Fueling Up for Financial Lift-Off: Aerodrome Finance to Become Base Network's Premiere Liquidity Engine

Base foundations have been established; atmospheric conditions are optimized for launch. Countdown to lift-off commences. Aerodrome Finance is poised to launch on the Base blockchain network with the support of approximately 20 partners. This article will dissect the multiple facets of Aerodrome Finance, a forthcoming enterprise designed to function as the preeminent liquidity engine and hub within the Base ecosystem.

Aerodrome goes live next week. 🛫

That means over 20 launch partners will be joining us in kicking off in the DeFi era on @BuildOnBase.

Full tokenomics and $veVELO airdrop details are below.

Snapshot coming #soon.https://t.co/jQgELUstPe
— Aerodrome (@aerodromefi) August 21, 2023

Technological Architecture

Constructed atop the Velodrome v2 technology stack, Aerodrome Finance integrates avant-garde features including concentrated liquidity, automated voting mechanisms, and a proprietary veNFT Marketplace. The synergy generated by these attributes cements Aerodrome's position as a leading-edge financial utility within the DeFi space.

Strategic Collaboration and Ecosystem Contribution

In a collaborative effort with the Base Team, Aerodrome Finance has engineered a unique public goods funding mechanism. In this framework, 25% of Aerodrome's initial votepower is allocated to Ecosystem Goods. Such allocation aims to catalyze liquidity for assets that are crucial to the sustained growth and viability of the Base network. Furthermore, the fees accrued from these asset pairs will be judiciously applied toward Public Goods Funding (PGF) and public goods votepower, thereby solidifying Aerodrome's native token, $AERO, as a cornerstone of the ecosystem.

Protocol Onboarding and Liquidity Management

Aerodrome Finance provides a robust infrastructure for protocols seeking integration with the Base network. By locking the variant token, veAERO, and offering deposit incentives, protocols can influence AERO emissions to their liquidity pools. This process engenders a capital-efficient, self-balancing ecosystem that rewards participation and contribution from veAERO holders, as they are entitled to 100% of trading fees and incentives emanating from the pools they elect to support.

Tokenomics and Distribution

veAERO Distribution

For veVELO Holders: A substantial 40% of the initial veAERO supply is designated for veVELO holders, who represent a sophisticated and valuable demographic within the decentralized finance community. Eligibility for this allocation is contingent upon a minimum balance of 1000 veVELO.
Public Goods Funding: A proportion of veAERO is earmarked exclusively for critical ecosystem pairs such as WETH-USDC and cbETH-WETH.
Team Incentives: Aerodrome contributors will be remunerated with veAERO tokens that vest over a period of 2–4 years, thus aligning the team's incentives with the long-term vitality of the protocol and the broader ecosystem.

AERO Distribution and Emissions

Voting Incentives: AERO tokens will be strategically deployed to synchronize with incentives from ecosystem partners or to attract additional engagement to liquidity pools that are of paramount importance to the protocol.
Genesis Liquidity Pool: An initial 2% of the AERO supply will be coupled with USDC and allocated as liquidity to facilitate AERO trading upon launch.
Emission Strategy: AERO token emissions will commence at a rate of 10 million AERO per epoch (week) and will follow a phased approach divided into 'Take-off,' 'Cruise,' and 'Aero FED' stages to sustainably manage supply and demand dynamics.

Aerodrome Finance is meticulously engineered to serve as a linchpin in the Base network, enhancing liquidity and offering a sophisticated array of financial tools and utilities. The forthcoming partnerships, details of which will be disclosed in subsequent communications, promise to augment the capabilities of the Aerodrome platform and by extension, fortify the Base ecosystem.