Aerodrome Finance (MON) Merger Boosts Base Ecosystem

• Aerodrome Finance operates Base's largest decentralized exchange using ve(3,3) tokenomics according to analytics.
• The protocol redirects 100% of trading fees to users who lock MON tokens as reported.
• MON holders govern emissions through veMON NFTs that confer voting rights according to SuperEx.
• November 2025's merger with Velodrome creates cross-chain platform 'Aero' according to reports.

Aerodrome Finance (MON) has anchored Base network liquidity since its 2023 launch. The protocol's unique tokenomics and recent Velodrome merger signal strategic expansion. These developments could reshape Layer 2 decentralized exchange dynamics. DeFi participants should monitor integration progress for yield implications.

How Does Aerodrome Finance's ve(3,3) Model Work?

Aerodrome automates market making on Coinbase's Base network. It incentivizes liquidity providers with MON token rewards while using a distinctive fee structure. Unlike traditional decentralized exchanges, all trading fees flow exclusively to users locking MON tokens as veMON NFTs. These non-fungible tokens grant governance voting power over emissions allocation.

The model creates alignment between long-term stakeholders and protocol health. Locked token holders direct MON emissions to preferred liquidity pools while earning fee revenue. This structure reduces mercenary capital and promotes sustainable participation. Base ecosystem growth benefits from concentrated liquidity depth.

What Strategic Benefits Does the Velodrome Merger Offer?

Dromos Labs merged Aerodrome with Velodrome in November 2025. The combined 'Aero' platform spans Base and Optimism networks according to analysis. This integration consolidates liquidity and incentives across two major Layer 2 ecosystems. Traders gain access to deeper order books with reduced slippage.

The cross-chain approach enhances capital efficiency significantly. Unified governance could streamline emissions decisions across both networks. Liquidity providers benefit from expanded trading opportunities. This consolidation positions Aero as a dominant Layer 2 liquidity hub.