economy/banner.webp) June 7, 2026 # The AER Engine and the Aero Economy ## Introduction Today, Aerodrome and Velodrome combined represent the industry’s single highest-revenue decentralized spot exchange—having delivered over [half a billion in revenue](/economics/) to token operators. And soon, they’ll merge to form Aero, designed from the ground up to serve as the unified liquidity layer for all of Ethereum and the definitive onchain spot exchange. Aero will be the first decentralized exchange built on [MetaDEX03](https://blog.dromos.xyz/introducing-metadex03), the latest DEXOS from [Dromos Labs](https://dromos.xyz/), making it the most technologically and economically advanced exchange on the market: introducing first-of-their-kind technologies such as internalized MEV auctions and upgraded dynamic fees. And it will also be the first protocol to be powered by [Predictive Allocation](/articles/aero-economic-case/). Aero will feature new twin economic engines: the REV Engine and the AER Engine. The REV Engine layers additional revenue streams into the protocol and directs them toward the AERO token. It backs the AERO token with new sources of value and in turn enables the token to more efficiently compensate DEX liquidity providers for the risk they take on in facilitating token markets. In this post, we focus on the AER Engine, a package of core economic upgrades designed to dynamically tether the AERO Rewards rate to pool revenue over time to help ensure both short-term competitiveness and long-term sustainability. ![AER Engine — Adaptive Emissions Rate: optimizing liquidity rewards for max sustainability.](/_astro/aer-engine-promo.CelOMuCH_Z22QTbu.webp) ## New Economics for the New Aero To make Aero a forever DEX, its economic system had to be built for the new onchain era and be more adaptive and responsive than anything else on the market. **Which is why Aero’s upgraded economics will be more dynamic at every level:** - **From counting tokens to managing value.** The system shifts from accounting in units of tokens to dynamically managing units of value, minting only what is needed to win. - **Adaptive global policy.** The economic policy actively calibrates to different market and competitive regimes, by predetermined rules tied to set criteria. - **The Aero Fed sets the global cap** on AERO reward rates (i.e., the inflation rate). - **Gauge Caps set the per-pool ceiling** on AERO reward rates. - **Predictive Allocation sets the per-pool level of AERO reward rates.** Each pool’s rewards are determined primarily by token operators’ allocations (sAERO holders), who earn the revenue pools generate. In short, the nature of rewards is changing: Aero will be maximally competitive and flexible while meaningfully limiting inflation, ensuring the system’s long-term sustainability. ## A Powerful Adaptive Engine The AER Engine is a pivotal leap in the industry-leading exchange economic model pioneered in MetaDEX02, the DEXOS underlying Velodrome and Aerodrome today. We have discussed one of its components, [Predictive Allocation](/articles/aero-economic-case/), at length; here we discuss the rest. At launch, Aerodrome followed a transparent, predetermined rewards schedule enforced by immutable code until the [Aero Fed](https://medium.com/@aerodromefi/the-aero-fed-fueling-the-future-13e4f2273dea) turned on and rate became adjustable. Each week, emissions could be increased or decreased by 1 basis point or maintained at the same rate. ![Annualized inflation has stepped down through take-off, cruise, and the Aero Fed era — to roughly 10.9%.](/_astro/chart-annualized-inflation.CLUAJKxt_1Lc9Ry.webp) In this system, the minter emitted a set number of tokens every week, and those tokens were distributed to LPs. The reward rate was set as a percentage of total supply, with inflation measured by the number of tokens emitted rather than by their dollar value. As a result, market conditions, competitive dynamics, and token prices could all change, but the rate of new AERO emitted mostly would not. That could leave too little or too much value emitted for the conditions; nonetheless, the dominance of MetaDEXs over legacy exchanges shows how well the system worked in aggregate. MetaDEX02’s economics decomposed LP risk and shifted pieces of it to parties more willing to bear it. It moved ownership continuously toward active participants and away from entrenched, non-participating interests. It aligned all stakeholder classes. And it sustainably paid LPs more than the competition by streaming a token that, when locked, represented a full claim on the future revenue of the exchange itself in excess of fees. MetaDEX03 keeps all of these innovations and adds an economic paradigm shift: from a system that optimizes quantities to one that measures and optimizes value, yielding large efficiency gains to outcompete in a shifting, growing industry. ## How the AER Engine Works Aero makes rewards value-denominated for the first time. Rather than minting a fixed number of tokens and letting their dollar value float, the AER Engine targets a dollar value of rewards per pool—a multiple of that pool’s projected revenue—and mints only the tokens needed to hit it. At the pool level, two controls do this: - **Predictive Allocation:** Where rewards go. Token operators (sAERO holders) continuously steer allocation toward pools that are actually earning fees. - **Gauge Caps:** How much each pool can get, by value. Each pool’s reward value is held to a multiple of its revenue. Everything below is how those two controls come to life in MetaDEX03 and the all new Aero. ## Details and Key Changes ### The Global Rewards Cap Today, Aerodrome’s inflation rate stands at \~12% and Velodrome’s at \~16%. At launch, the global rewards cap is expected to cap inflation at 20% annualized, but this is a ceiling, not a target. The realized annual inflation rate will be calibrated by the AER Engine and is expected to run well below the global rewards cap; we estimate 8%–12%. ### The [Minter](https://github.com/dromos-labs/metadex-specs/blob/main/docs/minter/minter.md) In MetaDEX02, the minter emits a set number of tokens into gauges every seven days. In MetaDEX03, Aero’s minter becomes **accounting-based**: gauges will intelligently track the rewards owed to LPs, and tokens will only be minted when claimed. The minter runs at a fixed reward rate per second, set by the global reward cap, but now each gauge accrues at its own rate: - A gauge’s theoretical ceiling rate = the minter rate × its share of allocation weight (set by token operators). Rewards accrue to active-tick LPs and are minted on claim. - However, every gauge will be given a custom rewards rate—enforced by a **Gauge Cap**—that limits how quickly rewards accrue to LPs based on pool revenue. The global reward cap is set at a theoretical maximum value that would only come into play in healthy market conditions where there is a lot of revenue to be gained. Practically, the sum total of gauge caps based on pool revenue will never reach the global cap. Because these tokens never enter the accounting system, they never get minted, preventing unnecessary inflation. The system only ever pays what it needs to win; never more, never less. ### Gauge Caps Gauge Caps tie the value of AERO Rewards that can flow to a given pool dynamically to that pool’s revenue (from swap fees, MEV fees, liquidity payments). Each gauge receives regular updates on its pool’s projected revenue, and its cap is adjusted dynamically to hold rewards at a fixed ratio of that projected revenue. Caps can be adjusted at any duration; at launch, we expect to recalibrate every 48 hours to mirror the initial sAERO allocation windows. ### The Fed The Fed Governor contract remains part of Aero’s economic architecture, however, we do not expect it to play a major (if any) role in Aero, as the AER Engine will already be dynamically adjusting the rewards rate to maintain the relationship between the value of rewards and the pool revenue. The Fed will primarily be a tool used as a fall back if needed to manage long-term protocol economics as the onchain economy grows. ### What this Means Token rewards flip from token-denominated to value-denominated for the first time. Consequently, Aero can compensate LPs reliably and strategically—higher than competing DEXs, but never more than necessary. Capturing more value, while spending less. ### How it All Works Together: An Example Take a single WETH/USDC pool that receives 10% of the total allocation weight. In the old system, the pool gets 10% of the fixed weekly token emissions—the same token quantity regardless of price. So the value reaching LPs swings with the token, landing above or below the intended target. In the new system, the Gauge Cap targets a reward value (a multiple of the pool’s revenue) and mints only the tokens needed to deliver it. Total inflation may range from 8–12%, but each pool’s reward value remains in a consistent, competitive band, measured in dollars, set per pool. ![Gauge Caps flip emissions from token-denominated to value-denominated: in the same WETH/USDC pool, the old model holds the token count flat so the value delivered to LPs over- or under-shoots, while Gauge Caps flex the tokens minted with price and land on the $120k target every time.](/_astro/chart-gauge-caps-example.Daig8qJr_1O0bpj.webp) Recall that this is a secondary layer on rewards efficiency. [Predictive Allocation](/articles/aero-economic-case/) is the first. Under Predictive Allocation, token operators regularly re-allocate toward pools that are earning fees, so rewards follow productive pools as the market moves. As the second layer, Gauge Caps, between allocation updates, keep each pool’s reward _value_ pegged to its revenue. Allocation sets the direction of rewards, and caps set the magnitude. Letting each pool’s reward value stay competitive means that the number of tokens minted—and thus realized inflation—must be free to move. This is why the system still needs a hard ceiling on inflation: the global cap. The market provided this ceiling under MetaDEX02. Because emissions were token-denominated, a falling AERO value automatically shrank the value of rewards, so the market itself limited how much real value the protocol spent. Aero replaces that implicit, value-driven limiter with an explicit cap and pegs rewards to pool revenue instead. If this new framework was turned on at any point in the last \~7 months, inflation would have been nearly identical to the flat rate (3.9M/weekly vs 4.0M/weekly). But within this variance, emission value would have maintained a much more competitive posture as the market fluctuated. In practice, Gauge Caps let Aero tune its competitive posture precisely across market regimes: inflation tracks revenue, remains under a hard ceiling, and is spent only where it’s productive. ![Gauge cap backtest — weekly LP emissions (actual) vs. the 