Decentralized finance (DeFi) protocol Velodrome has recently introduced Aerodrome, an innovative decentralized exchange (DEX) specifically designed for Coinbase’s layer 2 blockchain Base.
Promising Minimal Slippage and Low Fees
Aerodrome aims to provide traders with the ability to swap tokens with minimal slippage and low fees. In addition, users will be rewarded with governance tokens that can be utilized for voting and have the potential to increase in value.
“Aerodrome is a next-generation automated market maker designed to serve as Base’s central liquidity hub, combining a powerful liquidity incentive engine, vote-lock governance model, and a user-friendly experience,” stated the Aerodrome website.
The launch of Aerodrome marks an exciting milestone for the DeFi era on Base.
AERO Token Airdrop for veVELO Holders
Aerodrome plans to incentivize users by conducting an airdrop of its AERO token to existing users who hold veVELO tokens or locked Velodrome (VELO) tokens.
According to the project, 40% of the AERO supply will be airdropped to veVELO holders.
This strategy aims to encourage users to engage with the DEX and become active participants within its ecosystem.
Leveraging the Liquidity Flywheel
Aerodrome will leverage the concept of a liquidity flywheel, a feedback loop within the DeFi space. This loop functions by attracting more users, resulting in deeper liquidity, lower slippage, and ultimately driving further user adoption.
Currently, Velodrome has over $193 million (118 ETH) of total value locked (TVL) based on data from DeFi tracking site DefiLlama. On the other hand, Aerodrome has accumulated just under $1 million (562 ETH) in TVL.
