Aero

Aero (AERO) is the native utility and reward token of Aero, a decentralised exchange (DEX) that supports cryptocurrency trading and liquidity provision across Ethereum and compatible blockchain networks. Aero was formed by combining Aerodrome Finance, which operated on Base, and Velodrome Finance, which operated primarily on OP Mainnet, into a single protocol.

Launched on 22 October 2026 (UTC), Aero initially operated across seven networks: Ethereum, Base, Arbitrum, OP Mainnet, Ink, Arc and Robinhood Chain. The exchange uses an automated market maker (AMM) system that allows users to trade digital assets through liquidity pools. It also supports cross-chain swaps, allowing trades to be routed between supported networks.

AERO is used to reward liquidity providers and coordinate the distribution of incentives across these pools. The token can also be staked to participate in liquidity allocation and receive a share of exchange revenue. The new AERO token was introduced without a separate public token sale or venture capital token allocation. Its initial supply was allocated to existing Aerodrome and Velodrome token holders, with 94.5% assigned to Aerodrome holders and 5.5% to Velodrome holders through the migration process.

AERO is primarily used for liquidity incentives, staking and the distribution of exchange revenue.

Liquidity providers deposit digital assets into Aero's trading pools to support token exchanges. Eligible liquidity providers can receive AERO rewards in exchange for supplying liquidity. These rewards are distributed continuously, with allocation levels determined by the protocol's incentive system.

AERO holders can also stake their tokens to receive sAERO, which represents a staked position held as a transferable non-fungible token (NFT). Through a mechanism called Predictive Allocation, sAERO holders direct AERO rewards towards selected liquidity pools across supported networks. In return, they receive a proportional share of the exchange revenue generated by the pools they support.

The allocation system replaces the weekly voting cycles previously used by Aerodrome and Velodrome. It allows sAERO holders to adjust their allocations subject to a cooldown period, while rewards and revenue accrue continuously. This connects AERO staking to the distribution of liquidity incentives and trading activity across the protocol.

Aero was developed by Dromos Labs, a blockchain development company founded and led by Alexander Cutler, its chief executive officer. Dromos Labs also developed Aerodrome Finance and Velodrome Finance, the two decentralised exchanges that were combined to create Aero.

Aerodrome Finance launched on Base in August 2023, building on the economic model established by Velodrome Finance. In October 2026, the two protocols were combined under Aero, bringing their liquidity infrastructure and token systems together.