1.2× framework, with the 20% cap that never binds, across Oct 2025 → May 2026.](/_astro/chart-gauge-cap-backtest.DyAjBGY8_1OzWRn.webp) ### The Engine of Global Onchain Liquidity As we opened at the top, our goal is simple: become the leading onchain spot exchange across not just revenue, but every core exchange KPI. We won’t lay out the full plan here for strategic reasons, but the trajectory of Aero assuming undisputed category leadership is easy to follow. This is closer than many assume: ![Holder revenue over the trailing 30 days: Aerodrome + Velodrome vs. Uniswap and PancakeSwap.](/_astro/chart-holder-revenue.BIlgYuOq_1vxDvo.webp) ![Trading volume over the trailing 30 days: Aerodrome + Velodrome vs. Uniswap and PancakeSwap.](/_astro/chart-volume.cmNQeAUd_1hiVLo.webp) ![Holder revenue per $1B of volume: Aerodrome + Velodrome capture far more value per dollar traded than peers.](/_astro/chart-value-capture.C9g-W21u_1sLIeh.webp) The thesis: an outsized amount of EVM volume and TVL sits in pools that generate relatively little value in the form of rewards for liquidity providers. And unfortunately across many of the leading pools on Ethereum Mainnet, liquidity providers have seen their share of the value they create slashed by up to 25% and redirected to entrenched legacy token stakeholder groups. As we’ve seen repeatedly, liquidity providers are fundamentally value-maximizers that are willing to shift at a moment’s notice to a platform that [rewards them better](https://blog.dromos.xyz/dexs) for their cost of capital. And we will reward them better. We won’t do so via the old methods of minting a fixed quantity of tokens and directing them to low-revenue pools that don’t justify the cost; rather, the protocol will direct even more value to the token via the REV Engine, turning it into a wrapper representing far more than just trading fees, increasing the premium over swap fees it already represents. At the same time, the first-of-its-kind AER Engine ensures that the system only mints what is needed to win. That is how Aero becomes the largest exchange across every metric—revenue, volume, and TVL—with the momentum of onchain spot markets behind it. We win the markets worth winning, at the price they’re worth. ## More Reading [![The AER Engine: FAQ](/images/articles/aero-the-aer-engine-faq/banner.webp)](/articles/aero-the-aer-engine-faq/) ### [The AER Engine: FAQ](/articles/aero-the-aer-engine-faq/) [Jun 6, 2026](/articles/aero-the-aer-engine-faq/) [![Aero + Predictive Allocation FAQ](/images/articles/aero-predictive-allocation-faq/banner.webp)](/articles/aero-predictive-allocation-faq/) ### [Aero + Predictive Allocation FAQ](/articles/aero-predictive-allocation-faq/) [May 8, 2026](/articles/aero-predictive-allocation-faq/) [![Aero Dynamics: The Economics of Ethereum’s Unified Liquidity Layer](/images/articles/aero-economic-case/banner.webp)](/articles/aero-economic-case/) ### [Aero Dynamics: The Economics of Ethereum’s Unified Liquidity Layer](/articles/aero-economic-case/) [Mar 30, 2026](/articles/aero-economic-case/) --- # The Aero Economy — Aero - URL: https://aero.xyz/articles/the-aero-economy/ - Description: Aero is built to pay LPs what it takes to win: how it wins trading flow, earns more from it, and keeps the token economy behind it in balance. ![The Aero Economy](/images/articles/the-aero-economy/banner.webp) October 19, 2026 # The Aero Economy **TL;DR** - **Aero** launches October 21: an onchain spot exchange designed to serve as the unified liquidity layer for all of Ethereum - Aero brings together Aerodrome and Velodrome—two DEXs that dominate their respective ecosystems—and extends **a fully upgraded version of their winning exchange model** to seven networks - Aero is able to **pay [LPs](#term-liquidity-providers-lps) more,** giving them the option to earn AERO, a token that—when staked—is a claim on all sources of exchange revenue - Aero is built to do three things: - **Win trading flow** - Network expansion increases market by \~4x - Extending Aero’s proven ability to win high-value asset classes as they come onchain - Programmable fee rebates can unlock more retail flow - Active-tick rewards and market-responsive fee/revenue mechanisms improve capital efficiency, deepening liquidity to compound dominance - **Increase the value of that flow** - Upgraded dynamic fees + MEV tax increases fees/revenue on trades - [Fee-earning](#term-fee-earning-unstaked-liquidity) LPs can earn more on Aero with risk-adjusting smart fees and a 0-5% unstaked fee rate at launch - [AERO-earning](#term-aero-earning-staked-liquidity) LPs can earn even more, with a multiplier set to track 1.2x the value of revenue over time - **Optimize the underlying token economy** - Predictive Allocation leverages market dynamics to direct issuance to high-potential existing and emerging markets, even ahead of demand - [Gauge Caps](#term-gauge-caps) track value of potential AERO rewards to projected revenue, preventing overspending and allowing rates to surge with volatility - MinStake time keeps payments to useful liquidity - The Momentum Fund is able to use market-aware buybacks to control supply, able to burn AERO and [sAERO](#term-saero) - The REV Engine is set to introduce new revenue streams that don’t require new AERO issuance, increasing rev/token - Unstaked fee can dial up over time, increasing revenue with dominance - Long-term modeling shows how Aero is built to become more competitive and productive as it scales. Key terms 16 definitions this piece leans on. Read them first, or jump back here from a term's first use. Before we begin, here are the key terms this piece relies on. Each builds on the ones before it. **Participants** - **Traders:** anyone who swaps on Aero, from retail users to professional desks. - **Liquidity providers (LPs):** deposit tokens into pools so traders have liquidity to trade against. - **Token Operators:** stake AERO, direct rewards to pools and earn Exchange Revenue. - **Token Issuers:** teams that launch and grow markets for their tokens on Aero. **Fees** - **Trading Fees:** the standard fee a trader pays on a swap. Every exchange charges them, and on most they are at best the ceiling for what an LP earns. - **Smart Fees:** new with Aero, everything a pool earns from trades: Trading Fees plus, where switched on, a dynamic fee premium when markets move fast and an MEV tax on swaps that bid high priority fees. Programmable fee rebates are designed to let Aero charge registered aggregators, routers and desks less to win their flow. Other exchanges tend to offer one of these at a time, fragmenting liquidity across strategies. Smart Fees combine all three in one core product. **Positions** - **sAERO:** the position you get when you stake AERO for a period you choose. - **AERO-earning (staked) liquidity:** LP positions staked to earn rewards in AERO. The Smart Fees they generate go to Token Operators. - **Fee-earning (unstaked) liquidity:** LP positions not staked. They keep the Smart Fees they generate, minus any unstaked fee, a share of those Smart Fees that goes to Token Operators: 0% to 5% at launch, depending on the pool type and network. **Revenue** - **Liquidity Payments:** incentives Token Issuers pay Token Operators to direct rewards to a pool. - **Launch Payments:** Liquidity Payments made to support a new token’s launch. - **Pool Revenue:** everything a pool pays the Token Operators directing rewards to it: Smart Fees from AERO-earning liquidity, any unstaked fees, and Liquidity and Launch Payments. - **Service Revenue:** fees from products built around the exchange rather than from trades in its pools, such as an sAERO marketplace, automated management tools and cross-chain swaps. All service revenue will return value to the token, mostly through buybacks and/or burns, without requiring more rewards for LPs. - **Exchange Revenue:** the share of everything paid on Aero that the exchange keeps, across every pool on every network: Pool Revenue plus Service Revenue. It reaches beyond Smart Fees, and sAERO is the claim on all of it. **Rewards** - **AERO Rewards:** AERO paid to AERO-earning LPs, directed to pools by Token Operators and minted only when claimed. - **Gauge Caps:** each pool’s AERO Rewards are capped at a multiple of its Pool Revenue with a long-run target of about 1.2x across the exchange. Caps adjust as markets move and distribute rewards on a variable basis, surging with volatility, paying less in calm times: allocation sets where AERO Rewards go, and the cap sets the most each pool can receive. _Revenue flows up to Token Operators and the token. AERO Rewards flow down to LPs._ **Aero launches on October 21st.** Built on the new MetaDEX03 architecture from Dromos Labs, Aero is a full upgrade of the exchange model that enabled Aerodrome and Velodrome to dominate their home ecosystems. It brings that model to more networks with nearly four times the DEX volume of Base and OP Mainnet. ![One exchange, seven launch networks](/_astro/chart-launch-networks.Q3BkQZy0_2mQpab.webp) The timing could not be better. More strategic assets and high-value markets are coming onchain just as the AMM model faces new threats. New execution technologies, such as Proprietary AMMs increasingly compete for retail flows. LP returns are compressing, making the structural ability to compensate them at a higher rate the competitive advantage for a DEX in this new era. **Aero is built for this moment.** It is designed to be the unified liquidity layer for Ethereum: serving strategic markets, helping bring more high-value assets onchain, and returning as much value as possible to its open network of participants. That starts with generating more value to pay liquidity providers (LPs) more. Paying LPs fairly is the problem every AMM-powered onchain exchange has to solve. LPs carry real costs to hold a position, and point-in-time fees don’t always cover them. As more strategic assets come onchain, AMMs will need to pay LPs for the full value of their liquidity, not just the fees of the moment. The ability to do so will decide who wins those markets. Exchanges tend toward [winner-take-most](https://ideas.repec.org/a/oup/qjecon/v104y1989i2p255-274..html). Over time, LPs move to the venue that pays them best, and [traders follow the depth they bring](https://doi.org/10.1287/mnsc.2023.00726). As a pool becomes the dominant venue, more flow makes its liquidity more productive, earning more fees and making it harder for competitors to match its returns. The venue that pays enough to hold liquidity through changing conditions keeps the traders, and that position compounds. Paying LPs fairly is a necessity for the industry and a competitive advantage for Aero. Aero does this by paying LPs in a token that, when staked, is a claim on all of the revenue the exchange earns, [not just block-by-block trading fees](https://blog.dromos.xyz/sustainability). That lets Aero reward each deposit for the value it adds to the whole network, and pay more than a venue that can only pass through its own fees. It also solves what some have called the [alignment trilemma](https://blog.dromos.xyz/alignment). In most systems, contributors, investors, and LPs compete for the value coming in. When one token is the claim on all revenue, holding it is how anyone shares in Aero’s growth, so everyone is aligned behind it. And as builders, issuers and other partners hold sAERO, more people have a stake in bringing assets, liquidity and users to Aero. We’ve covered many of Aero’s features in [earlier pieces](/articles/the-aer-engine-and-the-aero-economy/). Today, we want to show how they fit together in one economic model, built to dominate onchain spot trading as tokenization accelerates. **That model has three parts, and everything Aero does serves one or more of them:** 1. **Win the flow:** trading activity, especially for strategic markets and high-value asset classes. 