What is Aerodrome? Aerodrome is an outstanding AMM platform built and developed by the Velodrome team on Base. So what is interesting about Aerodrome and is it really worth the investment? Let’s find out together in the article below.
To better understand Aerodrome, people can refer to some of the articles below:
- What is Base? Base Cryptocurrency Overview
- What is Optimism (OP)? Overview of Cryptocurrency Optimism
- What is Velodrome (VELO)? Velodrome Cryptocurrency Overview
Aerodrome Overview
What is Aerodrome?
Aerodrome is an AMM platform designed to become a Liquidity Hub for the entire Base ecosystem along with a Liquidity Mining program, veToken governance model creating a ve-oriented AMM. (3,3) complete. In fact, Aerodrome is a fork of Velodrome on Optimism with some features such as:
- Stable Pool: A trading pool for peer-to-peer assets such as Stablecoins, wrapped assets, LST (Tokens issued by LSD protocols),…
- Volatile Pool: A trading pool for common assets such as BTC – USDC, ETH – USDC, Altcoin – USDC, Altcoin – DAI, Altcoin – USDT,…
Aerodrome has quickly reached hundreds of millions of TVL since its launch on Base and received great attention from the community.
The Aerodrome Difference
The special thing about Aerodrome lies in the ve (3,3) combination of Liquidity Mining and protocol governance rights (equivalent to holding veAERO). One of the concepts we need to understand is:
- Bribe: Is the reward that third parties pay to veAERO Holders to vote on their behalf.
- Emissions: Is the reward that Aerodrome pays to LPs for participating in providing liquidity.
With tick (3,3), Aerodrome will create a flyweel as follows:
- Step 1: Traders when trading on Aerodrome will have to pay transaction fees.
- Step 2: This transaction fee will be returned to veAERO Holder.
- Step 3: LPs providing liquidity will receive emissions as AERO based on the amount of veAERO they hold.
- Step 4: If LP wants to receive more emissions, it must increase the amount of AERO it holds. If they want to increase instead of buying, they will have to lock the AERO they receive.
- Step 5: If you want to maximize AERO, you must lock in 4 years to get the rate of 1 AERO = 1 veAERO.
A flyweel allows the amount of AERO released into the market to be immediately returned to the protocol, thereby causing AERO to increase in price because of the reduced supply. AERO price increase leads to Incentive becoming more valuable followed by more LPs joining the protocol and we return to step 3.
Development Roadmap
Update…
Investor
Aerodrome is a tick project (3,3) so there will be no participation from investment funds.
Core Team
Aerodrome was built by the Velodrome team itself. The Velodrome team is an anonymous team.
Tokenomics
Information about Aerodrome tokens
- Project name: Aerodrome
- Token code: AERO
- Standard: ERC 20
- Smartcontract: 0x940181a94A35A4569E4529A3CDfB74e38FD98631
- Blockchain: Base
- Total supply: 500,000,000
Token Allocation
Aerodrome has 2 tokens: AERO and veAERO (locked version of AERO).
AERO
- Voters Incentives: 8%
- Genesis Liquidity Pool: 2%
veAERO
- Airdrop: 40%
- Ecosystem Pool: 21%
- Core Team: 14%
- Protocol Grants: 10%
- AERO Pools Votepower: 5%
Token Release
AERO will be distributed into different phases including:
- Take off: Within 14 weeks (equivalent to 14 epochs) the inflation rate is 3% per week.
- Cruise: After 14 weeks the inflation rate will remain at 1% per week.
- Aero FED: Around the 67th era (week 67), veAERO will now have the right to coordinate the inflation rate. There will be 3 options for veAERO Holders in each era including:
- Increase emissions by 0.01% of total supply or 0.52% per year.
- Reduce emissions by 0.01% of total supply or 0.52% per year.
- Maintained and unchanged.
Token Use Case
Users can lock AERO to receive veAERO from 4 weeks to 4 years to receive benefits such as:
- Protocol transaction fees.
- Protocol administrator rights.
- Bribe.
- Amount of token emissions.
Exchanges
Currently, AERO is only traded on a number of DEX exchanges on the Base ecosystem.
Project Information Channel
- Twitter: https://twitter.com/aerodromefi
- Medium: medium.com/@aerodromefi
- Discord: http://discord.gg/aerodrome
- Website:
Summary
Aerodrome is one of the prominent AMMs and is fully capable of becoming a Liquidity Hub on the Base ecosystem.