Aerodrome Finance is a next-generation AMM designed to serve as Base's central liquidity hub, combining a powerful liquidity incentive engine, vote-lock governance model, and friendly user experience. Aerodrome inherits the latest features from Velodrome V2. Aerodrome launched on 28th of August, 2023 on BASE network.
The protocol is designed to enable token swaps and generate fees (from Traders) by attracting liquidity. Every epoch liquidity providers (LPs) receive $AERO token emissions proportionally to the votes the pools accumulate. Only staked (in the protocol gauges) liquidity receive emissions.Participants can lock their $AERO to be able to vote on the next epoch distribution of emissions, becoming veAERO Voters. veAERO Voters are rewarded (proportionally to locked amounts) for their votes with 100% of the protocol trading fees from the previous epoch and any additional voters incentives from the current epoch.
Explore the tokenomics of Aerodrome Finance(AERO) and review the project details below.
What is the allocation for Aerodrome Finance(AERO)?
- 8% was allocated to Voters Incentives
- 2% was allocated to Genesis Liquidity Pool
- 40% was allocated to Airdrop for veVELO Lockers
- 21% was allocated to Ecosystem Pools and Public Goods Funding
- 14% was allocated to Aerodrome Team
- 10% was allocated to Protocol Grants
- 5% was allocated to AERO Pools Votepower
What is the supply schedule for Aerodrome Finance(AERO)?
The initial supply of $AERO is 500M, with 450M distributed as vote-locked ($veAERO) tokens.
Weekly emissions will being at 10M $AERO (2% of the initial supply). The emission schedule will follow three phases:
- Take-off: During the first 14 weeks (epochs), emissions will increase at 3% per week, allowing for rapid growth in protocol activity and partner onboarding.
- Cruise: After Epoch 14, emissions will decay at 1% per epoch, ensuring total supply inflation decreases over time as the protocol matures.
- Aero Fed: When emissions programmatically drop under 9M per epoch, approximately Epoch 67, veAERO voters will take control of Aerodrome's monetary policy through the Aero Fed system. Voters will collectively make one of three choices each epoch:
The winning vote will be determined by simple majority vote. If an Increase or Decrease is selected, the emission rate will change one full epoch after the vote. A max emission rate will be set at 1% of total supply per week (52% annualized) and a minimum rate at 0.01% per week (0.52% annualized).
Aerodrome Finance is a next-generation AMM designed to serve as Base's central liquidity hub, combining a powerful liquidity incentive engine, vote-lock governance model, and friendly user experience. Aerodrome inherits the latest features from Velodrome V2. Aerodrome launched on 28th of August, 2023 on BASE network.
The protocol is designed to enable token swaps and generate fees (from Traders) by attracting liquidity. Every epoch liquidity providers (LPs) receive $AERO token emissions proportionally to the votes the pools accumulate. Only staked (in the protocol gauges) liquidity receive emissions.Participants can lock their $AERO to be able to vote on the next epoch distribution of emissions, becoming veAERO Voters. veAERO Voters are rewarded (proportionally to locked amounts) for their votes with 100% of the protocol trading fees from the previous epoch and any additional voters incentives from the current epoch.