2. **Increase the value of that flow:** raising fees when sustainable and adding new revenue streams. 3. **Optimize the token economy that enables it:** managing supply and controlling dilution over time. Each part strengthens the others. Competitive rewards attract liquidity that helps Aero win flow. Earning more from that flow lets the protocol sustain those rewards with less new token issuance. Growth strengthens the economics, and stronger economics funds more growth. For anyone wanting to go deep on things like Gauge Caps, market-aware compensation rates, dynamic fees, active-tick rewards, MinStake time, the Momentum Fund, and more: this is for you. ## 1. Win the Flow Winning flow starts with expansion. At launch, Aero will [deploy across seven networks:](/articles/aero-launch-update-all-systems-go/) Ethereum Mainnet, Base, Arbitrum, OP Mainnet, Ink, Arc, and Robinhood Chain. Every network will receive a full deployment, with [AERO Rewards](#term-aero-rewards) directed across the network [through Predictive Allocation](/features/predictive-allocation/). When the launch was announced, the networks served by Aerodrome and Velodrome carried about 17% of EVM spot trading volume. By mid-October, the seven launch networks were handling nearly four times the DEX volume of Base and OP Mainnet. That gives the protocol far more room to grow, on top of the growth of onchain activity itself. And the assets moving into these markets are changing. Stablecoins, at over $300 billion in market capitalization, already show the scale financial assets can reach onchain. Tokenized equities are following. In 2026 alone, they have roughly quadrupled, from about $0.84 billion [to $3.5 billion](https://app.rwa.xyz/stocks). Yield-bearing assets such as tokenized Treasuries total about $14.7 billion across products, and they are building blocks for onchain savings, collateral, and portfolio management. The room to build liquid markets around these assets grows with their adoption. Aero’s expansion brings it closer to this capital. As eligible assets become available for trading and integration, they need dependable liquidity, competitive execution, and connections to the rest of the onchain economy. [Predictive Allocation](/features/predictive-allocation/) can help liquidity flow with demand, or even in anticipation of it. [Slipstream V3 can make](/features/slipstream/) it more productive. [Metaswaps](/features/metaswaps/) will extend its reach across supported networks. This gives Aero two sources of growth at once: winning a greater share of the markets that already exist, and helping build entirely new markets onchain. Winning these markets means making Aero the best place to supply liquidity. LPs need fair, competitive returns, traders need competitive execution, and new assets need liquidity deployed efficiently, at the lowest cost, before they have established trading histories. Aero’s architecture connects all three. ### More productive liquidity: Slipstream V3 Slipstream’s success has come from capital efficiency: more volume, more fees, and less slippage per dollar of TVL. Two features explain most of that efficiency. AERO Rewards go only to liquidity in the active tick, the price range where trades execute, so rewards pay for depth that traders actually use. Dynamic fees then price that depth for market conditions. ![More value into the active tick: per $1 of fees a pool earns from trades, LPs keep $0.75 to $0.83 on a legacy AMM, $1.00 on a 100% fee AMM, more than $1.00 with Aero Smart Fees, and about 1.2x Pool Revenue with AERO Rewards](/_astro/chart-active-tick.Tw_F5Jfw_7evY2.webp) Efficiency helps new pools become useful with less capital and helps established pools attract more flow. For LPs, it means their deposits can support more activity. For traders, it means better execution. ![Top pools by LP earnings efficiency: average daily LP earnings per $1M TVL on Base](/_astro/chart-lp-earnings-efficiency.CMbOYXNz_Z2cR0sD.webp) Slipstream V3 adds more precise fees and new fee sources for pools, designed to bring what LPs earn closer to what it costs them to provide liquidity. But its role in winning flow starts with the same principle that made Slipstream successful: make each dollar of liquidity more productive. On Base from Jul 1 to Sep 28, 2026, Slipstream’s three optimized dynamic-fee pools on Aerodrome traded 3x to 14x more volume per dollar of liquidity than Uniswap V3’s highest-volume pool on each pair. They had 40% to 46% less price impact per $1M traded and earned 1.6x to 2.1x as much from trades per dollar of liquidity, before AERO Rewards. ![More volume and fees per $1 of TVL: Slipstream optimized dynamic-fee pools against Uniswap V3](/_astro/chart-volume-fees-per-tvl.CaLshmRA_ZSKT1a.webp) ![40% to 46% less price impact per $1M traded](/_astro/chart-price-impact.Del0pAKX_Z1SDAl6.webp) ### Competing for retail flow Slipstream V3 also gives Aero more ways to attract valuable trading activity. As in any financial market, verifiable retail flow on Aero generally carries less adverse-selection risk for LPs than flow from informed traders and arbitrageurs. So Aero can charge retail traders less while the pool still earns attractive fees. Programmable fee rebates, the third part of [Smart Fees](#term-smart-fees), are designed to let Aero charge registered aggregators, routers and desks a lower fee on public, auditable terms, so it can compete with new tech like Proprietary AMMs for that flow. The aim is to match the cost of trading more closely to the cost of serving it, and to win more of the flow that improves these markets. ### Making new markets easy to enter Aero’s goal is to dominate the markets it enters, and that means being the best venue for all LPs, including those who prefer to earn fees directly. These LPs can help establish liquidity on new networks and in new pairs while [Token Operators](#term-token-operators) begin directing AERO Rewards to those pools. At launch, fee-earning liquidity will receive promotional unstaked fee rates: - **0%:** Ethereum Mainnet, Arbitrum, and Robinhood Chain. - **5%:** Arc, OP Mainnet, Ink, and Base. On the largest competing venue, LPs get point-in-time [Trading Fees](#term-trading-fees), and they give up 17% to 25% of those to platform fees. On Aero, LPs who earn fees keep 95% to 100% of Smart Fees at launch. Smart Fees are Trading Fees plus, where switched on, a dynamic fee premium and an MEV tax. So LPs on Aero keep a bigger share of a bigger fee base. That means an LP who never stakes can earn more on Aero than an LP who keeps 100% of Trading Fees elsewhere, even after the 5% unstaked fee. These rates prioritize adoption. Earning fees directly is familiar to LPs who don’t yet know Aero’s reward system, and a low cost of entry makes it easier for them to move. Every LP who arrives deepens the market for the next trader and the next LP, so each market Aero wins gets harder to compete for. As pools deepen and become dominant venues, the unstaked fee can rise while still beating competing venues. A higher unstaked fee makes AERO-earning liquidity more attractive, shifting more liquidity to staking, where all of its Smart Fees go to Token Operators. ## 2. Increase the Value of That Flow Winning flow is the foundation. Earning more from that flow strengthens everything built on it. On Aero, that starts with Smart Fees. Every swap pays Trading Fees, and Smart Fees add two things on top where they are switched on: a dynamic fee premium when markets move fast, and an MEV tax on swaps that bid high priority fees. Both additions raise what the same trade earns, so LPs and Token Operators get more from the same volume. ### Dynamic fees: better pricing as markets change The first step to paying LPs fairly is compensating them correctly when their costs are highest. The dynamic fee is the part of Smart Fees that prices market demand for liquidity: a fee that is competitive in calm conditions undercompensates LPs during volatility, and one set for volatility discourages trading when markets are quiet. [Traders behave differently in each](https://blog.dromos.xyz/slipstream-v2-where-technology-meets-economics-1): when markets move fast they care more about getting filled than about the fee, and when markets are calm they shop for the lowest price. Slipstream’s dynamic fee framework has evolved around that relationship. Its first phase let pool fees vary with the assets being traded. Its second added higher fees during volatility. Aero launches with an optimized dynamic fee algorithm, calibrated after almost a year of research to earn more when liquidity is most valuable. Backtesting the same swaps against flat-fee alternatives shows the benefit of adapting to market conditions. Against a flat fee set at the same average rate, the dynamic fee earned more in all nine pool-windows tested: three pools across calm, volatile and post-volatility periods in August and September 2026. On WETH/USDC CL50 it earned $2.5k more in the calm window (Aug 8 to 18) and $17.4k more in the volatile week (Aug 19 to 26). ![Ahead in calm and volatile markets: extra earned over a flat fee on WETH/USDC CL50](/_astro/chart-dynamic-fee-backtest.ByvHEsMt_Z1crdeL.webp) What explains this value differential? On WETH/USDC CL50 the dynamic fee charged an average of 3.9 bps in its calmest periods and 8.3 bps in its most volatile. The most volatile periods produced 15% of the pool’s volume and 25% of its fees (Sep 11 to Oct 6, 2026). ![Charging less when calm, more when volatile: WETH/USDC CL50 average dynamic fee](/_astro/chart-dynamic-fee-calm-volatile.DOzNJzRx_1hdnWC.webp) The framework is designed to add optimizations for different pools, asset types, and market conditions. Slipstream V3’s modular design lets future upgrades apply to existing pools, so LPs don’t have to migrate and liquidity doesn’t split across versions. The deepest, most-traded pools get the new pricing live as optimizations occur. As Aero wins