Aerodrome Finance
AERO
Evaluation Score
Overall rating on a scale of 0-10
Dimension Breakdown
AI Analysis
Comprehensive evaluation of the token
Aerodrome Finance (AERO) is the leading decentralized exchange and central liquidity hub on the Base network, operating a ve(3,3) tokenomics model where approximately 51% of the total token supply is locked as veAERO with an average lock duration of 3.7 years. The protocol exhibits robust fundamentals, generating substantial cumulative trading volume and protocol fees since launch without venture capital backing or presales. Development and governance remain active under Dromos Labs, supported by a proven team originating from Velodrome, with major structural roadmap items including an upcoming merger with Velodrome under a unified Aero brand. Weaknesses include recurring operational security vulnerabilities at the front-end/DNS layer (most notably a November 2025 domain hijack and two minor 2023 phishing incidents, though on-chain smart contracts remained uncompromised) and structural dilution from perpetual weekly emissions.
Development Activity
Code updates and developer engagement
Community Support
Social media presence and community engagement
Tokenomics
Supply, distribution, and utility
Market & Use Case
Value proposition and competitive landscape
Team & Governance
Team background and project governance
Security & Audits
Security history and audit status
About Aerodrome Finance (AERO)
Aerodrome Finance (AERO) is an automated market maker and decentralized exchange operating on the Base network. Launched in August 2023 without venture capital backing or presales, the protocol functions as a liquidity marketplace utilizing a dual-token mechanism consisting of the ERC-20 utility token AERO and vote-escrowed veAERO NFTs. Users lock AERO for up to four years to receive veAERO, granting them voting power over weekly token emissions and a share of protocol swap fees. The project's contract architecture is derived from Velodrome V2 and is maintained by Dromos Labs.
The protocol's tokenomics feature an uncapped total supply with an annualized emission rate of approximately 10.9%, which presents ongoing supply dilution. A significant portion of the total supply—approximately 51%—is locked as veAERO with an average lock duration of 3.7 years. Structural roadmap developments include an MEV-resistant pool migration and a merger combining Aerodrome and Velodrome under a unified exchange and token brand. Governance is managed through veAERO holders alongside an Emergency Council with administrative override capabilities.
Aerodrome has experienced repeated operational security incidents affecting its web infrastructure, although its on-chain smart contracts have not suffered direct exploits. In late 2023, two frontend attacks resulted in approximately $300,000 in user losses. On November 22, 2025, a domain-level DNS hijack compromised the protocol's primary domains, redirecting users to phishing sites with malicious approval requests. In the market, the token experienced an over 80% price drawdown from its December 2024 peak of $2.32, trading between $0.41 and $0.52 by August 2026.