We’re excited to announce that AERO, the governance and utility token of Aerodrome Finance, is now available on Bitso!
Built on Base, an Ethereum Layer 2 network developed by Coinbase, Aerodrome Finance is the central liquidity hub for the ecosystem. It offers optimized trading, liquidity pools, and governance mechanisms designed to empower the community.
What is Aerodrome Finance?
Aerodrome Finance is a decentralized automated market maker (AMM) and liquidity platform designed to be the core liquidity layer for Base. Aerodrome is built using the same advanced infrastructure as Velodrome V2, a next-generation decentralized exchange on Optimism, bringing advanced features such as:
- Concentrated liquidity pools to optimize capital efficiency.
- Customizable pool fees, allowing flexibility for different liquidity strategies.
- veNFT governance, a unique vote-escrowed NFT system used for directing token emissions.
Since its launch in August 2023, Aerodrome has become a key DeFi platform on Base, attracting liquidity providers, traders, and protocols seeking efficient liquidity solutions.
How does Aerodrome work?
- Liquidity provision: Users add assets to liquidity pools by pairing AERO with other supported tokens and receive LP tokens in return.
- Staking and emissions: LP tokens can be staked to earn AERO emissions, distributed via the veAERO (vote-escrowed NFT) system.
- Governance via veAERO: Users can lock AERO for durations from 7 days to 4 years in exchange for veAERO. The longer the lock, the more veAERO they receive, and the more voting power they gain.
- Vote-directed emissions: AERO holders vote to allocate AERO emissions across liquidity pools each epoch (one-week period), incentivizing the pools they support.
- Trading fees: 100% of protocol trading fees are distributed back to veAERO holders, rewarding active governance participation.
Real-world example: Engaging in liquidity provision with ease
Diego holds USDC (Digital Dollars) and ETH on Base and wants to earn rewards from them. Instead of holding these assets passively, Diego uses Aerodrome:
- He adds liquidity to the USDC-ETH pool and receives LP tokens.
- He stakes those LP tokens to start earning AERO emissions.
- He locks his earned AERO for veAERO, gaining voting power and a share of trading fees.
- Each week, he votes to direct emissions toward the USDC-ETH pool, boosting his rewards.
This cycle of providing liquidity, earning emissions, and participating in governance creates a dynamic, user-driven liquidity environment.
What is AERO used for?
AERO is the governance and utility token of Aerodrome Finance, fulfilling multiple key roles::
- Liquidity incentives: Granted to liquidity providers through AERO emissions.
- Governance via veAERO: Locking AERO gives users veAERO NFTs, allowing them to vote on emission allocations and influence the protocol development.
- Fee rewards: 100% of trading fees are distributed to veAERO holders.
Why Aerodrome stands out
- Base’s core liquidity layer: Aerodrome is the central AMM on Base, providing liquidity to the ecosystem.
- Governance with real influence: veAERO holders control emissions and fee distribution.
- Fair launch: No token sales to VCs or early unlocks—AERO was distributed via emissions and community programs.
- Proven technology: Built on Velodrome V2 stack, a system successfully deployed and tested on Optimism.
How to get started with AERO on Bitso
- Sign up on Bitso: Create your account through our app or website.
- Buy AERO: Swap your Digital Dollars (USDC) for AERO using Bitso’s conversion feature.
- Track the market: Use Bitso’s tools to monitor AERO price movements and governance updates.
⚠️ For now, AERO is only available for conversions on Bitso. This means you can buy and sell AERO, but deposits and withdrawals to external wallets are currently disabled. However, you can still send and receive AERO with other Bitso users via Bitso Transfer.
Disclaimer
AERO is the governance and utility token of Aerodrome Finance, a decentralized liquidity hub built on the Base network. While the platform introduces advanced features like vote-directed emissions, veNFT-based governance, and concentrated liquidity, the value of AERO remains speculative and is influenced by market dynamics and participation within the Aerodrome ecosystem.
The digital asset market is inherently volatile, and prices can fluctuate significantly over short periods of time. This article is intended for informational purposes only and does not constitute financial advice. Bitso encourages all users to conduct their own research (DYOR) before buying, selling, or using any digital asset.