more flow, more trades are priced for the conditions they happen in: LPs are paid fairly when markets move, and traders pay less when they are calm. ### MEV tax: capturing the value of urgency Paying LPs fairly means paying them for the risk they carry, and much of that risk comes from informed traders and arbitrageurs. Like high-frequency traders in traditional markets, they profit by acting first, trading against a pool’s stale price at LPs’ expense. Onchain, though, they leave a fingerprint: the priority fees they pay reveal when they act and how much a swap is worth to them. They pay priority fees to execute before other transactions. Historically, that payment has gone entirely to sequencers, even though the trade depends on LPs’ liquidity. Aero’s MEV tax module lets pools capture part of that value. When a swap’s priority fee exceeds a threshold associated with typical retail activity, the pool charges an additional fee that rises with it. Swaps below the threshold pay nothing extra. The tax is the second addition to Smart Fees and is split like the rest of them: to fee-earning LPs, minus the unstaked fee, or to the Token Operators directing rewards to the pool when the liquidity is AERO-earning. The tax targets one kind of transaction: competitive arbitrage that bids high priority fees. Typical retail swaps and ordinary tips are untouched, and the sequencer still receives every priority fee it is paid. What changes is who shares the arbitrage margin. Today, on the largest arbitrage trades, much of it leaves the ecosystem while LPs absorb the cost. Returning part of it to the LPs whose liquidity made the trade possible, or to Token Operators, deepens liquidity. Deeper liquidity tightens execution and brings more volume to the network, so the chain hosts a larger market. Tens of millions of dollars have been spent on priority fees for Aerodrome transactions. Aero lets more of the value around those transactions return to the network that enables them. The module will roll out gradually and expand based on results. We expect the largest gains in the deepest, most actively traded pools, where competition for priority is strongest. Together, the dynamic fee premium and the MEV tax raise Smart Fees per dollar of liquidity. That is what lets Aero pay LPs more while giving Token Operators more to earn. ## 3. Optimize the Token Economy Smart Fees increase the earnings from each trade, but much of what Aero pays LPs comes in AERO. Every exchange pays for its liquidity somehow. What matters is who pays and who gets paid. Exchanges that pass 100% of trading fees to LPs can look free, but someone still covers what it costs to build and run them, often hundreds of millions of dollars in token unlocks and treasury spending. On Aero, that cost is issuance. Paying LPs in AERO means issuing new tokens: every AERO Reward is newly minted AERO, and each new token spreads the exchange’s revenue across a larger supply. That cost is also Aero’s edge. Issuance turns the network’s future revenue into pay for LPs today, which a venue limited to its own fees cannot do. It also shifts ownership from holders who sit still to the LPs and Token Operators who grow the network. Done well, as Dromos Labs wrote in [On Issuance](https://blog.dromos.xyz/issuance), it “grows the pie” instead of slicing it thinner. And because Aero sets rewards as a dollar budget, a higher AERO valuation means fewer new tokens for the same pay. Done badly, issuance outpaces revenue and every token’s claim shrinks. So the rest of the system is built to keep it tied to value, in three ways: - **Direct issuance where it earns the most.** Predictive Allocation, where Token Operators direct rewards ahead of demand, replaces a weekly vote on last week’s fees, which could keep paying a pool that had stopped earning. Active-tick rewards and MinStake time pay only for liquidity that stays useful. - **Slow the rate of dilution.** Gauge Caps tie rewards to what each pool earns, replacing a fixed schedule and a weekly rebase, and Momentum Fund buybacks and burns take supply back out. - **Grow revenue that doesn’t depend on issuance.** Liquidity and [Launch Payments](#term-launch-payments) bring in outside money, and the unstaked fee and [Service Revenue](#term-service-revenue) from the REV Engine can add revenue without raising Gauge Caps. The goal is revenue per token that rises over time, while Aero keeps paying LPs fairly. The sections below cover each one. ### Predictive Allocation: bringing liquidity ahead of demand Providing liquidity is an act of anticipation. Some of the most valuable liquidity arrives before a market is established. A strategic asset may need deep liquidity before institutions can use it. A new pair may need dependable execution before applications integrate it. A new use case for LP positions may need scale before it becomes viable. Getting liquidity where it is needed, when it is needed, is a hard problem. It is risky for LPs to take on alone, and costly for issuers, ecosystems and exchanges to manage themselves. It is also a core problem in financial markets. New markets often fail to get off the ground, or go illiquid in volatile periods. Predictive Allocation creates a new market mechanism to tackle this problem. Token Operators compete to anticipate demand, and those who anticipate it well earn more. A market-based approach puts more knowledge to work than any single team or model could. Predictive Allocation lets sAERO coordinate that initial capital, often alongside Liquidity and Launch Payments that a token’s issuer streams to the Token Operators allocating to its pool. Token Operators direct AERO Rewards toward pools they expect to generate future [Pool Revenue](#term-pool-revenue), so issuance goes where it is expected to earn the most. Those rewards give LPs a reason to deploy capital, while the allocation itself signals where demand may emerge. This makes Predictive Allocation a new primitive, it rewards Token Operators for giving LPs a useful market signal. LPs receive a clearer stream of compensation for providing the liquidity to serve it. The net effect can improve the core economics of providing liquidity. The resulting depth can improve execution and attract more volume, so the market can grow into what Token Operators anticipated. As it grows, it earns the network more revenue. [Aerodrome has done this before](/articles/aero-economic-case/): when cbBTC launched, Coinbase Ventures and the Aerodrome Foundation used their veAERO positions to seed liquidity rewards early, and cbBTC trading on Base grew to about $12 billion a month at its peak. The same mechanism helps established markets. Suppose a tokenized stock’s pool has been quiet ahead of the company’s earnings call. A Token Operator who expects trading to pick up can shift allocation to that pool in advance. LPs can see the shift and deposit, knowing that if trading surges and the pool’s Gauge Cap rises with it, AERO Rewards are already allocated to fill it. Token Operators who moved early hold a larger share of that pool’s allocation when trading arrives, so they earn more of its Pool Revenue. Depth arrives with demand rather than after it. The payoff: new markets open with deep liquidity, and the LPs who arrive early are paid for the market they help build, not just the trades of the moment. ### Gauge Caps: a market-aware compensation budget AERO Rewards are streamed to LPs in real time through a pool’s “gauge.” That gauge calculates the rate of rewards based on how much allocation weight is assigned x the minter’s base rate. The realized rate of rewards for LPs is also influenced by a new mechanism: a Gauge Cap. Each pool dynamically projects future revenue and then adjusts the rate of possible rewards at a multiplier of that revenue, denominated in dollar value. These caps set the maximum rate of rewards accordingly, which prevents unnecessary minting of AERO because the AERO held back by the cap is never distributed. Gauge Caps also allow for something equally important: the ability to surge rewards rates with volatility. As market signals warrant, a Gauge Cap can quickly adjust up to allow for a higher rate of rewards. Assuming Token Operators have pre-allocated sufficiently, this means LPs will be able to earn more in these moments. System-wide, this allows dilution to temporarily increase when backed by opportunities to earn revenue before returning to baseline. ![Gauge Caps: each pool’s cap is projected Pool Revenue times a multiplier; allocation above the cap is not minted, and AERO Rewards stay in line with Pool Revenue](/_astro/chart-gauge-caps.CId9RxaP_Zxz5lx.webp) The long-term target is for AERO Rewards to be worth about 1.2x Pool Revenue on average across the exchange. Because Pool Revenue includes Smart Fees, with their dynamic fee premium and MEV tax, a pool that earns more per dollar of liquidity pays its LPs more at the same multiple. Individual pools can sit above or below that target as competitive conditions change. This lets Aero keep a premium over Smart Fees for LPs while controlling what that premium costs in dilution. Strategic assets can get more support without the same premium on every pool. The objective is to fund the liquidity that earns the premium, at a rate that fits its market. ### Active-tick rewards and MinStake time: paying for liquidity that stays useful Aero rewards liquidity for time spent in the active tick, even when that liquidity is not immediately used by a swap. Available liquidity has value before a trader arrives, and rewarding it helps Aero prepare for future trading. MinStake time ties those rewards more closely to useful liquidity. Without it, faster blocks would let bots add liquidity for milliseconds, collect rewards and leave before a volatile move. LPs who withdraw before the minimum staking period forfeit their rewards, which are never minted, so they are effectively burned. This is designed to stop LPs from collecting rewards briefly and leaving before the periods when liquidity is most needed. The minimum duration is calibrated to asset type and market conditions. Shorter positions can be useful in highly active markets. Less frequently traded assets may benefit from longer commitments, keeping liquidity available until demand arrives. Together, active-tick rewards, responsive Gauge Caps, and MinStake time let Aero pay for available liquidity while directing more of its budget to LPs who stay useful as conditions change. ### Earning more as markets mature For LPs, there is strength in depth. As pools deepen and become the dominant venue for their pairs, LPs gain pricing power and Smart Fees earn more per trade. The unstaked fee balances what fee-earning and AERO-earning LPs take home as that happens. At first, a low unstaked fee attracts fee-earning LPs who would be taxed on competing platforms or left in fragmented markets. As a pool matures, the fee can rise to reflect