Aerodrome Finance

Aerodrome Finance is a decentralized exchange and automated market maker built natively on the Base blockchain, positioning itself as Base's central hub for trading and liquidity. It is designed for traders who want to swap tokens and for liquidity providers who want to earn returns by depositing assets into trading pools. The protocol attempts to solve the problem of fragmented, inefficient liquidity on Base by concentrating incentives and governance into a single venue.

Aerodrome inherits its design from Velodrome V2, using an automated market maker model that prices trades algorithmically based on pool balances rather than through an order book. The AERO token sits at the center of a vote-lock governance system, meaning holders can lock their tokens to earn voting rights that direct which liquidity pools receive protocol emissions, aligning incentives between voters and liquidity providers. The protocol runs on Base, which uses a block time of effectively zero minutes as recorded here, reflecting Base's very fast block cadence as an Ethereum Layer 2 network.

Aerodrome generates fee revenue from traders who swap tokens through its liquidity pools, with those fees distributed to liquidity providers and, under the vote-lock model, to veAERO voters who direct emissions toward specific pools. The data stored here does not include a specific fee-rate figure, so no precise fee yield can be stated. What the data does show is a 24-hour turnover of 8.39% of market capitalization and a 30-day average turnover of 4.17% of market capitalization, both of which reflect the volume of economic activity flowing through the protocol relative to its size and are the figures most directly connected to the fee stream that flows to participants.