Aerodrome and Velodrome have officially completed their merger to debut Aero, a decentralized spot trading platform operating on the Ethereum mainnet, Base, Robinhood Chain, Ink, OP Mainnet, Arc, and Arbitrum.
Aerodrome Finance (AERO) and Velodrome, prominent decentralized exchanges on Base and OP Mainnet respectively, have joined forces to introduce Aero, a cross-network onchain spot exchange spanning seven different environments.
Based on a Wednesday announcement, Aero is going live across the Ethereum mainnet, Base, Robinhood Chain, Ink, OP Mainnet, Arc, and Arbitrum, with the objective of consolidating both decentralized exchanges’ previous activities into a single ecosystem.
The developers stated that the fresh trading venue expands upon the foundational framework that previously drove the expansion of both Aerodrome and Velodrome. The announcement noted that Aerodrome generated 58% of all decentralized exchange trading volume on Base during the third quarter, whereas Velodrome captured 60% of the volume on OP Mainnet. Furthermore, Aerodrome topped all decentralized exchanges in bitcoin-dollar trading activity over that same period.
The creators mentioned that the updated exchange enhances that original framework and scales it across seven networks that collectively process roughly $120 billion in monthly decentralized exchange trading.
Alex Cutler, founder and chief executive officer of Dromos Labs, the development entity behind Aero, stated that every market is transitioning onchain, and any corporate entity translatable into software will become so, adding that institutional margins represent their potential.
Cutler further remarked that Aerodrome and Velodrome succeeded because their underlying structure delivers superior outcomes for participants, and noted that Aero brings that same mechanism to major onchain markets while returning all generated revenue directly to AERO stakers.
According to the publication, the consolidation will see current AERO and VELO tokens transition into a unified AERO asset, whereas veAERO and veVELO positions will transition into sAERO.
Liquidity allocation
The developers announced that Aero has implemented an innovative financial architecture meant to encourage liquidity providers and compensate the staked AERO participants who manage the ecosystem.
In particular, its core mechanism, known as Predictive Allocation, enables users to stake AERO and allocate rewards budgets toward trading pools they anticipate will produce revenue.
Additionally, Aero is rolling out Metaswaps, a feature built to link trading activity across multiple networks leveraging its native onchain liquidity.
The announcement added that another enhancement, Slipstream V3, implements dynamic transaction costs that increase during periods of high market volatility, alongside maximal extractable value capture on compatible Layer 2 networks.
Originally published at https://www.theblock.co/news/defi/2026-10-21-aerodrome-velodrome-merge-aero-421514.
