Question 1

What is AERO?

Accepted Answer

AERO is an ERC-20 token used by Aerodrome on the Base network. Aerodrome is a decentralized trading and liquidity protocol: traders exchange assets through liquidity pools, and the protocol uses AERO emissions to incentivize liquidity in specific pools. AERO itself is not equity in, or proof of ownership of, Aerodrome.

Question 2

What kind of platform is Aerodrome?

Accepted Answer

Aerodrome uses automated market-making pools to let users swap tokens without order-book matching. Liquidity providers first deposit the two assets required by a pool and receive a liquidity position; when trades occur, the quantities of assets in the pool change and quotes change according to the pool's pricing rules. The protocol can also direct AERO emissions to pools selected through voting, so its liquidity incentives are not specified trade by trade by a single centralized operator.

Question 3

What are AERO's main uses?

Accepted Answer

AERO's core role is participation in Aerodrome's incentive allocation. Holders can lock AERO into veAERO to vote on which liquidity pools receive AERO emissions in future periods; liquidity providers can participate in those emissions by depositing their liquidity positions into the corresponding Gauge. Thus, AERO connects liquidity incentives with locked voting, rather than automatically granting every holder the same type of return or governance outcome.

Question 4

What is the difference between veAERO and AERO?

Accepted Answer

veAERO is an ERC-721 NFT obtained by locking AERO, representing a locked position and its voting power; AERO is a transferable ERC-20 token. veAERO holders can vote on Gauges to determine where AERO emissions go and can, under protocol rules, participate in fee and voting-incentive distributions related to the pools they vote for. The two should not be viewed as the same spendable balance that can be exchanged one-for-one at any time, because veAERO's rights arise from AERO that remains within its lock period.

Question 5

How can veAERO be obtained?

Accepted Answer

veAERO is obtained by locking AERO. The official documentation specifies a minimum lock period of 1 week and a maximum of 4 years; locking creates a veAERO NFT. Voting power depends on the amount locked and the remaining lock time: for the same amount, a position with a longer remaining term generally has greater weight, and that weight declines as the expiry date approaches. Lock expiry or unlocking arrangements change availability, so locking should not be treated as an ordinary transfer.

Question 6

How does AERO's voting mechanism work?

Accepted Answer

Aerodrome processes Gauge voting and subsequent incentives in 7-day cycles. veAERO holders first allocate voting power to the Gauges corresponding to one or more pools; each Gauge's share of total effective voting power determines the proportion of AERO emissions allocated among those pools for the next cycle. In other words, voting does not directly distribute newly issued tokens to voters; it first determines how much emissions the relevant liquidity positions can compete for. Voting power, lock duration, and participants' voting choices all affect the outcome.

Question 7

How is AERO issued?

Accepted Answer

Under the mechanism described in the official documentation, AERO has weekly emissions: the protocol creates distributable AERO in each cycle and allocates it to the relevant pools according to veAERO voting results for each Gauge. Receiving more votes does not directly increase the proportion of an existing LP position; instead, it increases the share of emissions that the pool's Gauge makes available for staked liquidity to compete for during that cycle. Emission rules and parameters are protocol rules and should be determined by the formal documentation and effective governance outcomes for the relevant period.

Question 8

What was AERO's initial supply?

Accepted Answer

The official documentation states that AERO's initial supply was 500 million tokens, of which 450 million were distributed as veAERO. This describes the supply and distribution format at launch: veAERO means that the corresponding AERO entered locked voting positions, and it cannot be used to infer the freely tradable circulating supply then or now. The initial supply alone also does not describe subsequent weekly emissions, lock expiries, or market price.

Question 9

How do liquidity providers interact with the AERO mechanism?

Accepted Answer

Liquidity providers first deposit assets into a trading pool and obtain a liquidity position; if they stake that position in the corresponding Gauge, they can participate in AERO incentives according to the emissions received by that Gauge during the cycle and their individual share. Trading-fee and voting-incentive distributions are related to the veAERO Gauge voting mechanism, so “unstaked” should not simply be understood as the binary opposite of “staked,” with a guaranteed alternative fixed return. Providing liquidity also exposes the position to risks arising from price changes in the pool's assets.

Question 10

What are voting incentives?

Accepted Answer

Voting incentives are additional incentives provided by third parties for a specific Gauge, intended to attract veAERO holders to vote for that pool. The process is: incentives are deposited into the designated Gauge, veAERO holders vote, that Gauge receives more votes, and it can then compete for more AERO emissions in the next cycle; voters who meet the rules may participate in distributions of voting incentives related to that pool. Voting incentives do not guarantee that a pool will receive liquidity or trading volume; they only change the economic motivation for voting.

Question 11

Which network is AERO on, and how can its contract be identified?

Accepted Answer

AERO is deployed on the Base network. The AERO contract address listed on the official security page is 0x940181a94A35A4569E4529A3CDfB74e38FD98631. Before transferring, adding the token, or interacting with the contract, verify that the network is Base, that the address matches character by character, and that the access point comes from an official channel; a matching name or token ticker alone is insufficient to identify an asset.

Question 12

Where can I find official information about AERO?

Accepted Answer

Protocol mechanisms, locked-voting rules, and emission information are available in Aerodrome's official documentation; official contract identification information for AERO on Base can be checked on the security page. Users should distinguish between effective protocol rules, data displayed by the interface, and proposals that have not yet been implemented, and verify the actual transaction contents before taking on-chain actions.

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