Aerodrome and Velodrome have combined operations under a single platform called Aero, which went live across seven blockchain networks on October 21. The new onchain spot exchange, developed by Dromos Labs, aims to consolidate the two protocols’ positions on Base and OP Mainnet while extending activity to Ethereum mainnet, Arbitrum, Robinhood Chain, Ink and Arc.

According to the project, the seven networks collectively process about $120 billion in monthly decentralized exchange volume. Aerodrome previously accounted for 58 percent of DEX trading volume on Base in the third quarter, while Velodrome held 60 percent on OP Mainnet. The team stated that the earlier pair of chains represented roughly 17 percent of EVM spot volume and that the expanded set could roughly triple that reach.

Token Migration and Supply Structure

Existing AERO and VELO tokens convert into a unified AERO token. Holders of AERO receive new tokens on a one-to-one basis. Each VELO converts at a rate of 0.044 new AERO, calculated from projected supplies. Locked positions known as veAERO and veVELO migrate to sAERO, with remaining lock periods carried forward and rounded up to the next full week.

The new maximum supply is projected near 2.127 billion AERO. Of that amount, 94.5 percent is allocated to Aerodrome holders and 5.5 percent to Velodrome holders, matching each protocol’s share of combined revenue over the 52 weeks before the merger announcement. The conversion is not automatic. Users must complete the upgrade through dedicated portals, and the process cannot be reversed. Emissions on the prior protocols ceased at launch.

Aero launched without venture capital backing or a public token sale. The full new supply is directed to existing holders.

Revenue Model and New Features

All exchange revenue is distributed to holders of staked AERO, or sAERO. Dromos Labs CEO Alex Cutler said the platform continues the earlier model in which economic returns flow directly to participants.

Cutler added that Aero extends that approach to larger onchain markets and that 100 percent of the revenue earned returns to AERO stakers. The predecessors together distributed a reported $578 million to tokenholders.

A core addition is Predictive Allocation. sAERO holders can direct liquidity incentives toward markets they expect will generate trading revenue and then receive a corresponding share of that revenue. The system is designed to reward accurate forecasts of demand.

Additional infrastructure includes Metaswaps for cross-chain trades and Slipstream V3, which applies dynamic fees that rise during periods of rapid price movement and incorporates mechanisms for capturing maximal extractable value. Rewards are priced in dollars and capped relative to projected revenue.

Market Position and Ambitions

Aerodrome has held a leading position in onchain bitcoin-dollar trading and has expanded its share of tokenized-stock activity. The platform’s portion of tokenized-stock trading across Ethereum and related layer-two networks rose from approximately 2 percent in early September to 57 percent by October 10, according to team figures. Cumulative trading volume across the prior protocols reached about $489 billion, with lifetime exchange revenue near $580 million.

Cutler has framed Aero’s goal as competing for onchain spot trading volume on a scale comparable to traditional equity markets. In comments, he described the platform as the spot exchange infrastructure for the onchain economy and compared its potential trajectory to the growth of Hyperliquid in derivatives. He noted that onchain spot markets generated roughly $5 billion in fees in the prior year and characterized that figure as the largest single opportunity in decentralized finance.

Security work preceding the launch included multiple audits by Sherlock and ChainSecurity, followed by a public contest. A bug bounty program was scheduled to open on launch day. The project projects annualized inflation near 12 percent, with a ceiling of 20 percent at the outset.

Price Action Around the Launch

In the hours surrounding the launch, the AERO token traded lower. One report showed a decline of roughly 5.7 percent to levels near $0.80, while another recorded a drop of about 7.8 percent. Futures open interest fell nearly 8 percent to approximately $138 million, consistent with reduced leveraged exposure. Spot exchange flows registered modest net outflows.

Technical readings pointed to seller control near the $0.80 area, with support levels identified around $0.79 to $0.75. The token remained higher on a one-month basis despite the short-term pullback.

Holders and liquidity providers must still complete migrations and rebuild positions on the new pools. Some earlier pools lack direct counterparts at launch, which may affect the pace of liquidity migration in the initial period.