the value of that depth and the Smart Fee mechanisms. That adds revenue for the Token Operators directing rewards to the pool without new issuance, and it makes AERO-earning liquidity more attractive, so more LPs switch to earning AERO. However LPs choose to be paid, pool depth grows, and so does the Pool Revenue that reaches Token Operators. ### The Momentum Fund: buybacks that offset issuance more effectively The Momentum Fund’s predecessors, the Public Goods Fund and Flight School, have bought back or locked about 110 million AERO, about 11% of circulating supply. Across all of Aerodrome’s buyback and lock programs, the total is about 180 million AERO, about 18%. Those buybacks and locks helped counter dilution from the protocol’s early growth. ![110M AERO bought back or locked by the Public Goods Fund and Flight School](/_astro/chart-buyback-history.BhxB765U_2AkvA.webp) With Aero, the strategy evolves. Gauge Caps already tie issuance to revenue, so the Fund’s job shifts to limiting total supply growth while preserving market share. It brings the Public Goods Fund and Flight School together under three mandates: - **Grow:** directs AERO Rewards toward strategic pools and new assets. - **Stabilize:** a share of the revenue the Fund earns can go to buy back AERO and manage supply depending on market conditions. - **Align:** offers builders a share of the stable value sAERO generates to add more value back to the network. The Fund pays for this from revenue it earns: the Fund holds one of the largest sAERO positions, so it earns Pool Revenue like any other Token Operator. The Aero Foundation runs the Fund and can hold that revenue in reserve, spend it on buybacks, or share part of it with builders through Align, keeping its options open as markets change. A buyback on a fixed schedule would spend the same amount whether AERO is cheap or expensive, and its predictability would let other traders buy ahead of it. The Momentum Fund is market-aware instead. It builds reserves when markets are strong and is designed to deploy more of them when markets weaken and AERO trades at a discount to its historical range, when each dollar buys more AERO. The Public Goods Fund has already tested this approach. Starting in October 2025, it ran the market-aware model as a pilot and bought 8.7 million AERO over 13 epochs. As volatility peaked, its weekly purchases reached the equivalent of 27.5% of that week’s AERO issuance and stayed above 20% for several weeks. AERO the Fund buys back can be burned, which removes supply without diluting other holders’ revenue share. The Fund can also burn sAERO, whether bought from holders who want to sell or already held. That destroys the AERO inside along with its claim on revenue, so the Pool Revenue that position would have earned goes to the sAERO holders who remain. When sAERO trades below the AERO inside it, each dollar removes more supply. “How It Comes Together” below shows what burns do to supply. ### The REV Engine: revenue that doesn’t need new issuance The REV Engine is designed to add Service Revenue that can be generated without the need for new issuance. This is because it utilizes the liquidity that has already been paid for and the ecosystem that grows around around it. Examples: - **Using sAERO.** An sAERO marketplace and automated management tools could charge fees, collected as sAERO and burned. - **Moving across networks.** Aero can add a fee to Metaswaps beyond what covers fixed costs, and that additional fee could be used for AERO buybacks and burns. - **Building on Aero.** Over time, teams can build their own products on Aero’s liquidity. A liquidity manager, for example, could charge its fee in AERO and burn part of it. Builders who hold sAERO have a reason to do this, because growing the network’s revenue grows their own stake. Generally, early pricing for internally developed products and external partnerships will focus on growing adoption. The goal is for revenue to grow with the number of ways people use the network, without each new dollar earned as [Exchange Revenue](#term-exchange-revenue) requiring more AERO Rewards. That makes the REV Engine a competitive advantage, enabling lines of business that earn revenue without requiring more LP pay, which competitors cannot draw on when they try to outpay Aero. A competitor can subsidize liquidity, but it cannot easily copy the revenue, relationships and alignment of an established network. ## Landing the Plane: How It Comes Together Aero’s objective is to increase revenue earned per token over time, while continuing to pay LPs what it takes to be the dominant liquidity hub. The opportunity starts with a larger market. More networks, strategic assets, and uses for liquidity create more flow to win. Competitive LP compensation and better execution help capture that flow, while Slipstream V3 increases what each dollar of liquidity can earn through dynamic fees and the MEV tax. As Aero grows, it can earn revenue beyond Smart Fees. Liquidity and Launch Payments bring outside capital onto the platform, and deeper, more established markets will capture a greater share of Smart Fees earned by fee-earning LPs. The REV Engine creates opportunities to build new lines of business around the platform, adding revenue sources beyond trading that don’t depend on incremental LP pay. Meanwhile, Gauge Caps and MinStake time make liquidity compensation more efficient, while Momentum Fund burns can offset part of the resulting issuance. Together, these mechanisms are designed to make Aero more competitive as it grows, while increasing revenue relative to the token supply. The critical relationship is between the revenue Aero earns and what it must pay to attract liquidity. AERO Rewards are tied to Pool Revenue, but Exchange Revenue also includes Service Revenue, which needs no extra rewards. Liquidity and Launch Payments count toward Pool Revenue, so they raise Gauge Caps like any other revenue. The unstaked fee and Service Revenue add revenue without raising them at all. This creates an opportunity for revenue to grow beyond the cost of the premium Aero pays LPs. Aero does not need to reduce that premium to improve its economics; it can earn more revenue without incrementally increasing rewards. Aerodrome already shows this. Over four weeks in September 2026, revenue to veAERO holders directing rewards reached $14.9 million: $6.1 million of trading fees passed to them, along with $8.9 million of Liquidity and Launch Payments. That was more than the $10.5 million of AERO paid to LPs over the same period, under the old fixed schedule. For sAERO holders, the math works at today’s staking levels. sAERO is about half of AERO’s supply but receives all Pool Revenue, so with rewards at 1.2x the revenue it earns exceeds the dilution it absorbs. **Three things make this work:** - **Issuance responds to value:** a higher AERO valuation means fewer new tokens for the same rewards. - **Burns lower the rate:** buybacks and burns take supply back out, lowering how fast revenue has to grow. - **A larger market raises revenue per token:** more networks, assets and products give revenue more room to grow. ### Issuance that responds to value Gauge Caps also change how token valuation affects supply. Under a fixed release schedule, the number of tokens issued stays constant while their dollar value changes with the market. Aero instead lets issuance vary within a capped range and ties reward value more closely to pools’ expected Pool Revenue. When a cap is binding, a higher AERO price means fewer tokens are needed to fund the same dollar reward budget. A lower price means more tokens are needed, subject to issuance limits. _Illustrative. Applies when a cap is binding, subject to issuance limits. Not a price forecast._ As a rough guide, the share of supply issued each year is the cap multiple, times annual Pool Revenue, divided by AERO’s fully diluted value. If AERO is valued at 10 times annual Pool Revenue, rewards at 1.2x issue about 12% of supply a year; at 20 times, the same rewards issue about 6%. Today AERO issuance runs at about 11% of supply a year. At AERO’s current valuation and today’s Smart Fees, rewards at 1.2x would issue about 8%. This directly connects valuation, revenue growth and supply growth. A growing exchange can support a larger reward budget, whereas a higher token valuation can reduce the number of tokens required to fund it. Buybacks and burns then offset part of that issuance. A lower AERO price means more tokens are issued to fund the same rewards, but each dollar of Momentum Fund buybacks also removes more tokens. Gauge Caps also make it simpler to check whether each AERO’s claim on revenue is growing. Revenue per AERO rises in any year that revenue grows faster than supply, and under the rule of thumb above, supply growth depends mostly on AERO’s value relative to Pool Revenue and on how much AERO is burned. So at any valuation, revenue has to grow as fast as supply to keep revenue per AERO level. Burns lower that rate, and a lower valuation raises it. sAERO holders receive Pool Revenue directly, so the bar is lower for them than for liquid holders, who rely on revenue per AERO alone. ### Burns and a larger market Momentum Fund buybacks and burns take supply back out, so every token burned lowers the growth rate revenue has to beat to keep revenue per AERO rising. More networks, strategic assets and products bring more flow and new sources of revenue, giving revenue more room to grow. The animation below puts all three together. It starts with new supply across valuations, removes burns worth 30% of revenue, then adds revenue growing about 15% a year, the pace at which revenue doubles in five years. Wherever revenue grows faster than new supply, revenue per AERO rises. It is illustrative and does not forecast revenue, valuation or supply. ## Built to Win the Flow Exchanges tend toward winner-take-most. As more assets come onchain, the winners will be the exchanges that pay LPs fairly, and point-in-time fees can’t do that on their own. Aero’s answer is a token that carries the value of the whole network. LPs are paid in it, Token Operators direct it, and everyone who builds the network holds a stake in the same thing. Smart Fees raise what each trade earns, Gauge Caps keep rewards tied to Pool Revenue, Momentum Fund burns take supply back out, and Service Revenue grows without raising dilution. Some of these economics are already proven, particularly the contribution of Liquidity and Launch Payments. Others remain opportunities to develop. As these revenue sources grow, Gauge Caps can keep rewards tied to productive liquidity, while burns help manage the resulting dilution. The ambition here is to build an exchange that becomes more competitive and productive as it scales. LPs earn more on their capital at risk, even before the introduction of AERO Rewards. Traders and builders get deeper