Aerodrome Finance

Aerodrome Finance is an automated market maker and decentralized exchange running on Base, the Ethereum layer-two network developed by Coinbase. The project is built on the codebase of Velodrome on the Optimism network and aims to be a central source of liquidity for tokens in the Base ecosystem. AERO is the protocol's rewards and governance token.

Aerodrome uses a vote-escrow model. By locking AERO for a set period, users receive voting power in the form of a transferable NFT called veAERO. In each epoch, veAERO holders vote on which liquidity pools will receive new AERO rewards; in return, they collect the trading fees of the pools they voted for and the incentives offered by projects. Liquidity providers, in turn, earn the AERO rewards directed to the pools. Alongside classic pools, there are also Slipstream pools that offer concentrated liquidity.

The main factors affecting the AERO price are trading volume on the Base network, the trend in the amount of locked AERO, supply pressure from new reward emissions and competition with rival decentralized exchanges. The Lzzo.com page presents the Binance AERO/USDT price for Aerodrome Finance converted into dollars at Coinbase Exchange's USDT/USD rate and draws the chart from this series.