Two of the biggest decentralized exchanges in crypto have merged into one platform called Aero, launching at once on seven blockchain networks. Traders are watching closely because the two old exchanges together dominated trading on their home chains, and their tokens are now merging into a single new AERO token.
Key points:
• Aerodrome and Velodrome have officially merged to launch Aero, an onchain spot exchange on Ethereum, Base, Robinhood Chain, Ink, OP Mainnet, Arc and Arbitrum.
• Aerodrome held about 58% of DEX trading volume on Base in the third quarter, and Velodrome held about 60% on OP Mainnet, per the project.
• The existing AERO and VELO tokens will migrate to a new AERO token, and 100% of Aero's revenue goes to people who stake AERO.
A decentralized exchange, or DEX, is a trading platform that runs on blockchain code instead of a company holding users' coins. Aerodrome was the top DEX on Base and also led all DEXs in bitcoin-dollar trading volume in the third quarter, according to the project's Wednesday statement. The seven networks Aero is launching on together handle about $120 billion a month in DEX trading, the project said.
The token change is the part holders must understand. The old AERO and VELO tokens will migrate to the new AERO token, while veAERO and veVELO — the locked, vote-earning versions — will convert to sAERO. Dromos Labs, the team behind Aero, says every dollar of revenue the exchange earns goes back to AERO stakers, and founder Alex Cutler said the model that won on Base and OP Mainnet is now going to some of the biggest onchain markets.
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What happens next?
Aero adds three new tools: Predictive Allocation, which lets AERO stakers direct liquidity rewards toward markets they expect to earn the most; Metaswaps, designed to connect trading across networks; and Slipstream V3, with dynamic fees that rise when markets move fast and MEV capture on supported Layer 2 networks. Traders will now watch the token migration details and dates, whether trading volume follows Aero onto the new chains, and how the new AERO token trades once both old tokens combine into one.
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— Crypto News Daily News Desk
This post is news only, not financial advice. Always do your own research before buying or selling crypto.
Sources: The Block
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