Aerodrome Finance (AERO) is the native token of Aerodrome, a decentralized exchange and liquidity marketplace built on Base, Coinbase's Ethereum layer-2 network.
The protocol lets users trade tokens, supply liquidity, and vote on how weekly incentive emissions are distributed across trading pools. It launched on 28 August 2023 using Velodrome Finance's ve(3,3) codebase, adding automated vote-escrow (veNFT) management, customizable pools, and concentrated liquidity via a feature called Slipstream. As of 2026-08-31, AERO trades near $0.4765 with a market capitalization of approximately $465 million.
Aerodrome operates a vote-escrow (ve(3,3)) model that directs 100% of trading fees to veAERO holders who vote to steer liquidity incentives, aligning liquidity providers with long-term token holders.
As of 30 August 2026, the protocol holds $326.3 million in total value locked. On 24 August 2026, Coinbase selected Aerodrome as the primary liquidity provider for its newly launched tokenized U.S. tech-stock trading on Base.
AERO functions as both a governance and utility token.
Holders lock AERO to receive veAERO, a non-transferable position that grants voting power over which liquidity pools receive weekly emissions and a proportional claim on protocol trading fees. Locking, rather than simple spending, is AERO's primary use: it ties holding directly to weekly governance votes over incentive emissions and to a share of protocol revenue distributed to veAERO voters.
Circulating supply is approximately 982.69 million AERO as of 2026-08-31, with a fully diluted valuation of roughly $930 million.
Net issuance is therefore inflationary in absolute terms but disinflationary in rate over time.
Aerodrome Finance launched on 28 August 2023 with backing from Velodrome, the Base team, and roughly 20 ecosystem partners; there was no ICO and no VC token sale.
Dromos Labs states it took no venture funding and sold no tokens. Initial supply was 500 million AERO, with 90% (450 million) locked as veAERO at launch. Velodrome's existing veVELO holders received an airdrop equal to 40% of AERO's initial supply, proportional to their veVELO holdings, reflecting Aerodrome's origin as a Velodrome-lineage project.
AERO is deployed on Base, Coinbase's Ethereum layer-2 network.
Base is an OP Stack optimistic rollup that batches transactions and posts data to Ethereum mainnet, inheriting Ethereum's proof-of-stake security and validator set rather than running its own independent consensus mechanism. Aerodrome itself is a smart-contract protocol on Base and does not operate separate validators or block production.
Aerodrome Finance was co-founded by Alex Cutler ("wagmiAlexander") and Tao Watts ("taowatts").
Cutler previously worked in political campaigns before moving into DeFi through Curve and Solidly, joining Fantom's veDAO, where he met Watts and other future Velodrome contributors. Watts's background is in economics and asset management. The same team also built Velodrome Finance, a decentralized exchange on Optimism, using largely the same technology stack and personnel.
Core development is handled by Dromos Labs, the contributing development company behind both Aerodrome and Velodrome.
Protocol disclosures are made through the Aerodrome Foundation, a Cayman Islands entity registered on 18 August 2023; Velodrome operates a separate, parallel foundation. Luis A. de la Cerda serves as executive director of both. Dromos Labs states it has taken no venture capital funding and sold no tokens, describing itself as self-funded. In November 2025, Dromos announced plans to merge Aerodrome and Velodrome into a single unified protocol.
AERO governance runs on-chain through a vote-escrow (ve(3,3)) model.
Locking AERO produces veAERO, which grants voting power over weekly gauge emissions and a claim on protocol fees, with 100% of trading fees directed to voting veAERO holders. Governance has been shifting toward full veAERO-voter control of emissions and rebases, and in July 2026 Aerodrome replaced weekly gauge voting with an AI-driven predictive allocation model for distributing incentives.
Aerodrome has not completed a named third-party smart-contract audit from a major security firm.
CertiK's Skynet lists a Score of 85.61 (Grade A) based on contract verification and GitHub activity but explicitly notes the project is "Not Audited By CertiK" and has no CertiK-listed bug bounty. An earlier DeFiSafety review from shortly after the 2023 launch scored 0%, citing an absence of independent audits. Holder concentration is high: the top 10 addresses hold roughly 68% of supply, largely reflecting veAERO locking and treasury contracts rather than speculative wallets.