Aerodrome dominates Base. With $500M+ in TVL and over 55% of the chain's DeFi liquidity, it's not just a DEX — it's the liquidity infrastructure that other Base protocols build on. But is the ve(3,3) model actually worth the complexity? And how does the Velodrome merger change things?
Summary of this Aerodrome review: Aerodrome Finance is the leading decentralized exchange on Base, Coinbase's Layer-2 network. Launched in August 2023, it has processed over $238 billion in cumulative trading volume and maintains ~$500M TVL. The protocol uses the ve(3,3) model: lock AERO tokens for veAERO voting power, vote on pool emissions weekly, and earn 100% of trading fees from pools you support. In January 2026, Aerodrome merged with Velodrome to form "Aero" under Dromos Labs, creating unified liquidity across the Superchain.
The ve(3,3) flywheel works: protocols deposit bribes to attract liquidity, veAERO holders vote for their pools, emissions attract LPs, deep liquidity generates more fees, and the cycle continues. It's elegant game theory that aligns everyone's incentives — but it's also complex enough to confuse beginners.
For casual swaps, you don't need Aerodrome's full power — Uniswap or aggregators work fine. But for serious LP work on Base, protocol liquidity needs, or governance participation with fee capture, Aerodrome is the clear choice. The Velodrome merger extends this to Optimism, making Aero the liquidity hub for the entire Superchain ecosystem.
Aerodrome Review — What is Aerodrome Finance?
Aerodrome launched in August 2023 as "Velodrome for Base" — built by the same team, using Velodrome V2's battle-tested codebase. It combines three DeFi primitives:
- Curve's StableSwap: Low-slippage swaps for pegged assets (0.05% fee) - Uniswap's Constant Product AMM: Standard swaps for volatile pairs (0.30% fee) - Convex-style Vote Locking: Lock tokens for governance power and fee capture
Key Facts (Updated February 2026): - Launched: August 2023 - Chain: Base (Coinbase L2) + Superchain via Aero merger - TVL: ~$500-600M (55-60% of Base DeFi) - Cumulative Volume: $238B+ - Weekly Volume: ~$2B - Token: AERO — ~$0.58, ~910M circulating - Model: ve(3,3) (vote-escrowed tokenomics)
Who is Aerodrome for? - LPs seeking yield on Base (emissions + bribe rewards) - Protocols needing deep liquidity (bribe system) - Governance participants wanting 100% fee capture - Long-term AERO believers willing to lock tokens
Who should skip Aerodrome? - Casual swappers (use Uniswap or aggregators) - Beginners unfamiliar with ve(3,3) mechanics - Short-term traders who won't lock tokens
Aerodrome Review — How Does ve(3,3) Work?
The ve(3,3) model is Aerodrome's core innovation. Here's the simple version:
Step 1: Lock AERO for veAERO
- Lock AERO tokens for up to 4 years - Longer lock = more voting power (veAERO) - Your veAERO is a non-transferable NFT
Step 2: Vote on Pool Emissions
- Every Thursday (epoch reset), vote on which pools get AERO rewards - Your votes determine where emissions flow next week - Protocols bribe you to vote for their pools
Step 3: Earn Rewards
- Trading fees: 100% of fees from pools you voted for - Bribes: External rewards from protocols wanting liquidity - Rebase: Weekly token distribution to offset dilution
The Flywheel Effect
1. Protocol deposits bribes → 2. veAERO holders vote for their pool → 3. Pool gets AERO emissions → 4. LPs provide liquidity → 5. Deep liquidity = more trading volume → 6. More fees = higher bribe incentives → 7. Repeat
This is why Aerodrome dominates Base: the incentives compound.
Aerodrome Review — Fees: How Much Does Aerodrome Cost?
| Pool Type | Fee | Fee Destination |
| Volatile Pairs | 0.30% | 100% to veAERO voters |
| Stable Pairs | 0.05% | 100% to veAERO voters |
| Slipstream (CL) | Variable | 100% to veAERO voters |
Key difference from other DEXs: LPs don't earn trading fees directly. Fees go to veAERO voters. LPs earn AERO emissions instead.
Cost Comparison — $10,000 swap:
| DEX | Fee | Gas (Base L2) | Total |
| Aerodrome (volatile) | $30 | ~$0.05 | ~$30.05 |
| Aerodrome (stable) | $5 | ~$0.05 | ~$5.05 |
| Uniswap V3 (0.05%) | $5 | ~$0.05 | ~$5.05 |
| Hyperliquid | N/A | $0 | N/A (perps only) |
For stablecoin swaps, Aerodrome's 0.05% stable pools match Uniswap's best tier. For volatile pairs, 0.30% is standard.
Aerodrome Review — The Velodrome Merger (Aero)
In January 2026, Aerodrome and Velodrome merged under "Dromos Labs" to create a unified platform:
What changed: - Unified brand: Now called "Aero" - Cross-chain access: Single interface for Base + Optimism liquidity - Shared governance: veAERO and veVELO coordinate across chains - Superchain expansion: Positioned for additional OP Stack chains
What this means for users: - More liquidity depth (combined pools) - Simpler multi-chain experience - Stronger protocol position against competitors
This merger makes Aero the default liquidity layer for the Superchain ecosystem — not just Base.
