Aerodrome and Velodrome Finalize Merger, Launch Multi-Chain Protocol ‘Aero’

In a significant move for the DeFi landscape, protocols Aerodrome and Velodrome have officially merged and commenced operations under the unified brand ‘Aero’. The new protocol has launched simultaneously across seven major blockchains including Base, Ethereum Mainnet, and OP Mainnet, marking a pivotal step in its multi-chain expansion strategy.

Token Conversion and Distribution Details

Following the merger, existing AERO tokens will be converted to the new AERO token on a 1:1 basis. Holders of VELO tokens will see their holdings converted at a ratio of approximately 1 VELO to 0.044 new AERO. It is estimated that the former Aerodrome community will hold roughly 94.5% of the new token's total supply, with the former Velodrome community holding about 5.5%.

Users should note that token emissions from the legacy protocols have ceased. Those with self-custodied tokens must manually migrate via the official portal—an irreversible process. Users on supported centralized exchanges will typically have their conversions handled automatically.

Three Major Overhauls to Core Tokenomics

The merger represents more than a branding change; it involves a substantial restructuring of the underlying token economic model, centered on three key innovations:

  • Emission Mechanism Reform: New token emissions will be directly tied to protocol revenue, moving away from fixed emission schedules to create a more sustainable incentive structure.
  • Introduction of Transferable Staked Token sAERO: The protocol is launching sAERO, a transferable staked token. Unlike previous models, sAERO balances will not auto-accrue, offering users greater flexibility.
  • Governance Mechanism Upgrade: The traditional weekly vote governance model will be replaced by a novel "Predictive Allocation" mechanism, expected to enhance governance efficiency and optimize liquidity incentive distribution.

Merger Objectives and Market Outlook

Prior to the merger, the Aerodrome and Velodrome protocols had collectively generated over $500 million in yields for their users. The core objective of this consolidation is to triple Aero's addressable market share within the EVM ecosystem's spot trading volume. This growth is intended to be driven by its innovative Metaswaps feature and tailored incentive programs for liquidity providers across each supported chain.