Aerodrome and Velodrome Merge Into Aero DEX on 7 Chains

Dromos Labs has launched Aero, a single decentralized exchange formed by merging Aerodrome and Velodrome. The Block reports that the platform went live on Oct. 21 across seven networks: Ethereum mainnet, Base, Robinhood Chain, Ink, OP Mainnet, Arc and Arbitrum.

Details

The launch was scheduled for 8:00 PM ET on Oct. 21. Under the merger terms, existing AERO tokens convert to the new AERO 1:1, while VELO converts at 0.044 AERO per token. Aerodrome holders receive 94.5% of the new supply and Velodrome holders 5.5%. veAERO and veVELO positions become sAERO.

The headline feature is "Predictive Allocation": AERO stakers direct the liquidity-rewards budget toward markets they expect to earn the most revenue. Rewards are reallocated in real time instead of through weekly votes. The Block also lists Metaswaps for cross-network trading and Slipstream V3 with dynamic fees. Dromos Labs founder and CEO Alex Cutler said 100% of the revenue Aero earns goes to people who stake AERO.

Combined TVL of the two platforms was about $422M as of Oct. 9, according to KuCoin News. Users who self-custody assets must migrate manually through the upgrade portals at aerodrome.finance or velodrome.finance, after claiming rewards and clearing active votes.

What it means for the market

Aerodrome has been a key liquidity hub on Base and Velodrome on OP Mainnet. The merger pools their liquidity into one protocol and takes it to Ethereum and Circle's Arc, where DEX competition is tougher. How the AERO token trades after the launch will become clear in the coming days; live prices are in the daily brief and on the Ethereum page.

This is not investment advice.