Aerodrome and Velodrome merge into Aero, a DEX giving 100% of revenue to stakers with no VC backing or token sale

Aerodrome and Velodrome, the leading decentralized exchanges on Base and OP Mainnet, are merging into Aero, a unified platform that will send 100% of its exchange revenue to stakers. The project launches across seven networks with no venture capital backing and no token sale.

The new platform combines the exchanges’ existing operations and token ecosystems while introducing a model that directs all exchange revenue to stakers. According to information shared by the team with Bitcoin.com News, Aerodrome and Velodrome have collectively distributed $578 million to tokenholders, providing a foundation for the new project’s community-focused approach.

Aero’s launch comes as tokenized stocks, foreign exchange and other financial markets increasingly move onto blockchain networks. Its strategy centres on combining established exchange infrastructure with new incentives designed to encourage users to direct liquidity towards markets with stronger revenue potential.

Aerodrome and Velodrome combine their DEX market positions

The merger builds on the market positions established by both exchanges on their respective blockchain networks. Aerodrome accounted for 58% of decentralized exchange trading on Base during the third quarter of 2026, while Velodrome captured 60% of the market on OP Mainnet, according to figures provided by the team.

These positions give Aero an established presence across two major blockchain ecosystems as it pursues opportunities across seven networks. The platform’s broader objective is to compete for a greater share of trading activity in markets that are increasingly being represented and exchanged onchain.

Merge

Aerodrome has also claimed a leading position in bitcoin-dollar trading and onchain foreign exchange activity. Its reported performance in tokenized stocks has been another notable development. The exchange’s share of tokenized-stock trading across Ethereum and associated layer-two (L2) networks reportedly increased from approximately 2% in early September to 57% by October 10.

These figures suggest that the platforms’ strategy extends beyond conventional cryptocurrency swaps. By targeting additional asset classes, Aero is positioning itself to benefit from the expansion of blockchain-based financial markets.

The projected $120 billion in monthly trading volume across its seven target networks represents the scale of the market Aero intends to address, rather than a guarantee of trading activity that the new platform will capture. Its ability to convert that opportunity into sustained growth will depend on liquidity, user participation and competition from other decentralized exchanges.

Aero introduces predictive liquidity rewards

A central feature of the new platform is Predictive Allocation, a system that allows participants to stake tokens and direct liquidity incentives towards markets they believe will generate stronger trading revenue.

Under the mechanism, participants allocate incentives according to their expectations of future demand. Successful allocations receive proportional distributions, linking potential rewards to the ability to identify markets likely to attract profitable trading activity.

The approach is intended to change how liquidity incentives are distributed. Rather than relying exclusively on predetermined allocations, Aero gives participants a role in deciding which markets should receive support based on their assessment of potential returns.

If the system works as intended, the mechanism could encourage liquidity to move towards markets where trading demand and revenue opportunities are stronger. It also introduces an element of forecasting, meaning participants’ decisions will depend on how accurately they anticipate changes in market activity.

However, the system’s effectiveness remains dependent on actual market conditions. Poor forecasts, shifting demand or insufficient liquidity could limit the benefits of the incentive structure. The relationship between successful allocations and distributions will therefore be important in determining whether the model can sustain participation over time.

Aero is also introducing Metaswaps to facilitate transactions across different blockchain networks. Another component, Slipstream V3, incorporates dynamic fees and mechanisms for capturing maximal extractable value (MEV), which refers to the additional value that can be obtained by influencing the ordering, inclusion or exclusion of transactions within a blockchain block.

Together, these features are intended to support cross-network trading while providing tools for managing liquidity and capturing transaction-related value. Their performance will help determine whether Aero can attract users beyond the communities already served by its predecessor exchanges.

No venture capital backing as Aero promises full revenue sharing

Aero is launching without venture capital backing or a token sale, according to the project details. Instead, the existing AERO and VELO tokens are transitioning into the new AERO structure, while locked governance positions become sAERO.

The transition consolidates the two exchanges’ token arrangements under a shared platform. It also places the new revenue-sharing model at the centre of Aero’s economic proposition, with the team promising to distribute all exchange revenue to stakers.

Dromos Labs CEO Alex Cutler said the platform would direct its earnings to participants rather than retain a portion of exchange revenue for the project.

“Every market is coming onchain, and any institution that can be distilled into code will be. Their margin is our opportunity. Aerodrome and Velodrome won because the model works better for the people who use it,” Cutler said.

The executive also outlined the intended scope of the merger and its approach to distributing earnings.

“Aero takes that model to some of the biggest markets onchain, and 100% of the revenue it earns goes back to the people who stake AERO,” Cutler added.

The promise of full revenue sharing distinguishes Aero’s stated model from platforms that retain a portion of their exchange earnings. For tokenholders, however, the practical value of the arrangement will depend on how much revenue the platform generates and how its staking and distribution mechanisms operate.