Aerodrome and Velodrome Merge to Form Aero, Targeting $63 Billion Market

Aerodrome Finance and Velodrome Finance, two prominent players in the decentralized finance (DeFi) sector, are merging to form a new platform called Aero. This strategic consolidation aims to enhance their market reach from $7 billion to over $63 billion in total value locked (TVL).

The merger, announced in mid-November 2025, is set to go live in October 2026. Aero will streamline user experience by offering a single token and interface, merging the existing ve(3,3)-style tokenomics from both platforms. This integration will enable token holders to lock their assets for voting power, directing incentives across a larger ecosystem.

Aero will operate across multiple chains, including Base, Optimism, and the Ethereum mainnet, addressing inefficiencies caused by fragmentation in Layer-2 ecosystems. By consolidating liquidity, Aero aims to create a more efficient trading environment for users.

For VELO token holders, a proposed conversion ratio of 0.55 AERO for each VELO is under consideration, although this is still subject to finalization. The merger is expected to enhance liquidity opportunities, tapping into chains that collectively handle $135 billion in monthly trading volume.

In related news, Aerodrome is winding down its Autopilot service, which has been managing liquidity for users. The service will cease public operations after March 25, 2026, with a transition to a private mode, allowing users until April 25, 2026, to withdraw their deposits. This move aligns with the upcoming launch of Aero, which will include its own built-in automation suite, making third-party solutions redundant.