Aero Launches as Multi-Chain DEX Powerhouse Following Aerodrome and Velodrome Merger

Aerodrome and Velodrome have merged to create Aero, a unified onchain exchange designed to capture trading flow across seven major networks. By consolidating the dominant liquidity providers of Base and OP Mainnet, the new entity aims to scale its incentive-driven model to Ethereum Mainnet, Arbitrum, and Robinhood Chain, targeting high-value institutional asset classes.

What was announced

Aero is an onchain spot exchange built on Dromos Labs’ MetaDEX03 operating system. It succeeds Aerodrome and Velodrome, which previously controlled 58% and 60% of decentralized exchange (DEX) trading on Base and OP Mainnet, respectively, during Q3 2026. The new platform expands this reach to Ethereum Mainnet, Robinhood Chain, Ink, Arc, and Arbitrum—networks that collectively facilitate approximately $120 billion in monthly trading volume. The merger introduces "Predictive Allocation," a mechanism where AERO stakers direct liquidity rewards toward specific markets to earn 100% of the generated revenue. Additionally, Aero features "Metaswaps" for cross-network trading and "Slipstream V3," which incorporates dynamic fees and MEV capture. The transition involves upgrading existing AERO and VELO tokens to the new AERO asset, while veAERO and veVELO positions become sAERO. Notably, the project launched without venture capital backing or a public token sale. The platform’s predecessors have already distributed $578 million in revenue to tokenholders and demonstrated significant growth in niche markets; Aerodrome’s share of tokenized-stock trading rose from 2% in September to 57% by October 10, 2026.

The companies involved

Aero is the result of a strategic consolidation between two of the most prominent decentralized exchanges in the Layer-2 ecosystem. Aerodrome established itself as the primary liquidity hub on Base, the Coinbase-incubated network, while Velodrome served a similar role as the leading exchange on OP Mainnet. Both platforms utilized a "vote-escrow" model to align the interests of liquidity providers and token holders. The core development of the unified Aero platform is led by Dromos Labs, headed by CEO and Co-Founder Alex Cutler. The expansion into Robinhood Chain marks a significant move into a network that has become a focal point for institutional fintech integrations. Unlike many contemporary decentralized finance projects that rely on heavy venture capital investment, Aero maintains its independence from external funding, relying instead on the established revenue-sharing models that allowed its predecessor platforms to distribute over half a billion dollars to their respective communities.

What FF News has reported before

FF News has closely tracked the evolution of the networks Aero now inhabits. We previously covered how Coinbase Launches Tokenized Stocks on Base, a development that directly contributed to Aerodrome’s dominant market share in onchain equities. The institutional infrastructure surrounding these networks has also matured, as seen when Paribu Custody Expands Institutional Reach with Robinhood Chain Integration. Furthermore, the launch of Enso Launches on Robinhood Chain to Unlock Composable Stock Token Access for Fintechs highlighted the growing demand for the composable stock access that Aero aims to facilitate. We also reported on how Turnkey Launches Swaps and Earn to Monetize Embedded Wallets with In-App Trading, reflecting the broader trend of embedding trading capabilities directly into fintech applications.

What this means

This merger signals a shift from fragmented liquidity to a "super-app" approach for decentralized exchanges. By combining the volume of Base and OP Mainnet, Aero is positioning itself as a direct competitor to established giants like Uniswap, particularly in the institutional space. The focus on tokenized stocks and onchain FX suggests that the next battleground for DEXs isn't just crypto-native assets, but the migration of traditional finance. However, the success of the "Predictive Allocation" model remains an open question; while it rewards active participation, it also increases complexity. The industry will be watching to see if this incentive-heavy structure can maintain dominance as it moves into the highly competitive Ethereum and Arbitrum ecosystems.