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aero

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first_img Aerodrome and Velodrome merged to launch the Aero spot exchange across the Seven Network

Decentralized exchange Aerodrome Finance (AERO) and Velodrome announced their official merger, launching the on-chain spot exchange Aero, deployed on seven networks: Ethereum mainnet, Base, Robinhood Chain, Ink, OP Mainnet, Arc, and Arbitrum, aiming to integrate the existing businesses of the two DEXs into a unified platform. The exchange is developed by Dromos Labs.According to a statement released on Wednesday, Aerodrome accounted for 58% of DEX trading volume on Base in the third quarter, while Velodrome accounted for 60% on OP Mainnet, with Aerodrome leading all DEXs in Bitcoin-USD trading volume during the same period. The new exchange extends this model to seven networks, which collectively handle approximately $120 billion in DEX trading each month. Alex Cutler, founder and CEO of Dromos Labs, stated that Aerodrome and Velodrome prevailed because the model is more beneficial to users, bringing Aero to the largest market on-chain, with 100% of the revenue generated returned to users staking AERO.As part of the merger, existing AERO and VELO tokens will migrate to the new AERO token, with veAERO and veVELO converting to sAERO. Aero introduces a new economic system, with the core feature Predictive Allocation allowing participants to stake AERO and direct liquidity reward budgets to markets expected to generate returns. Additionally, Aero launches Metaswaps, connecting cross-network transactions using existing on-chain liquidity; the Slipstream V3 upgrade introduces a dynamic fee mechanism that increases fees during rapid market fluctuations and captures MEV on supported Layer 2 networks.

first_img Aero announced the merger terms of Aerodrome and Velodrome, starting on October 21

Aero announced the token exchange terms and schedule for the merger of Aerodrome and Velodrome. The merger will start on October 21 at 20:00 (Eastern Time), at which point the token emissions of the two old platforms will cease. Existing AERO will be exchanged at a 1:1 ratio for the new AERO, with each VELO exchanging for approximately 0.044 AERO. This ratio applies to both circulating tokens and locked tokens. The exchange rate for VELO depends on the supply at the time of launch, with Aerodrome holders receiving 94.5% of the new supply and Velodrome holders receiving 5.5%.According to DefiLlama data, as of October 9, the total locked amount for the two exchanges is approximately $422 million. The merger was announced in November 2025, and the developers, Dromos Labs, originally planned to complete it in the second quarter of 2026. The new model replaces the original weekly voting cycle with real-time allocation, allowing staked AERO (sAERO) holders to direct rewards to the liquidity pool and accumulate earnings along with exchange revenue. There is an initial 47-hour cooling period for allocation adjustments.Existing veAERO and veVELO positions will be converted to new sAERO positions, with the remaining lock-up time carried over and rounded up to the nearest whole week, and permanent locks will convert to the longest staking period. Tokens will not be automatically exchanged; self-custodied assets must be managed through the upgrade portal at aerodrome.finance or velodrome.finance, and rewards and rebases must be claimed and active votes cleared first.
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