Aerodrome Finance: Powering DeFi on Base Chain

Understanding Aerodrome Finance

Aerodrome Finance is a cutting-edge decentralized finance (DeFi) protocol built on Base, an Ethereum Layer-2 network developed by Coinbase. Designed as the native liquidity layer of Base, Aerodrome combines powerful features such as automated market making (AMM), vote-escrow tokenomics, and incentives to attract both users and developers.

Launched in 2023, Aerodrome operates as a fork of Velodrome Finance—bringing proven mechanisms into the Base ecosystem. It allows users to trade, earn yields, provide liquidity, and participate in decentralized governance, all in one robust platform.

Key Features

Tokenomics

The native token of Aerodrome is AERO. It is used for liquidity incentives, governance, and emissions voting. AERO holders can convert their tokens into veAERO by locking them for up to 4 years. The longer the lock, the more voting power and rewards a user receives.

Why Aerodrome is Important

Aerodrome plays a foundational role in Base’s DeFi infrastructure. By offering sustainable emissions, incentivized liquidity, and community governance, it reduces reliance on short-term yield farming and builds a more resilient DeFi ecosystem.

Frequently Asked Questions (FAQ)

1. What is Aerodrome Finance?

Aerodrome is a decentralized AMM and liquidity hub on Base Chain, supporting token swaps, liquidity provision, and ve-token governance.

2. How do I earn with Aerodrome?

Users can provide liquidity, stake AERO tokens, participate in bribes, and vote with veAERO to earn rewards.

3. What is veAERO?

veAERO is a vote-escrowed version of the AERO token. It grants voting rights and boosted rewards based on the lock duration.

4. Is Aerodrome safe to use?

Aerodrome is built on audited smart contracts, but as with all DeFi protocols, users should exercise caution and do their own research.

5. How can I start using Aerodrome?

Connect your wallet to aerodrome.finance, bridge assets to Base, and begin trading or providing liquidity.

6. What makes Aerodrome different from Uniswap?

Unlike Uniswap, Aerodrome includes vote-escrowed tokenomics, protocol-owned liquidity, and bribing systems to direct incentives more effectively.