Dromos Labs—the team behind both decentralized exchanges (DEXs)—announced the merger of Aerodrome on Base and Velodrome on Optimism’s Superchain into a single, next-generation protocol named Aero.
This move aims to consolidate liquidity, streamline governance, and expand across the Ethereum ecosystem, positioning Aero as a “unified trading platform for the entire onchain economy.”
The announcement has generated significant buzz in DeFi circles, with discussions highlighting its potential to rival giants like Uniswap by capturing fragmented liquidity in a more efficient, cross-chain setup.
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Aero is slated for a full rollout in Q2 2026, initially deploying on Ethereum Mainnet and Circle’s new Layer 1 blockchain, Arc currently in testnet. It will also support existing chains like Base, Optimism, and the OP Superchain, with plans for further expansions.
The existing AERO (Aerodrome) and VELO (Velodrome) tokens will merge into a single AERO token, with no new minting or dilution. Allocation is based on each protocol’s revenue share:~94.5% to current AERO holders.
~5.5% to current VELO holders. The new AERO will represent a share of Aero’s overall revenue and growth, including fees from trading, liquidity provision, and new features. Aerodrome and Velodrome will remain functional temporarily but will no longer receive support after Aero’s launch, encouraging users to migrate seamlessly.
Aero introduces an advanced architecture called MetaDEX 03, which enhances efficiency and revenue capture: Slipstream V3: An improved automated market maker (AMM) with internal MEV auctions to reduce losses from arbitrage bots and generate extra revenue.
MetaSwaps: A cross-chain aggregator for seamless trading across EVM-compatible chains without bridges or wrapped tokens.
REV and AER Engines: REV captures diverse revenue streams (e.g., aggregator fees, bridging, token launches), while AER algorithmically optimizes LP rewards in real-time, potentially boosting value creation by 2.8x for token holders through lower emissions and higher yields.
Additional features include institutional-grade tools like fee rebates, KYC-verified pools, and an “Autopilot” for automated voting/compounding. Aero enters the market with strong fundamentals from its predecessors:Metric
Data from DeFiLlama shows Aerodrome as Base’s top DEX by volume and TVL 4th overall on Base, while Velodrome ranks 3rd on OP Mainnet. The merger addresses DeFi’s fragmentation by creating a single liquidity layer, with backtested projections estimating up to $294M in net value for AERO holders via mechanisms like the “Momentum Fund”.
Many view this as a “banger” upgrade, praising the focus on onchain composability, institutional adoption, and tokenomics without VC dilution. Posts highlight Aero’s potential to dominate Ethereum’s liquidity hubs, with easy token launches and organic reward systems.
Some Aerodrome community members expressed bearish views on the token allocation, leading to a ~16% dip in AERO price shortly after the announcement. VELO holders, however, benefit from integration into a much larger ecosystem.
The news coincides with Uniswap’s “UNIfication” proposal to activate its fee switch and burn UNI tokens, intensifying DEX competition. Aero’s cross-chain ambitions, including Arc’s permissioned features, could appeal to institutions seeking compliant onchain trading.
This merger marks a pivotal evolution for Dromos Labs’ “MetaDEX” vision, blending Aerodrome’s dominance on Base with Velodrome’s Superchain roots into a scalable, revenue-optimized powerhouse. If you’re holding AERO or VELO, monitor official migration guides as Q2 2026 approaches.