Aerodrome and Velodrome merge to launch Aero, an exchange across seven networks

Aerodrome and Velodrome, decentralized exchanges on Base and OP Mainnet built by the same developer, Dromos Labs, have merged to form Aero, an on-chain spot exchange running across seven networks. Aero launched at 8 p.m. ET on October 21 (00:00 UTC on October 22), according to the project, and The Block reported the merger the same evening.

What happened

Dromos Labs combined its two exchanges into a single protocol under the Aero name. AERO and VELO holders can upgrade to the new AERO, and veAERO and veVELO positions upgrade to sAERO, according to the Aero upgrade hub. The terms are 1 AERO for 1 new AERO and 0.044 new AERO for each VELO. Holders in self-custody upgrade through the project's portals; there is no set deadline, though the legacy front ends "may be shut down at a later date," the hub says.

The supply of the new token was split 94.5% to Aerodrome and 5.5% to Velodrome, based on each exchange's revenue over the previous 52 weeks, according to Aero's launch post.

The two exchanges were the largest on their home networks, by the project's own count: its statement said Aerodrome accounted for 58% of decentralized exchange volume on Base in the third quarter, and Velodrome for 60% on OP Mainnet, The Block reported. The statement also said the seven networks together handle about $120 billion a month in DEX trading.

Aero launches with features named Predictive Allocation, Metaswaps, and Slipstream V3. Its networks include Robinhood Chain, whose first quarter on mainnet featured in Robinhood's third-quarter results, and Arc, the network Circle launched in September, as described in Circle's results.

Exchange support

Centralized exchanges handled the conversion for customers who held the tokens there. Kraken said it would process the migration between November 2 and 6, according to its notice. Those windows have now closed.

Why it matters

Decentralized exchanges compete for liquidity, and liquidity attracts traders. Combining two exchanges that held most of the DEX volume on their home networks, by the project's figures, and expanding to five more networks puts a single token in charge of rewards across all of them.

What it could mean for traders

For holders of the old tokens, the upgrade terms are what matter: VELO converts at 0.044 AERO, and positions held in self-custody must be upgraded through the portals. For traders on the supported networks, deeper combined liquidity can mean tighter prices on swaps, if liquidity providers follow the new incentive structure. The Aero upgrade hub is the reference for conversion details.