Aerodrome and Velodrome no longer exist separately: as of 00:00 UTC on 22/10, the two DEXs have merged into Aero, a single exchange across 7 networks (Ethereum, Base, OP Mainnet, Arbitrum, Robinhood Chain, Ink, Arc). And if you hold $AERO or VELO, there’s something you need to do.
1/ The conversion. According to the official hub at aero.xyz, 1 old AERO = 1 new AERO, and 1 VELO = 0.044 AERO. veAERO and veVELO become sAERO, with new NFT IDs: you need to withdraw your positions and claim your rewards before migrating.
2/ The split. 94.5% of the new supply goes to the Aerodrome community and 5.5% to Velodrome, based on each one’s share of revenue over the past 52 weeks. No VCs, no token sale.
3/ The dilution. Max supply is ~2.127B, up from 2.01B (+5.8%); circulating supply goes from ~1.01B to a maximum of ~1.07B. Expected annual inflation is ~12%, with a cap of 20%. 100% of pool revenue goes to sAERO stakers.
4/ The actual scale. According to The Block, Aerodrome accounted for 58% of DEX volume on Base in Q3, and Velodrome for 60% on OP Mainnet. The team says the 7 networks have a combined monthly DEX volume of ~$120B.
5/ The market isn’t paying attention for now. $AERO is trading at $0.799 on Binance at around 18:50 UTC, down 7.4% over 24 hours, but CoinDesk’s DeFi index was down 5.6% this Thursday and $ETH is down ~3.7%. It’s hard to attribute the drop to the merger alone.
My take: the bet is that unified liquidity across 7 chains will attract more activity than it costs in emissions.
- If volumes outside Base take off in the coming weeks, ~12% inflation becomes sustainable.
- If volume remains concentrated on Base, it’s mostly just more tokens for the same business.
Are you migrating your positions right away, or waiting to see the first volumes on Ethereum and Arbitrum?
#DeFi #Aero
1/ The conversion. According to the official hub at aero.xyz, 1 old AERO = 1 new AERO, and 1 VELO = 0.044 AERO. veAERO and veVELO become sAERO, with new NFT IDs: you need to withdraw your positions and claim your rewards before migrating.
2/ The split. 94.5% of the new supply goes to the Aerodrome community and 5.5% to Velodrome, based on each one’s share of revenue over the past 52 weeks. No VCs, no token sale.
3/ The dilution. Max supply is ~2.127B, up from 2.01B (+5.8%); circulating supply goes from ~1.01B to a maximum of ~1.07B. Expected annual inflation is ~12%, with a cap of 20%. 100% of pool revenue goes to sAERO stakers.
4/ The actual scale. According to The Block, Aerodrome accounted for 58% of DEX volume on Base in Q3, and Velodrome for 60% on OP Mainnet. The team says the 7 networks have a combined monthly DEX volume of ~$120B.
5/ The market isn’t paying attention for now. $AERO is trading at $0.799 on Binance at around 18:50 UTC, down 7.4% over 24 hours, but CoinDesk’s DeFi index was down 5.6% this Thursday and $ETH is down ~3.7%. It’s hard to attribute the drop to the merger alone.
My take: the bet is that unified liquidity across 7 chains will attract more activity than it costs in emissions.
- If volumes outside Base take off in the coming weeks, ~12% inflation becomes sustainable.
- If volume remains concentrated on Base, it’s mostly just more tokens for the same business.
Are you migrating your positions right away, or waiting to see the first volumes on Ethereum and Arbitrum?
#DeFi #Aero