markets. And sAERO holders own a claim on a revenue base designed to grow faster than the outstanding token supply. That is how Aero intends to pay LPs fairly, win the flow that follows, and give everyone who builds the network a stake in it. ## More Reading [![Aero Launch Update: All Systems Go](/images/articles/aero-launch-update-all-systems-go/banner.webp)](/articles/aero-launch-update-all-systems-go/) ### [Aero Launch Update: All Systems Go](/articles/aero-launch-update-all-systems-go/) [Sep 25, 2026](/articles/aero-launch-update-all-systems-go/) [![Aero Lite is Live on Arc](/images/articles/aero-lite-is-live-on-arc/banner.webp)](/articles/aero-lite-is-live-on-arc/) ### [Aero Lite is Live on Arc](/articles/aero-lite-is-live-on-arc/) [Sep 16, 2026](/articles/aero-lite-is-live-on-arc/) [![Coinbase Tokenized Stocks Launch on Aerodrome](/images/articles/coinbase-tokenized-stocks-launch-on-aerodrome/banner.webp)](/articles/coinbase-tokenized-stocks-launch-on-aerodrome/) ### [Coinbase Tokenized Stocks Launch on Aerodrome](/articles/coinbase-tokenized-stocks-launch-on-aerodrome/) [Aug 24, 2026](/articles/coinbase-tokenized-stocks-launch-on-aerodrome/) --- # Upgrade and Launch Hub — Aero - URL: https://aero.xyz/aero-upgrade/ - Description: The Aero Upgrade Hub: conversion rates, the launch timeline, and how AERO and VELO holders, veAERO and veVELO holders, liquidity providers and partners upgrade from Aerodrome and Velodrome to Aero. # Aero Upgrade and Launch Hub Aero launched October 21, 8:00 PM EDT Aero launched 2026-10-22T00:00:00Z. ![Get on board.](/images/aero-upgrade/banner-1200w.webp) On October 21, 2026 at 8:00 PM EDT, Aerodrome and Velodrome upgraded together to become Aero: the unified liquidity layer for all of Ethereum. If you hold AERO, VELO, veAERO, or veVELO, or you provide liquidity on either exchange, this hub has everything you need to upgrade and participate on Aero. Detailed upgrade guides are now live on Aerodrome and Velodrome - Aerodrome[aerodrome.finance/docs/upgrade](https://aerodrome.finance/docs/upgrade) - Velodrome[velodrome.finance/docs/upgrade](https://velodrome.finance/docs/upgrade) ## Key dates - October 14 Final Maxi Relay rewards become available after epoch flip. - October 15 All xVELO on chains other than OP Mainnet and Ink should be bridged back to OP Mainnet. - October 20 All veNFTs should be withdrawn from Relays or other vaults and protocols. - October 21 - Aero app goes live. - Current AERO and VELO emissions end. - New AERO emissions begin. - Upgrade portals open. ### An upgraded liquidity network token with an immutable claim on exchange revenue. At launch, AERO and VELO can be upgraded to the new AERO, and veAERO and veVELO can be upgraded to sAERO (staked AERO). sAERO will give holders the ability to allocate AERO Rewards to pools on any Aero chain and to earn Exchange Revenue from those pools as it accrues. ### Conversion rates | You hold | You receive | | -------------------------------------------------------------------- | ------------------------------------------------------------------- | | ![Aerodrome AERO](/images/token-aero.svg)1 AEROliquid or in a veAERO | ![Aero AERO](/brand-kit/aero-token.svg)1 AEROliquid or in sAERO | | ![Velodrome VELO](/images/token-velo.svg)1 VELOliquid or in a veVELO | ![Aero AERO](/brand-kit/aero-token.svg)0.044 AEROliquid or in sAERO | The VELO rate reflects how ownership of the new AERO supply is divided: Velodrome holders receive 5.5% and Aerodrome holders receive 94.5%. The rate converts that share into a per-token amount using each token's supply at launch. This rate is calculated based on projected supplies. #### Token Supply and Conversion Details - Existing AERO and VELO supply at launch AERO (Aerodrome): 2.01B VELO (Velodrome): 2.66B - Max new AERO supply at launch \~2.127B max. As existing AERO and VELO both upgrade to a unified token, the total supply of the new AERO token increases from \~2B to a max \~2.127B. The circulating supply of AERO increases from \~1.01B to a max \~1.07B. Any tokens that are not upgraded to the new AERO unified token will never reach circulation. - AERO allocation and resulting supplies The new AERO supply is split 94.5% to Aerodrome and 5.5% to Velodrome. Since AERO converts 1:1, these percentages translate directly to AERO supplies at launch. Aerodrome: 94.5% = 2.01B AERO Velodrome: 5.5% = 117M AERO - VELO conversion rate Distribute the 117M AERO across the 2.66B VELO supply to get the per-token rate: 117M AERO / 2.66B VELO = 0.044 AERO per VELO - Inflation rate The realized annual inflation rate for AERO is expected to be \~12%. The annual rate ceiling at launch is 20%. Long term, supply growth is not primarily determined by the ceiling but by features of Aero's economic system: mint-on-redeem, gauge caps, and liquidity rewards denominated in $ value vs. raw number. - Contract address The contract address for the new AERO token is listed on the [Aero docs security page ](https://app.aero.xyz/docs/security/). ### Timeline The final Aerodrome and Velodrome epoch and launch. Days to the left of launch, hours to the right, each half to scale. ### General FAQ ##### When did Aero launch? October 21, 2026 at 8:00 PM EDT (October 22, 00:00 UTC). ##### When should I upgrade? Any time. The upgrade portals on aerodrome.finance and velodrome.finance opened at 8:00 PM EDT on October 21, and liquid AERO, VELO and veNFTs can all upgrade now. ##### Which chains did Aero launch on? Base, Ethereum Mainnet, OP Mainnet, Arc, Ink, Robinhood Chain, and Arbitrum. ##### Do I have to upgrade? AERO and VELO emissions on Aerodrome and Velodrome stopped at launch. To earn AERO Rewards as an LP or Exchange Revenue as a token operator, you need to upgrade. ##### Is there a deadline to upgrade? There is no set deadline. However, front ends for legacy protocols may be shut down at a later date. ##### Is the upgrade reversible? No. Once you upgrade, you cannot convert back. ##### What happens to the Aerodrome and Velodrome apps? Both front ends stay live to facilitate the upgrade process. All gauges are deactivated and emissions have stopped. Velodrome will also continue to support trading and liquidity deposits, without its token economy, on Celo, Fraxtal, Soneium, and Unichain. ##### Where can I find the official contract addresses? All official contract addresses, including the AERO token, are listed on the [Aero docs security page ](https://app.aero.xyz/docs/security/). ### Tokens and conversion ##### What is the conversion rate? 1 AERO becomes 1 AERO. 1 VELO becomes 0.044 AERO. ##### Why is VELO 0.044? Velodrome holders receive 5.5% of the new AERO supply, and Aerodrome holders receive 94.5%. 0.044 converts Velodrome's share into a per-token rate. ##### I hold AERO or VELO on a centralized exchange. What should I do? Aero has coordinated with all major exchanges on the upgrade details and timeline. Each exchange runs its own process and timeline for upgrades. ### Predictive Allocation ##### How does allocation work? sAERO gives you the ability to choose which pools receive AERO Rewards. In return, you earn a pro rata share of Pool Revenue from those pools. ##### When can I start allocating? Now. Allocation opened at 8:00 PM EDT on October 21, as soon as you upgrade to sAERO. ##### How often can I change my allocation? Each sAERO position has a 47-hour cooldown between allocation changes at launch. The cooldown is subject to change, with notice. ##### Can one sAERO NFT allocate across chains? Yes. sAERO can allocate AERO Rewards to pools on any Aero chain in one transaction, and pay gas on Base only. ### Incentives (Liquidity Payments) ##### When should protocols deposit their final incentives on Aerodrome and Velodrome? Final incentives were due before the second-to-last voting epoch. Incentives now go on Aero pools. ### Aero Foundation and Contributors ##### How did the Aero Foundation prepare for the launch of Aero? The Aero Foundation upgraded part of the Momentum Fund's veNFTs early (6:00 PM EDT) to kick-start new gauges, so AERO Rewards could flow to new pools the moment Aero launched. The Foundation gave up the final epoch's voting rewards on those veNFTs. ##### Did Aero contributors upgrade early? No. Aero contributors upgraded when the upgrade portal opened, with all other participants. ## AERO and VELO Holders Liquid AERO and VELO tokens can be upgraded to the new AERO. For users with tokens in self-custody, the process starts at [aerodrome.finance ](https://aerodrome.finance)and [velodrome.finance ](https://velodrome.finance). ### Timeline 1. Before you upgradeCheck each item #### Checklist - xVELO on any chain other than OP Mainnet has to be bridged to OP Mainnet before it can be upgraded. 2. October 21, 8:00 PM EDTOctober 22, 00:00 UTCLaunch #### Aero launches - Upgrade portals open on aerodrome.finance and velodrome.finance. - Liquid AERO and VELO can be upgraded to the new AERO. - New AERO can be staked as sAERO. ### FAQs ##### What is the conversion rate? 1 AERO becomes 1 AERO. 1 VELO becomes 0.044 AERO. ##### Why is VELO 0.044? Velodrome holders receive 5.5% of the new AERO supply, and Aerodrome holders receive 94.5%. 0.044 converts Velodrome's share into a per-token rate. ##### Do I need to do anything to move from AERO to the new AERO token? Yes. All tokens need to be upgraded through the Upgrade portal. Nothing converts automatically. ##### Do I need a wallet compatible with Base? Yes. ##### When will my new AERO be transferable? New AERO lands in your wallet as soon as you upgrade, and transfers and trading open at the time of upgrade. ##### Do I need ETH to upgrade? Yes, a small amount of ETH is needed to cover the network fee for the upgrade process (ETH on Base for Aerodrome, and ETH on OP Mainnet for Velodrome). ##### Is the upgrade for Velodrome users different from Aerodrome? Velodrome runs on OP Mainnet, while Aero lives on Base, so the upgrade starts on one chain and settles on another. Any xVELO sitting on another chain has to be bridged back to OP Mainnet first. ##### My VELO is not on OP Mainnet. What do I do? Bridge it back to OP Mainnet first. The upgrade flow only picks up once your VELO is already on OP Mainnet. ##### Where do I go after upgrading? The upgrade flow ends on a success screen with the option to go straight to [the Aero app ](https://app.aero.xyz). ##### What if I am using a multisig? Upgrade supports multisig wallets, and there are additional steps in the upgrade process for multisig users. Multisig users are required to denote a destination wallet for their upgrade. The destination wallet must support the Base network. ## veAERO and veVELO Holders veAERO and veVELO can be upgraded to the new sAERO using the upgrade portal. Your veNFT has to be in your own wallet: if it sits in a Relay or another protocol, withdraw it first. A note for veVELO holders When you upgrade veVELO on OP Mainnet, your sAERO arrives on Base. The upgrade includes a cross-chain messaging fee paid in ETH on OP Mainnet. If your wallet doesn't support Base, the flow asks for a Base address. ### Timeline 1. October 14A week before launch #### Final Relay rewards available to claim - Maxi Relays cast their final votes on Wednesday October 7. - Rewards are claimed and compounded and become available after the October 14th Epoch. These will be the final rewards available for the relay to claim. All rewards that can be compounded have been compounded. - If your veNFT sits in a Relay, withdraw it by October 20 and vote manually in the final epoch to earn that week's rewards. 