Aerodrome Finance
Crypto Overview
Overview
Aerodrome Finance is a decentralized exchange (DEX) built on Base, a layer-2 scaling solution for Ethereum. It launched in December 2023 as an adaptation of Velodrome Finance's model, implementing vote-escrowed tokenomics and concentrated liquidity features.
Purpose and Utility
AERO serves as the protocol's governance token, allowing holders to participate in decision-making regarding protocol parameters and development. Token holders can lock their AERO tokens to receive veAERO, which grants voting rights and a share of protocol fees.
Business Model
The protocol generates revenue through trading fees from its DEX operations. A portion of these fees is distributed to veAERO holders and liquidity providers. The model focuses on sustainable liquidity provision and protocol governance rather than lending or interest-bearing activities.
Platform Development and Adoption
Since its launch, Aerodrome has maintained active development and achieved significant adoption on the Base network. The protocol has consistently ranked among the top DEXes on Base by trading volume and total value locked (TVL).
Token Distribution
The initial token distribution included allocations for liquidity mining, team members, and ecosystem development. Team tokens are subject to vesting periods, showing commitment to long-term development.
Crypto Impact
To assign a comfort level investing in Aerodrome Finance from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Aerodrome Finance.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.