Establishing a Liquidity Hub on the BASE Network
Aerodrome Finance, an Automated Market Maker (AMM), is designed to serve as the central liquidity hub on the BASE network. Officially launched on August 28, 2023, Aerodrome incorporates features from Velodrome V2, aiming to facilitate efficient token swaps and attract liquidity. Velodrome V2 is an upgraded version of Velodrome, introducing key features such as concentrated liquidity support, dynamic fees and emissions, enhanced governance, and liquidity pool registry. This platform boasts a robust liquidity incentive engine, vote-lock governance model, and enhanced user experience.
Project Overview
Aerodrome Finance is engineered to enable seamless token swaps while generating trading fees by drawing in liquidity providers. The platform's optimization for minimal slippage and low fees enhances the trading experience, making it a preferred choice for users looking for efficiency and reliability. Key mechanics of Aerodrome Finance include:
- Low Slippage and Fees: The platform aims to achieve minimal slippage on trades.
- Liquidity Incentives: Liquidity providers are incentivized with AERO token emissions.
- Vote-Lock Governance: Participants can lock AERO tokens to receive veAERO NFTs, which grant voting power for emission distributions and entitlement to trading fees.
- Epoch-Based Rewards: Emissions and rewards are distributed in epochs, with liquidity providers receiving emissions based on the votes their pools accumulate.
The governance model of Aerodrome Finance allows veAERO holders to influence emission rates and distribution, promoting a decentralized approach to managing liquidity incentives.
Token & Token Utility
Aerodrome Finance employs a dual-token system to manage its operations and governance:
- AERO (ERC-20): This utility token is distributed to liquidity providers as emissions. It can be locked to create veAERO for governance participation.
- veAERO (ERC-721): A governance token obtained by locking AERO, veAERO 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: undefinedundefined
About the Founders
Aerodrome Finance was launched by Velodrome, a notable decentralized exchange (DEX) on the Optimism network. Alex Cutler, a core member of Velodrome Finance, played a pivotal role in the establishment of Aerodrome. Prior to his involvement in decentralized finance (DeFi), Cutler had a diverse background in politics, technology, and consulting, bringing a wealth of experience and expertise to the project.
The Liquidity Hub for the Base Network
Aerodrome Finance seeks to revolutionize the BASE network with its advanced AMM features and robust governance model. With a clear focus on attracting liquidity and rewarding participants, Aerodrome provides a compelling platform for users and investors alike as it seeks to establish itself as the liquidity hub for the Base Network.
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