2. October 21, 6:59 PM EDTOctober 21, 22:59 UTC #### Final voting closes - The last chance to vote on Aerodrome and Velodrome. - The vote closes one hour before epoch flip. 3. October 21, 8:00 PM EDTOctober 22, 00:00 UTCLaunch #### Aero launches - Aerodrome and Velodrome emissions stop. - New AERO emissions start. - Upgrade portals open on aerodrome.finance and velodrome.finance. - Newly staked sAERO can begin to allocate AERO Rewards to liquidity pools on Aero. - veAERO and veVELO used to vote in the final voting rounds of Aerodrome and Velodrome must wait one more hour to upgrade to sAERO. 4. October 21, 9:00 PM EDTOctober 22, 01:00 UTC #### Final-epoch voters can upgrade - veNFT holders who voted in the final epoch can now upgrade to sAERO from the Upgrade portals at aerodrome.finance and velodrome.finance. - Upgraded sAERO can begin allocating AERO Rewards to pools on Aero to earn exchange revenue. ### FAQs ##### What is sAERO? sAERO is staked AERO, and it replaces veAERO and veVELO. sAERO gives holders the ability to direct AERO Rewards to pools and to earn Exchange Revenue from those pools. ##### When can I start allocating? Now. Allocation opened at 8:00 PM EDT on October 21, as soon as you upgrade to sAERO. ##### Are there incentives after launch? The Aero Foundation is depositing liquid AERO as incentives from the liquid incentive budget it received at Aerodrome's launch to support Aero's migration. The value of liquid AERO earmarked for incentives is roughly equivalent to the final voting rewards accrued on Aerodrome and Velodrome locked in gauges during the upgrade. These incentives are distributed over the course of several weeks. To recoup the value fronted as incentives, The Aero Foundation plans to reactivate the gauges at a later date in order to reclaim locked fees. ##### Does my lock duration carry over? Yes. Your sAERO keeps the time remaining on your veNFT, rounded up to the next full week. A permanent lock becomes an sAERO at Maximum Stake Duration. ##### Do I keep my veNFT ID? No. Your veNFT is retired during the upgrade, and you receive a new sAERO position. ##### What does "reset your votes" mean? A reset clears your veNFT's active votes on Aerodrome or Velodrome. A veNFT with active votes cannot be upgraded. The upgrade flow includes the reset as a step. ##### Do I need to claim rewards before I upgrade? Yes. The upgrade flow takes you through the claiming process. ##### Can I upgrade a veNFT that is in a Relay or held by another protocol? No. Get it back into your own wallet first. ##### Do I need ETH to upgrade? Yes, a small amount of ETH is needed to cover the network fee for the upgrade process (ETH on Base for Aerodrome, and ETH on OP Mainnet for Velodrome). ##### What if I am using a multisig? Upgrade supports multisig wallets, and there are additional steps in the upgrade process for multisig users. Multisig users are required to denote a destination wallet for their upgrade. The destination wallet must support the Base network. ## Liquidity Providers The upgrade portals on [aerodrome.finance ](https://aerodrome.finance)and [velodrome.finance ](https://velodrome.finance)opened at 8:00 PM EDT on October 21, making it easy to migrate liquidity deposits to pools on the new Aero. Gauges are active and AERO Rewards are streaming, directed by sAERO holders using Predictive Allocation. ### Timeline 1. Before you upgradeCheck each item #### Checklist - All deposits using ALM on Aerodrome and Velodrome should be withdrawn and manually managed. The ALM solution has wound down and no longer rebalances automatically. - On Velodrome, all VELO-earning deposits on chains other than OP Mainnet and Ink should be unstaked as gauges on other chains are shut down. - Any deposit on Lisk should be withdrawn before October 31. 2. October 21, 8:00 PM EDTOctober 22, 00:00 UTCLaunch #### Aero launches - Aerodrome and Velodrome emissions stop at epoch flip. - New AERO emissions start. - Upgrade portals open on aerodrome.finance and velodrome.finance. - Liquidity providers can migrate deposits to pools on Aero using the upgrade portal on Aerodrome and Velodrome. ### FAQs ##### When can I move my liquidity? Now. Aero pools went live on October 21, and liquidity in eligible Aero pools earns AERO Rewards. ##### Which pools are eligible to earn AERO Rewards? Check [the Aero app ](https://app.aero.xyz)to see which pools are eligible to earn AERO Rewards. ##### Can I create a new pool? Yes. Anyone can create a pool on Aero. ##### Can I upgrade if I am LPing in a pool that includes a token paired with VELO? VELO exists on OP Mainnet but the upgraded AERO exists on Base. Users LPing in a pool that pairs with VELO should withdraw from their position, upgrade their VELO, and bridge it back to OP Mainnet to begin LPing in an upgraded pool. ##### What if I am using a multisig? Upgrade supports multisig wallets, and there are additional steps in the upgrade process for multisig users. Multisig users are required to denote a destination wallet for their upgrade. The destination wallet must support the Base network. ##### What if there's no matching pool for my liquidity deposit on Aero? Not all pools on Velodrome and Aerodrome have a comparable pool on the new Aero. For deposits without a 1:1 pool destination in the upgrade flow, manual withdrawal will be required and new pools can be created on the Liquidity tab. ## For Partners This section covers additional detail for those who integrate Aero, manage liquidity for others, hold locks as a protocol, deposit incentives, or make markets. Upgrading your own holdings? - Liquid AERO or VELO[AERO & VELO Holders](#aero-velo-holders) - veAERO or veVELO[veAERO & veVELO Holders](#veaero-vevelo-holders) - Liquidity deposits[Liquidity Providers](#liquidity-providers) ### Aggregators and integrators - Aero contracts were deployed before launch on October 21. - Integration partners receive contract addresses directly at deployment. Addresses are also listed on the [Aero docs security page ](https://app.aero.xyz/docs/security/). Verify any address you receive against that page. - Gauges were activated within the first hour after launch on October 21, 8:00 PM EDT (October 22, 00:00 UTC). - Aerodrome and Velodrome pools stay live but stopped receiving emissions at launch. ### ALMs and vaults - Users should withdraw from ALMs on Aerodrome and Velodrome. Positions do not move automatically. - Liquidity in eligible Aero pools earns AERO Rewards. - If a pair you manage has no Aero pool, anyone can create a Basic or Slipstream pool on Aero. ### Protocols holding locks If your protocol holds veAERO or veVELO, your own or on behalf of users: - Only the wallet that owns a veNFT can upgrade it. Locks held in a vault, lending market or other contract must go back to their owner first, or be upgraded by the protocol that owns them. - The flow is: claim rewards and rebase, reset votes, upgrade. Anything left unclaimed cannot be recovered after the upgrade. - Contract wallets and multisigs are asked to confirm a recipient address that supports Base. Transfers to that address cannot be reversed. - The veNFT ID is retired. Each upgrade creates a new sAERO position, so any system that tracks positions by veNFT ID needs to map to the new position. - All locks can upgrade now. - Remaining lock time carries over, rounded up to the next full week. Permanent locks become sAERO at Maximum Stake Duration. - Velodrome locks upgrade on OP Mainnet and the sAERO arrives on Base. The upgrade includes a cross-chain messaging fee paid in ETH. ### Protocols depositing incentives - On Aero, incentives stream continuously over a set period, and you can deposit them now. - Each sAERO position has a 47-hour cooldown between allocation changes. - The Aero Foundation is depositing AERO incentives on Aero pools over the weeks after launch. ### Market makers - Liquid AERO and VELO upgrade with no cooldown. VELO upgraded on OP Mainnet arrives as AERO on Base. - New AERO is transferable as soon as you receive it. - 1 AERO becomes 1 AERO. 1 VELO becomes 0.044 AERO. - Aero has coordinated with all major exchanges on the upgrade details and timeline. Each exchange runs its own process and timeline. - The AERO token address can be found here: ### Relay operators - Operators are encouraged to call `vote([],[])` on their Relay contract as soon as possible (address is found next to your Relay name on the Lock page). - After the old gauges are disabled, this vote transaction is required in order to withdraw veNFTs from the Relay. ### Locked liquidity - Partners that locked liquidity in the Aerodrome pool launcher will be able to migrate their liquidity when the locks expire. Coordinate with your Aero contacts for assistance. - For locked liquidity with a long-time horizon, liquidity no longer earns AERO rewards now that all gauges are deactivated. Liquidity can be unstaked and continue earning fees. - Aggregators will continue to service liquidity in Aerodrome pools. --- # Legal Disclaimer — Aero - URL: https://aero.xyz/legal/ - Description: Legal disclaimer and terms governing use of aero.xyz, the informational site for the Aero protocol. # Legal Disclaimer Last updated on October 16, 2026 Please read this disclaimer carefully before using https\://aero.xyz (hereinafter referred to as the "Website", and the services offered therein as "Our Services"). The terms of use of the Website contained herein (the "Terms of Use") are entered into by and between the Website user ("You") and Aerodrome Foundation ("Aero Foundation", hereinafter referred to as the "Foundation" or "We/Our/Us"). These Terms of Use explain the terms and conditions by which you may access and use Our Services. By using the Website, You confirm that You accept this legal disclaimer and the Terms of Use, and agree to comply with both (the "Agreement"). If You do not agree, You must not use the Website or Our Services. You further represent and warrant that You: 1. are of legal age to form a binding contract; 2. have not been previously suspended or removed from using Our Services; and 3. have full power and authority to enter into this Agreement with Foundation, and in doing so will not violate any other agreement to which You are a party. If You are registering to use Our Services on behalf of a legal entity, You further represent and warrant that: 1. such legal entity is duly organized and validly existing under the applicable laws of the jurisdiction of its organization, and 2. You are duly authorized by such legal entity to act on its behalf. 