Six days to the
$AERO merger, and one of the two gaps from last week's note is now closed.
On 11 Oct the open questions were: how Binance would handle the conversion, and the numbers for Aero's new reward system. Today Binance published its plan (as reported by PANews and TechFlow, 16 Oct):
- VELODROME/USDT trading ends 3 Nov, 03:00 UTC. Open orders cancelled.
- Deposits and withdrawals of old VELODROME and old AERO pause 3 Nov, 03:30 UTC.
- AERO spot pairs keep trading through the swap.
- Old AERO converts 1:1. VELODROME converts at 0.044 AERO each.
- A separate notice will say when deposits of new AERO open.
What that means for supply: total goes from 2.00B to 2.12B and circulating from 1.00B to 1.07B, so about 7% more AERO in circulation after the swap.
The second gap is still open. Aero has published no emission figures for the new system, and last month Aerodrome paid out about $1.50 of new tokens for every $1 of fees it sent to lockers (DefiLlama, 11 Oct). That ratio decides whether the merger is a cost cut or a rename.
Price since the 11 Oct note: $0.957 then, $0.920 now, with +73% over 30 days against +9% for BTC (CoinMarketCap, 16 Oct, 11:21 UTC). The market has priced the merger; it has not yet seen the numbers.
What is the right discount for a 7% supply increase that was announced in advance?
#AERO #Aerodrome #Binance