Aerodrome Finance

Aerodrome Finance is the central trading and liquidity marketplace on the Base blockchain. It is a next-generation automated market maker (AMM) designed to serve as Base's primary liquidity hub, combining a powerful liquidity incentive engine, a vote-lock governance model, and a user-friendly experience.[1]

## Key Features

**Stable & Volatile Trading for Low Fees:** Aerodrome enables trading of both stable and volatile cryptocurrency assets with low trading fees for users.[1]

**100% of Protocol Incentives and Fees Go to Voters:** All incentives from the protocol emissions as well as trading fees generated are distributed to veAERO holders who have voting rights based on their locked AERO tokens.[1]

**Liquid Locked Positions in the Form of NFTs:** AERO holders can lock their tokens to receive veAERO NFTs, representing their locked and vote-escrowed position, which remain liquid and transferable.[1]

**Permissionless Pools, Gauges, and Incentives:** Aerodrome allows anyone to create new liquidity pools, gauges for staking liquidity, and configure incentives in a permissionless manner.[1]

**Self-Optimizing Liquidity Flywheel:** The ability to create pools/incentives in a permissionless way enables a self-sustaining liquidity flywheel on the protocol.[1]

**Anti-dilution Rebases for Voters:** The voting power of veAERO holders increases over time relative to the AERO token supply growth, protecting their governance rights from dilution.[1]

## How It Works

Aerodrome Finance is designed to reward participants that enable the sustainable growth of the protocol. Traders can swap tokens with minimal slippage and pay low fees to AERO lockers. Liquidity providers deposit trading tokens and receive AERO emissions as rewards. Protocols offer incentives to veAERO voters to attract votes and AERO emissions to their pools, allowing them to build liquidity at a low cost. veAERO voters vote on which pools will earn AERO emissions and receive 100% of incentives and fees for the pools they vote for.[1]

Aerodrome Finance boasts a dominant 30% market share on the Base network, with over $132 million in total value locked (TVL) according to DeFiLlama.[3] The Base Ecosystem Fund, headed by CB Ventures, recently acquired a position in AERO, the native token of Aerodrome Finance, leading to a significant price surge of over 140%.[3]