Aerodrome and Velodrome Unite Under ‘Aero Network,’ Expand to ETH and Circle’s Arc
, the company that made Aerodrome on Base and Velodrome on Optimism, has announced the launch of Aero, a single (DEX). The move brings together two of the most popular liquidity protocols into one scalable platform that will link significant networks, make liquidity easier to find, and expand DeFi’s reach across ETH and Circle’s Arc blockchain.
Combining Tokens and Protocols
Aero Network will combine Aerodrome and Velodrome, pooling their development and liquidity resources for better efficiency. The existing AERO and VELO tokens will be combined into one AERO token as part of this change. No additional tokens will be created to make sure everyone is on the identical page and to stop dilution.
The new token will be given out based on how much each protocol contributed: VELO holders will get 5.5% and AERO holders will get about 94.5%. It is intended that the AERO token would directly reflect the platform’s revenue and growth, giving holders a proportional share of any improvements made to the protocol as a whole.
MetaDEX 03: The Next Generation of platform Architecture
Aero has released the MetaDEX 03 system, which is an improved platform operation engine that is meant to make the whole network run better and encourage people to provide liquidity.
The AER and REV engines will keep liquidity revenue inside the system, which will lower expenses and increase protocol earnings. Dromos that the renovation may boost profits by 40% and save costs by about $34 million a year.
Some of the new features are “Metaswaps” for simple trade between chains, verified institutional pools for compliance, and better compatibility with networks that use the ETH virtual machine.
These technical improvements aim to make Aero one of the most scalable systems in DeFi, capable of handling substantial trading volumes across various blockchain setups.
Planned Growth in ETH and Arc
Aero Network will be the primary source of liquidity for on-chain economies. It will interact closely with key networks and Circle’s Arc blockchain. This job aims to provide Aero with a more substantial foundation for new developer tools, high-yield projects, and infrastructure that meets the needs of businesses.
Aerodrome is currently the largest provider of liquidity on Base, collecting approximately $14.7 million in monthly fees and accounting for most of the network’s liquidity.
The unified platform, along with Velodrome, has a total value locked of over $480 million, which is likely to increase as integration with ETH and institutional channels accelerates.
Industry Impact and Future Outlook
Analysts say that the advent of the Aero Network could redefine the way decentralized platform infrastructure works. Aero aims to accommodate $2 billion or more in monthly trade volume across various chains by establishing a single, highly flexible liquidity mechanism.
Aero Network is poised to set new standards for scalability, liquidity aggregation, and cross-network opportunities in by consolidating development efforts, enhancing token utility, and expanding the network’s reach.
The merger is a large step forward for decentralized platforms. It focuses on making governance easier, adding value for stakeholders, and ensuring that both retail and institutional parts of the ecosystem can utilize it efficiently.
