Aerodrome and Velodrome are combining their decentralized exchange businesses to launch Aero, a new onchain trading platform targeting seven blockchain networks with a combined monthly trading volume of approximately $120 billion. The move brings together two established decentralized exchange (DEX) platforms as they seek to expand their presence across onchain markets.
The new platform will combine elements of both exchanges while introducing a revised system for distributing liquidity incentives. Its features include predictive allocation, cross-network swaps and concentrated-liquidity trading infrastructure. The project also plans to direct all exchange revenue to AERO stakers, placing tokenholder rewards at the center of its economic model.
Aero is launching without venture capital backing or a token sale, according to the supplied announcement. Existing AERO and VELO tokens are set to transition into the new AERO structure, while locked governance positions become sAERO.
Aerodrome and Velodrome Bring Their Markets Together
Aerodrome has established a major position on Base, while Velodrome has built a leading role on OP Mainnet. Figures provided by the project put Aerodrome's share of decentralized exchange trading on Base at 58% in the third quarter of 2026. Velodrome reportedly captured 60% of DEX trading on OP Mainnet over the same period.
The two platforms have also distributed a reported $578 million to tokenholders. Their merger brings those existing ecosystems together under Aero as the project targets a wider group of blockchain networks and trading markets.
The combined target market is described as processing around $120 billion in monthly trading volume across seven networks. That figure represents the trading activity of the targeted networks collectively, not a claim that Aero already processes $120 billion each month.
Predictive Allocation Connects Rewards to Trading Demand
One of Aero’s main additions is Predictive Allocation, a system that allows participants to stake tokens and direct liquidity incentives toward markets they expect to generate the most trading revenue. Participants who allocate incentives to successful markets can receive proportional distributions, linking rewards to their ability to anticipate trading demand.
The approach changes how liquidity incentives are directed. Rather than relying solely on traditional governance voting to decide where rewards go, participants can use their market expectations to influence the distribution of incentives. The results will depend on trading activity and whether participants’ allocations attract liquidity to markets that generate revenue.
Users can review the protocol’s design through the Aerodrome documentation and Velodrome documentation, which explain the two platforms being brought together under the new structure.
Metaswaps and Slipstream V3 Expand Trading Features
Aero is also introducing Metaswaps, a feature designed to support transactions across different blockchain networks. The goal is to make cross-network trading more accessible without requiring users to manage every step of a traditional manual bridging process themselves.
Another component, Slipstream V3, incorporates dynamic fees and mechanisms for capturing maximal extractable value (MEV). Dynamic fees can adjust according to trading conditions, while MEV refers to value that can be extracted by changing the ordering, inclusion or exclusion of transactions within a block. The supplied announcement does not quantify how much these features are expected to increase revenue or improve execution.
Together, these features form part of Aero’s effort to extend its trading infrastructure beyond the networks where Aerodrome and Velodrome originally established their positions.
AERO Token Transition and Revenue Distribution
Aero’s launch does not involve a new token sale or venture capital funding, according to the supplied announcement. Instead, existing AERO and VELO tokens are transitioning into a new AERO structure, while locked governance positions are being converted into sAERO, the staked form associated with the new system.
The token transition has also been addressed by exchanges. Binance’s official announcement outlines its support for the VELO-to-AERO token merger and the AERO contract swap. It specifies a conversion ratio of 1 VELO to 0.044 AERO, while old AERO tokens are exchanged for new AERO tokens at a 1:1 ratio on Binance.
Dromos Labs CEO Alex Cutler said the platform would direct 100% of exchange revenue to AERO stakers. This model is intended to connect the platform’s trading activity with returns for participants who stake the token. Actual distributions will depend on the revenue generated and the rules governing the protocol.
Can Aero Sustain Its Growth Across Seven Networks?
Cutler framed the merger as an opportunity to expand the exchanges’ model to larger onchain markets. “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,” he said.
He added: “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.”
The combined platform’s longer-term performance will depend on whether it can attract liquidity and trading activity across its target networks while maintaining competitive execution. Predictive Allocation and cross-network swaps are designed to support that goal, but their effectiveness will need to be assessed through actual usage and revenue data.
The merger brings two established DEX ecosystems into one platform and introduces a revised approach to liquidity incentives and tokenholder rewards. Its stated $120 billion monthly market target describes the scale of the networks Aero aims to serve; it does not represent trading volume already captured by the new exchange.
