Aerodrome and Velodrome are merging into the Aero platform, which will operate across seven networks, with plans to convert the existing AERO and VELO tokens into a new AERO token.
According to a statement reported by The Block, Aerodrome on Base and Velodrome on OP Mainnet are consolidating their existing operations under a shared onchain spot exchange. Aero will operate on Ethereum mainnet, Base, Robinhood Chain, Ink, OP Mainnet, Arc, and Arbitrum.
What will change for AERO and VELO holders?
The part of the merger that directly affects token holders is the migration of existing assets to the new structure. According to the announced plan, the conversion will work as follows:
- AERO and VELO: Will migrate to the new AERO token.
- veAERO and veVELO: Will be converted to sAERO.
The statement does not provide conversion ratios or a detailed migration timeline. As a result, it is not possible to determine from this information how much of the new token holders will receive for their existing tokens.
Platform revenue will go to stakers
Alex Cutler, CEO of Aero developer Dromos Labs, said that all of the platform’s revenue will go to AERO stakers. The new economic model aims to incentivize liquidity providers who supply assets for trading and give stakers a role in allocating the rewards budget.
Under a system called “Predictive Allocation,” participants will be able to direct liquidity rewards to markets where they expect their staked AERO to generate revenue. The announced revenue-sharing model does not guarantee a fixed rate of return.
Combined monthly volume across seven networks reaches $120 billion
According to data shared by the project, Aerodrome accounted for 58% of decentralized exchange trading volume on Base in the third quarter, while Velodrome accounted for 60% of volume on OP Mainnet.
Total decentralized exchange volume across the seven networks where Aero is expanding reaches approximately $120 billion per month. This figure represents the total market size of the networks where Aero will operate, not Aero’s own trading volume.
One of the new features, Metaswaps, aims to connect transactions across networks by using existing onchain liquidity. Slipstream V3 introduces dynamic fees that increase during rapid market movements, as well as an MEV feature designed to capture additional value from transaction ordering on supported Layer 2 networks.
Not investment advice.