Aerodrome Finance

Overview

Aerodrome Finance is a decentralized exchange (DEX) and liquidity hub built on the Base blockchain. Inspired by Velodrome (on Optimism), Aerodrome serves as the foundational DeFi infrastructure for the Base ecosystem, facilitating seamless token swaps, efficient liquidity provisioning, and sustainable yield generation through vote-escrow tokenomics.

By combining the best of Curve-style veToken economics with a user-friendly UI and powerful incentives, Aerodrome aims to be the core liquidity engine that powers Base's fast-growing ecosystem of decentralized applications.

Key Features

• AMM-Based Trading: Swap any ERC-20 tokens with low slippage and deep liquidity.
• veAERO Governance: Lock AERO tokens to gain voting power and earn protocol rewards.
• Gauge Voting: Direct emissions to specific liquidity pools through voting.
• Bribes: Incentivize veAERO holders to vote for certain pools via third-party rewards.
• Composable Infrastructure: Integrate seamlessly with other Base-native DeFi protocols.
• Low Fees: Minimal swap fees and gas costs thanks to Base’s Layer 2 scalability.

How It Works

1. Liquidity providers (LPs) deposit token pairs into Aerodrome pools.
2. Traders swap tokens using the AMM mechanism, paying a small fee.
3. Fees are collected and distributed to veAERO voters and LPs.
4. AERO emissions are allocated weekly based on governance votes (gauge voting).
5. Bribes and incentives can be offered to encourage votes toward specific pools.
6. Users can lock AERO to receive veAERO and participate in governance and fee-sharing.

A Growing Base Ecosystem

Aerodrome is quickly becoming the go-to liquidity layer on Base, attracting DeFi protocols, NFT projects, DAOs, and token launches. As the Base ecosystem expands, Aerodrome ensures efficient token trading and capital flow through its powerful, community-driven infrastructure.

Projects building on Base can bootstrap liquidity, engage users through incentives, and integrate with Aerodrome’s smart contracts to optimize user experience.

Tokenomics: AERO and veAERO

The AERO token is the native utility and governance token of Aerodrome Finance. It can be locked to receive veAERO (vote-escrowed AERO), which gives holders:

• Voting power on gauge emissions
• A share of protocol fees
• Bribe incentives from other protocols
• Influence over protocol direction and upgrades

The locking mechanism encourages long-term alignment between the protocol and its users. The longer you lock your AERO (up to 2 years), the more veAERO you receive.

Benefits of Using Aerodrome

• Efficient Swaps: Low fees and slippage for both stable and volatile asset pairs.
• Yield Opportunities: LPs and veAERO holders can earn sustainable rewards.
• Permissionless: Anyone can create pools and participate in governance.
• Bribe Market: Projects can drive liquidity to their pools via veAERO incentives.
• Fair Launch: No team pre-mine or VC allocations. Community-first distribution.
• Base-Optimized: Built natively for the Base Layer 2 chain, ensuring fast and cheap transactions.

Getting Started

1. Install a Web3 wallet such as MetaMask.
2. Add the Base network to your wallet (or connect via Base Bridge).
3. Visit the official app: aerodrome.finance.
4. Swap tokens, provide liquidity, or stake AERO to receive veAERO.
5. Participate in governance and earn from trading fees and bribes.

Frequently Asked Questions

Q: Is Aerodrome safe to use?
A: Aerodrome is open-source and built on audited contracts, with ongoing security monitoring. Always verify links and use trusted wallets.