Aerodrome Finance Describes Itself As

Aerodrome Finance is a next-generation Automated Market Maker (AMM) designed to function as the central liquidity hub on the BASE network. The platform, which launched on August 28, 2023, integrates advanced features from Velodrome V2. Aerodrome aims to facilitate efficient token swaps and attract liquidity through a robust liquidity incentive engine, vote-lock governance model, and an enhanced user experience.

Project Utility/Function

Aerodrome Finance's primary function is to enable token swaps and generate trading fees by attracting liquidity. Key mechanics include:

• Low Slippage and Fees: The platform is optimized for minimal slippage in trades, enhancing user experience.
• Liquidity Incentives: Liquidity providers (LPs) are incentivized with AERO token emissions.
• Vote-Lock Governance: Participants can lock AERO tokens to receive veAERO NFTs, granting them voting power for emission distributions and entitling them to trading fees.
• Epoch-Based Rewards: Emissions and rewards are distributed in epochs, with LPs receiving emissions based on the votes their pools accumulate.

The governance model allows veAERO holders to influence emission rates and distribution, promoting a decentralized approach to managing liquidity incentives.

Token/Token Utility

Aerodrome Finance uses a dual-token system:

• AERO (ERC-20): This utility token is distributed to liquidity providers as emissions and can be locked to create veAERO for governance participation.
• veAERO (ERC-721): A governance token obtained by locking AERO. It enables holders to vote on emission distributions and receive trading fees and other incentives.

Tokenomics:

• Initial Supply: 500 million AERO, with 450 million distributed as vote-locked veAERO tokens.
• Emission Phases: undefinedundefinedundefined

Initial Distribution:

• AERO: 40 million for voter incentives, 10 million for the Genesis Liquidity Pool.
• veAERO: 200 million airdropped to veAERO lockers, 105 million for ecosystem and public goods, 70 million for the team (auto max-locked), 50 million for protocol grants, and 25 million for AERO pools vote power.

About the Founders

Aerodrome Finance was launched by Velodrome, a prominent decentralized exchange (DEX) on the Optimism network. Alex Cutler, a core member of Velodrome Finance, played a key role in establishing Aerodrome. Before his involvement in decentralized finance (DeFi), Cutler had a background in politics, technology, and consulting.

Risks of AERO

Like an investment in other crypto assets, there are some general risks to investing in AERO. These include:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in AERO is subject to the following specific risks:

• Aero Finance operates using smart contracts, which have an association with vulnerabilities and security breaches. Despite undergoing successful audits by well-regarded third-party entities, it is essential to acknowledge the existence of inherent risks. 

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with AERO. Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

The AERO community and Aero Finance founding team are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of AERO have no recourse to the AERO community, Aero Finance founding team, or Uphold if AERO declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing AERO on the Uphold Platform, Uphold performed due diligence on AERO and determined that AERO is unlikely to be a security or derivative under relevant securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

• The creation, governance, usage, and design of AERO, including ensuring the source code is open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 
• The supply, demand, maturity, utility, and liquidity of AERO.
• Any marketing materials put forward by the AERO social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with AERO, including any code defects, security breaches and other threats concerning AERO and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.
• Legal and regulatory risks associated with AERO, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of AERO.

General

Uphold has prepared this Crypto Asset Statement based on publicly available information. Although Uphold has taken steps to obtain information from apparently reliable sources, information contained in this Crypto Asset Statement may be inaccurate, incomplete or out-of-date. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.

Uphold users should read the Risks Specific To Holding Digital Assets statement for additional discussion of general risks associated with crypto assets made available through the Uphold platform.  

Canadian residents, please note that Uphold has filed an application for registration in certain Canadian jurisdictions but has not yet obtained registration. Until such time as Uphold obtains registration, Uphold has agreed to abide by the terms of an undertaking available at the following link. Please also review the Uphold Canada – Crypto Risk Statement for additional discussion of general risks associated with the crypto assets made available through Uphold Platform. Please be aware that statutory rights of action for damages or rescission in section 130.1 of the Securities Act (Ontario) and, if applicable, similar statutory rights under securities legislation in the other provinces and territories of Canada do not apply in respect of this Crypto Asset Statement or other disclosures on the Uphold website and Risks Specific To Holding Digital Assets statement. 

Last updated on June 4, 2024.