Aerodrome and Velodrome merge to launch Aero across seven blockchain networks

Aerodrome (AERO) and Velodrome, two major DEXs on Base and OP Mainnet, have merged to launch Aero, an onchain spot exchange across seven networks.According to a Wednesday statement, Aero is launching on Ethereum mainnet, Base, Robinhood Chain, Ink, OP Mainnet, Arc, and Arbitrum. It aims to bring the two DEXs' existing operations under a unified platform.The team said the new exchange builds on a model that supported the growth of Aerodrome and Velodrome. Aerodrome accounted for 58% of DEX trading volume on Base in the third quarter, while Velodrome accounted for 60% on OP Mainnet, according to the statement. Aerodrome also led all DEXs in bitcoin-dollar trading volume during the quarter.The new exchange "now upgrades that model," and extends it to seven networks that together handle about $120 billion a month in DEX trading, the project said."Every market is coming onchain, and any institution that can be distilled into code will be. Their margin is our opportunity," said Alex Cutler, founder and CEO of Dromos Labs, which develops Aero."Aerodrome and Velodrome won because the model works better for the people who use it," Cutler added. "Aero takes that model to some of the biggest markets onchain, and 100% of the revenue it earns goes back to the people who stake AERO."As part of the merger, the existing AERO and VELO tokens will migrate to a new AERO token, while veAERO and veVELO will convert to sAERO, per the statement.Liquidity allocationThe team said Aero introduced a new economic system designed to incentivize liquidity providers and reward the staked AERO holders who coordinate its network.Specifically, its central feature, dubbed "Predictive Allocation," lets participants stake AERO and direct liquidity rewards budget toward markets they expect to generate revenue.Aero is also launching Metaswaps, which is designed to connect trading across networks using its existing onchain liquidity.Another upgrade, Slipstream V3, introduces dynamic fees that rise when markets move fast, along with MEV capture on supported Layer 2 networks, per the statement.