Aerodrome Review — Security
Audit History
Aerodrome inherits Velodrome V2's security:
| Auditor | Scope | Date |
| Spearbit | Velodrome V2 | June 2023 |
| Code4rena | V1 + V2 review | May 2022, 2023 |
| Internal | Slipstream (CL) | April 2024 |
Track Record
- No major exploits since August 2023 launch - 2+ years of operation on Base - Shared codebase with Velodrome (battle-tested since June 2022)
Bug Bounty
- Immunefi program: up to $100,000 for critical vulnerabilities
Risk Factors
- Smart contract risk: Complex ve(3,3) mechanics increase attack surface - L2 dependency: Relies on Base network security - Centralization: Some owner controls in contracts; top wallets control significant veAERO
Our Security Rating: 4.4/5 — Strong audit coverage and clean track record, but ve(3,3) complexity and L2 dependency prevent a higher score.
Aerodrome Review — Aerodrome vs Uniswap vs Velodrome
Aerodrome vs Uniswap on Base
| Factor | Aerodrome | Uniswap |
| Base TVL Dominance | 55-60% | ~15-20% |
| Fee Model | Fees to voters | Fees to LPs |
| LP Rewards | AERO emissions | Trading fees only |
| Governance | ve(3,3) voting | UNI governance |
| Complexity | High | Low |
| Best For | Yield farming | Simple swaps |
Verdict: Use Aerodrome for LP yield and governance participation. Use Uniswap for simple, quick swaps without the ve(3,3) overhead.
Aerodrome vs Velodrome
| Factor | Aerodrome | Velodrome |
| Chain | Base | Optimism |
| TVL | ~$500-600M | ~$200-300M |
| Launch | August 2023 | June 2022 |
| Pool Creation | Permissioned | Permissionless |
| Maturity | Newer, faster growth | More established |
Verdict: Same team, same model. Choose based on which chain you're active on. Post-merger, use Aero for unified access.
Best Alternatives
- For simple swaps: Uniswap — less complexity - For perpetuals: Hyperliquid — different use case entirely - For Solana: Orca or Raydium - For stablecoins: Curve — still the stablecoin king
Aerodrome Review — AERO Tokenomics
Initial Distribution (500M AERO)
| Allocation | % | Notes |
| veVELO Airdrop | 40% | Locked as veAERO |
| Ecosystem/Public Goods | 25% | Locked as veAERO |
| Team | ~12% | 2-4 year vesting |
| Protocol Grants | ~8% | veAERO |
| Genesis Liquidity | 2% | Liquid AERO |
| Voting Incentives | ~3% | Liquid AERO |
Key: 90% distributed as locked veAERO — strong alignment with long-term holders.
Emission Schedule
- Phase 1 (Epochs 1-14): 10M→15M AERO/week (3% weekly increase) - Phase 2 (Epoch 15+): 1% weekly decay - Phase 3 (Epoch 67+): Aero FED — veAERO voters control monetary policy
The Aero FED mechanism lets governance adjust emissions between 0.52% and 52% annualized. This is sophisticated monetary policy for a DEX.
Current Stats
- Circulating: ~910M AERO - Price: ~$0.58 - Market Cap: ~$530M
Conclusion: Should You Use Aerodrome?
Aerodrome is the undisputed liquidity king of Base. If you're active on Base and understand ve(3,3), there's no better option for LP yield or governance participation.
Use Aerodrome if: - You're providing liquidity on Base - You want 100% fee capture through voting - You're a protocol needing deep liquidity - You're willing to lock AERO long-term
Skip Aerodrome if: - You just want simple token swaps (use Uniswap) - You're a beginner unfamiliar with ve(3,3) - You want immediate liquidity (can't wait for unlock) - You're not on Base or Optimism
Our Rating: 4.5/5
Bottom Line: Aerodrome delivers the most capital-efficient liquidity infrastructure on Base. The ve(3,3) complexity is the price of admission — but for those who understand it, the rewards are substantial. The Velodrome merger (Aero) extends this to the entire Superchain, making it even more compelling for 2026.
For perpetual trading, see our Hyperliquid Review. For Optimism specifically, see our coverage of the merged Velodrome platform.
Frequently Asked Questions
Is Aerodrome Finance safe?
Aerodrome inherits Velodrome V2's audited codebase with reviews from Spearbit and Code4rena. No major exploits since the August 2023 launch. The protocol has a bug bounty up to $100K on Immunefi. Main risks include smart contract complexity from the ve(3,3) model and dependency on Base network security. Over 2 years of operation without incident is a positive signal.
What are Aerodrome fees?
Trading fees are 0.30% for volatile pairs and 0.05% for stable pairs. Slipstream (concentrated liquidity) pools have variable fees. Unlike most DEXs, 100% of trading fees go to veAERO voters — not to LPs directly. LPs earn AERO token emissions instead. There's no protocol fee take.
How do I earn yield on Aerodrome?
Two paths: (1) Provide liquidity to pools and earn AERO emissions, or (2) Lock AERO for veAERO, vote on pools, and earn 100% of trading fees from pools you support plus external bribes. The second path typically yields more for long-term participants but requires locking tokens.
What is the difference between Aerodrome and Velodrome?
Same team, same ve(3,3) model, different chains. Aerodrome is on Base; Velodrome is on Optimism. In January 2026, they merged under "Dromos Labs" to create "Aero" — a unified platform for Superchain liquidity. Choose based on which chain you're active on, or use Aero for cross-chain access.
Can I use Aerodrome in the US?
Aerodrome is a decentralized protocol accessible globally. There are no explicit geo-restrictions in the smart contracts. However, users should verify compliance with their local regulations before using DeFi protocols. The protocol does not require KYC.
What is the Aero FED?
Starting at Epoch 67, veAERO holders vote on monetary policy — they can increase, decrease, or maintain AERO emission rates within a 0.52% to 52% annualized range. This gives governance direct control over token inflation, similar to a central bank but decentralized.