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DeFi · 1 min read

Aerodrome and Velodrome Merge to Launch Unified Aero Protocol

The decentralized exchanges consolidated under a unified AERO token, distributing 94.5% of supply to Aerodrome holders and 5.5% to Velodrome.

Editorial oversight: Julian Mercer, Chief Editor
Neutral
$ETH $2,403 −2.3% $BTC $81,924 −1.7%

At a glance Announced

What happened
Aerodrome and Velodrome executed a protocol merger on Oct. 21 to launch Aero, unifying their liquidity and tokens.
Why it matters
Legacy emissions have ceased, requiring liquidity providers and token holders to migrate to Aero to capture exchange revenue.
Who is affected
Holders of AERO, VELO, veAERO, veVELO, and liquidity providers on Aerodrome and Velodrome.
Takes effect
2026-10-21
What's next
Autopilot allocations begin streaming on Oct. 22 at 16:00 UTC to distribute automated pool rewards.
Primary source
aero.xyz: Upgrade and Launch Hub — Aero

Key points

  • Aerodrome and Velodrome merged into Aero on Oct. 21 at 8:00 p.m. EDT, unifying under a single token architecture.
  • Conversion rates stand at 1:1 for AERO holders and 0.044 for VELO holders, granting Aerodrome 94.5% and Velodrome 5.5% of the new supply.
  • The new protocol deployed across Base, Ethereum, OP Mainnet, Arbitrum, Ink, Arc, and Robinhood Chain, managed via Base gas fees.

Aerodrome and Velodrome completed their merger on Oct. 21 at 8:00 p.m. EDT (Oct. 22 at 00:00 UTC) to form Aero, a unified liquidity layer across Ethereum ecosystems 1. The upgrade terminates emissions on legacy Aerodrome and Velodrome pools, replacing them with a single network token and staking framework 1. At the time of writing, the broader market traded slightly lower, with $BTC at $81,990 and $ETH at $2,409.

Under the migration structure, holders of liquid $AERO or veAERO receive the new $AERO token or staked sAERO at a 1:1 ratio 1. Holders of $VELO or veVELO convert at an exchange rate of 0.044 new AERO per token 1. The fixed ratio allocates 94.5% of the new token supply (2.01 billion tokens) to Aerodrome holders and 5.5% (117 million tokens) to Velodrome holders 1. Based on current circulating figures, total supply is projected to rise to a maximum of approximately 2.127 billion AERO, while circulating supply will expand from roughly 1.01 billion to a maximum of 1.07 billion tokens 1. Aero projected an annual realized inflation rate of roughly 12%, governed by an initial 20% annual ceiling 1.

Cross-Chain Staking and Deployment

The protocol deployed across Base, Ethereum Mainnet, OP Mainnet, Arbitrum, Arc, Ink, and Robinhood Chain 1. Staked AERO (sAERO) grants holders revenue claims and governance authority to steer pool rewards across any supported chain in a single transaction paying gas strictly on Base 1. Position allocations carry an initial 47-hour cooldown between modifications 1.

Conversion portals remain active on legacy websites without an enforcement deadline, though front-end support for legacy contracts may terminate in the future 1. Unconverted tokens will not enter circulation 1. Unichain, Fraxtal, Soneium, and Celo will retain Velodrome liquidity deposits and trading interfaces without the legacy token economy 1. Autopilot allocations scheduled for launch at 16:00 UTC on Oct. 22 will direct system emissions following early pool seeding by the Aero Foundation 1.

Questions this story raises

What is the token conversion rate for AERO and VELO?
AERO converts 1:1 into the new AERO token or sAERO, while VELO converts at a rate of 0.044 new AERO per token.
Is there a deadline to migrate legacy tokens?
There is no set deadline to convert, but front ends for the legacy Aerodrome and Velodrome applications may be shut down at a later date.
Where does the new Aero protocol operate?
Aero is deployed on Base, Ethereum Mainnet, OP Mainnet, Arc, Ink, Robinhood Chain, and Arbitrum, with staking actions settling on Base.

Sources

  1. [1] Upgrade and Launch Hub — Aero — aero.xyz, October 22, 2026

Written by Basis Desk's newsroom system from the primary sources above and machine-verified against them before publication. Market figures marked "at the time of writing" come from live exchange data. Report an error: corrections@basisdesk.news · corrections policy.

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