Aerodrome and Velodrome Merge to Form Aero, Targeting $63 Billion Market
Aerodrome Finance and Velodrome Finance, two prominent decentralized finance (DeFi) liquidity hubs, are merging to create a new platform called Aero. This merger aims to significantly expand their market reach from $7 billion to over $63 billion in total value locked (TVL), while also servicing chains that collectively handle $135 billion in monthly trading volume. The integration is set to go live in October 2026, following the announcement made in mid-November 2025.
The new platform will simplify user experience by offering a single token and interface, replacing the existing dual systems of Aerodrome and Velodrome. Aero will combine the ve(3,3)-style tokenomics from both platforms, allowing token holders to lock up their assets for voting power, which will influence the distribution of new token rewards across a larger ecosystem. This unified approach aims to address inefficiencies caused by fragmentation in Layer-2 networks, which often develop isolated liquidity pools.
For current VELO token holders, a proposed conversion ratio of 0.55 AERO for each VELO has been suggested, although this figure remains subject to finalization. The merger is expected to create a more efficient liquidity layer for Ethereum-aligned chains, enhancing opportunities for liquidity providers by tapping into a broader market. As Aero prepares for its launch, stakeholders are advised to monitor the finalization of the conversion ratio and the establishment of the new voting system.
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Source: KLEA News