1. Help Center
  2. Cryptocurrencies
  3. Cryptocurrencies with limited transactions

What is Aerodrome Finance?

Modified on:

About AERO

AERO is the governance and utility token of Aerodrome Finance, the central liquidity hub of the Base network.
Built on the Velodrome Finance V2 technology stack, Aerodrome powers trading and liquidity on Base, offering advanced features like concentrated liquidity pools, customizable pool fees, and veNFT-based governance. Since its launch in August 2023, Aerodrome has become a key player in the Base ecosystem, providing efficient liquidity solutions and community-driven governance.

 

Key Points of AERO

  • Liquidity Incentives: AERO emissions reward liquidity providers.

  • Governance via veAERO: Locking AERO generates veAERO NFTs, which grant voting power to influence emissions and protocol decisions.

  • Fee Distribution: 100% of trading fees are distributed to veAERO holders.

  • Built on Base: Aerodrome operates on Base, Coinbase’s Ethereum Layer 2 network.

FAQ

1. What is AERO used for?

AERO serves multiple purposes within Aerodrome Finance:

  • Liquidity incentives: Liquidity providers earn AERO emissions.

  • Governance: Locking AERO generates veAERO NFTs, giving holders voting rights over emissions and other key decisions.

  • Fee rewards: All trading fees are shared with veAERO holders.

2. How does Aerodrome work?

Aerodrome is a decentralized automated market maker (AMM) that optimizes liquidity on Base:

  • Liquidity providers pair AERO with supported tokens to create liquidity pools and receive LP tokens.

  • Staking LP tokens earns AERO emissions, which can be locked into veAERO for voting power.

  • veAERO holders vote weekly to direct AERO emissions toward specific liquidity pools, influencing incentives and liquidity distribution.

  • 100% of trading fees are returned to veAERO holders.

Example:

Diego wants to put his USDC and ETH to work. He adds them to Aerodrome’s liquidity pool, earns LP tokens, and stakes them to receive AERO emissions. By locking his AERO to obtain veAERO, Diego gains voting power and receives a share of trading fees. Each week, he votes to direct more rewards to his preferred pool, enhancing his earnings.

3. How can I buy AERO on Bitso?

To get started:

  1. Log in to your Bitso account.

  2. Go to “Buy/Sell” and select Digital Dollars (USDC) as your base currency.

  3. Choose AERO as the token you want to purchase.

  4. Enter the amount, review the details, and confirm the transaction.

Important: AERO is currently available only for conversions in the Bitso app. This means:

  • External deposits and withdrawals are not enabled at this time.

  • AERO will not be available for trading on Bitso Alpha.

  • You can send and receive AERO with other Bitso users via Bitso Transfer.

Disclaimer

This Help Center article is for informational purposes only and does not constitute financial advice. AERO is the governance and utility token of Aerodrome Finance, a decentralized liquidity hub on the Base network. While the platform introduces advanced mechanisms like vote-directed emissions, veNFT-based governance, and concentrated liquidity, the value of AERO is speculative and subject to market fluctuations and ecosystem participation.

Bitso encourages all users to conduct their own research (DYOR) and invest responsibly.

Was this useful?

Related articles