Aerodrome Finance (AERO) is a next-generation automated market maker (AMM) designed to become the central liquidity hub on the Base blockchain. It is characterized by a vote-lock governance model and a powerful liquidity incentive engine, and it aims to provide a user-friendly experience. Aerodrome has introduced several innovative features derived from Velodrome V2 to improve liquidity and governance within its ecosystem.
The core of Aerodrome's ecosystem revolves around its native token, AERO, which serves both utility and governance purposes. AERO holders can lock their tokens for up to four years, receiving veAERO NFTs representing their governance stake. This mechanism is designed to reward users proportionally to the amount and duration of their token lock, encouraging long-term investment and stability within the Aerodrome ecosystem.
The governance model allows veAERO holders to vote on which liquidity pools should receive AERO emissions, with the emissions then distributed according to the votes. This system also supports a bribe mechanism, where external protocols can incentivize token liquidity by offering additional rewards.
Aerodrome's tokenomics are structured to support ecosystem growth and public goods on the Base blockchain, with a total supply of 500 million tokens, 450 million of which are dedicated to veAERO distribution. The project emphasizes a fair launch strategy without pre-sale or external investors. The allocation includes significant portions for ecosystem pairs, public goods, protocol grants, and incentives for AERO liquidity pools. The initial weekly emission is set at 10 million AERO, with an adaptive emission schedule designed to support rapid growth and adjust over time to ensure sustainable development.
The project stands out for its innovative approach to DeFi governance and liquidity incentivization, aiming to build a strong and vibrant ecosystem on the Base blockchain. Aerodrome Finance inherits and builds upon concepts from its predecessor, Velodrome, and other DeFi projects, positioning itself as a key player in the evolving landscape of decentralized finance.