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Our Services and Our Website are only available to You — and You should only access any of Our Services or Our Website if You agree completely with these terms. ## Our Services Our Website (and Our Services) provides a web or mobile-based means of access to a decentralized protocol on various public blockchains, including but not limited to Ethereum and Layer 2 blockchains built on top of Ethereum, that allows users to trade certain compatible digital assets (the "Protocol"). Our Website and Our Services are distinct from the Protocol and are one, but not the exclusive, means of accessing the Protocol. The Protocol itself is comprised of self-executing smart contracts that are deployed on various public blockchains, such as Ethereum and Layer 2 blockchains built on top of Ethereum. We do not control or operate the Protocol. It is impossible for anyone to control or operate the immutable smart contracts that make up core aspects of the Protocol. 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However, if you are a resident of the United States or United States person you may not access any unregistered security or security registered under a registration intended only for non-United States persons such as Reg S. Residents of Australia, Singapore, the United Kingdom or Canada also may not access securities. ## Usage Risks The Website will not be responsible for any losses, damages, or claims arising from events falling within the scope of events including, but not limited to: mistakes made by the user (e.g., payments sent to wrong addresses), software problems of the Website or any related software or service (e.g., malware or unsafe cryptographic libraries), technical failures (e.g., hardware wallets malfunction), security problems experienced by the user (e.g., unauthorized access to wallets), actions or inactions of third parties (e.g., bankruptcy of service providers, information security attacks on service providers, and fraud conducted by third parties). 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As a result, You are responsible for doing your own due diligence and understanding that tokenized securities come in many different forms with different legal rights and regulatory structures that may impact their holders. For example, fully backed tokenized securities are distinguishable from linked securities, which are different from tokens that offer synthetic exposure to securities, or tokens that constitute security-based swaps. ## Investment Risks Investment in cryptocurrencies involves a high degree of risk and price fluctuation, and can lead to loss of money. The information published on the Website cannot and does not guarantee that amounts invested will not be lost. You are responsible for understanding all risks, doing your own due diligence, and making your own decision on how to interface with the Website and Our Services. 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As far as the law allows, neither We nor Our affiliates or service providers will be liable to You for any: (1) financial losses; (2) loss of use, data, business or profits; or (3) indirect, special, consequential, exemplary, punitive, or any other damages arising out of or relating to the Services or these Terms of Use. 2. You acknowledge that the limitations of liability in this section are material provisions of these Terms of Use, and that absent those limitations of liability, We would have declined to enter into the Terms of Use on the economic and other terms stated in it. 3. 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You further agree that the only duties and obligations that We owe You are those set out expressly in this Agreement. ## Arbitration Except for disputes related to copyrights, logos, trademarks, trade names, trade secrets or patents, any dispute, controversy or claim, whether brought by You or Us, arising out of, relating to, or in connection with your use of the Website or Our Services, or in connection with these Terms of Use, including disputes arising from or concerning their interpretation, violation, invalidity, non-performance, or termination, shall be finally resolved by binding arbitration by the Judicial Arbitration and Mediation Services (JAMS) pursuant to its Comprehensive Arbitration Rules and Procedures. The tribunal shall have the power to rule on any challenge to its own jurisdiction or to the validity or enforceability of any portion of the agreement to arbitrate. **The parties agree to arbitrate solely on an individual basis, and that these Terms of Use do not permit class arbitration or any claims brought as a plaintiff or class member in any class or representative arbitration proceeding.** The arbitral tribunal may not consolidate more than one person's claims and may not otherwise preside over any form of a representative or class proceeding. In the event the prohibition on class arbitration is deemed invalid or unenforceable, then the remaining portions of this agreement to arbitrate will remain in force. ## Changes We may revise and update the Terms of Use in this Legal Disclaimer from time to time in Our sole discretion and without notice. All changes are effective immediately when We post them and apply to all access to and use of the Website thereafter. Your continued use of the Website following the posting of revised Terms of Use means that You accept and agree to the changes. You are expected to check this page from time to time so You are aware of any changes, as they are binding on You. ## Third-Party Services and Content In using this Website, You may view content or utilize services provided by third parties ("Third Parties"), including links to Web pages and services of such parties ("Third-Party Content"). We do not control, endorse, or adopt any Third-Party Content and will have no responsibility for Third-Party Content, including, without limitation, material that may be misleading, incomplete, erroneous, offensive, indecent, or otherwise objectionable in your jurisdiction. Your business dealings and/or correspondence with such Third Parties is a matter solely between You and the Third Parties. We are not liable or responsible for any loss or damage of any sort incurred as a result of such dealings and You understand that Your use of Third-Party Content, and your interactions with Third Parties, including, but not limited to wallet providers and automated liquidity management providers, is at your own risk. You may have questions regarding Wallet integration with Our Services: - For WalletConnect, please consult[their privacy policy](https://walletconnect.com/privacy) - For Coinbase Wallet, please consult[their legal agreements](https://www.coinbase.com/legal/) - For (Gnosis) Safe, please consult[their privacy policy](https://safe.global/privacy) ## Intellectual Property Rights The Website and its entire contents, features, and functionality (including but not limited to all information, software, text, displays, images, video, and audio, and the design, selection, and arrangement thereof) are owned by the Foundation and its licensors and affiliates, and are protected by United States and international copyright, trademark, trade dress, patent, trade secret, and other intellectual property or proprietary rights laws. The Foundation name and all related names, logos, product and service names, designs, and slogans are trademarks of the Foundation or its licensors or affiliates. Moreover, all intellectual property rights associated with Third Parties and Third-Party Content referenced on or offered through the Website are owned by the respective entities offering such services. You agree not to use any Foundation or Third Party intellectual property without prior written permission from Foundation or such Third Party. You are herein granted a limited, revocable, and nonexclusive right to post excerpts from or create a hyperlink to the Website, provided that full and clear credit is given to Us with appropriate and specific direction to the original content, and provided such hyperlink is not related to any portrayal of the Foundation or the Website in any false, misleading, derogatory, or otherwise offensive manner. Aero is on the horizon.\ Stay tuned. ----------- --- # Social Media Disclaimer — Aero - URL: https://aero.xyz/social-media-disclaimer/ - Description: Disclaimer covering the Aero social media accounts and the information they share. # Social Media Disclaimer This feed, and the information contained herein, has been provided to you solely for informational purposes. Neither the information, nor any opinion contained in this feed, constitutes an offer to buy or sell, or a solicitation of an offer to buy or sell, any securities or other financial instruments or to participate in any advisory services or trading strategy. Nothing contained in this feed constitutes investment, legal or tax advice. You should make your own investigations and evaluations of the information herein. Any decisions based on information contained in this feed are the sole responsibility of the viewer. None of Aero nor any of its affiliates, shareholders, partners, members, directors, officers, management, employees or representatives makes any representation or warranty, express or implied, as to the accuracy or completeness of any of the information or any other information (whether communicated in written or oral form) transmitted or made available to you. Each of the aforementioned parties expressly disclaims any and all liability relating to or resulting from the use of this information. Certain information contained herein (including financial information) may have been obtained from published and non-published sources. Such information has not been independently verified. The account owner, along with Aerodrome Foundation ("Aero Foundation"), may hold financial interests in certain assets referenced in this feed, and may buy or sell digital assets referenced in this feed. Aero Foundation regularly engages in buying digital assets for its own proprietary accounts. Any information or analysis in this feed is based on technical, fundamental, and market considerations and do not represent a formal valuation. Certain asset classes discussed, including digital assets, may be volatile and involve risk, and actual market outcomes may differ materially from perspectives expressed here. Except where otherwise indicated, the information in this feed is based on matters as they exist as of the date of preparation and not as of any future date, and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date hereof. Aero is on the horizon.\ Stay tuned. -----------