AERO
AERO is the native token of the Aerodrome protocol, a ve(3,3) MetaDex on Base with largely immutable contracts and programmatic value flows to veAERO holders.
Aerodrome's core contracts are largely immutable with control of emissions given to veAERO holders via the gauge voting system. There are some minor areas in which privileged parties can control specific areas of the protocol, which are detailed below.
veAERO holders control emissions through epoch-based gauge voting. An EmergencyCouncil exists for crisis handling with limited emergency powers.
Voting System
AERO holders lock AERO in VotingEscrow to receive veAERO. veAERO holders vote each epoch on gauge weights via the Voter contract, and the Minter distributes emissions proportionally.
Emergency Council
Exists to handle contingencies. It can kill or revive gauges, update pool name and symbol metadata, and rotate the EmergencyCouncil itself.
veAERO holders indirectly control AERO emissions through epoch-based gauge voting executed by the Voter and Minter.
Emergency Council
Exists but is not elected by veAERO holders. It holds limited emergency powers, including killing or reviving gauges and managing pool metadata. This role exists explicitly for crisis handling and sits outside direct tokenholder election.
Core Aerodrome protocol contracts are non-upgradeable and do not use proxy patterns.
The AERO token contract is immutable and does not use a proxy pattern. The Minter contract, which is authorized to mint AERO, is also non-upgradeable.
AERO minting is fully programmatic and epoch-based (1 epoch = 1 week), enforced by the non-upgradeable Minter contract.
Minter Contract
The non-upgradeable Minter contract enforces programmatic emission rules.
Emission Rate
Can be increased/decreased by governance but only in fixed, small, weekly increments of +/-0.01%.
Growth Emissions
Mints growth emissions for veAERO holders using the formula: weeklyEmissions * (1 - veAERO.totalSupply / AERO.totalSupply)^2 * 0.5. This creates a counter-cyclical incentive where veAERO rewards decrease as more AERO is locked.
Team Emission Rate
Currently set to 0% of total weekly emissions.
The feeManager role exists which is controlled by a Safe multisig, not veAERO holders. This role can modify fee parameters across both pool types.
Fee Manager Role
The feeManager role is controlled by a Safe multisig and can modify fee parameters.
Non-SlipStream Fees
Fees are set on the PoolFactory which can be changed by the feeManager.
SlipStream Fees
For CLPoolFactory, fees are set inside the SwapFeeModule which allows feeManager to change fees.
The AERO token has no blacklist, pause, or seizure mechanisms.
Team Rate
The team rate (share of weekly emissions allocated to the team) can be modified by a Safe controlled by the Aerodrome team.
Emission Rate
Changes to the weekly emission rate (+/-0.01% or unchanged) are controlled by Governor (a multisig), soon to be handed over to governance contracts controlled by veAERO holders.
veAERO holders receive growth emissions and trading fees from staked LP positions. There is no protocol treasury - all trading fees are distributed. Offchain brand controlled by Aerodrome Foundation.
veAERO holders receive rewards from growth emissions and trading fees from staked LP positions.
Growth Emissions
veAERO holders receive rewards from growth emissions transferred to RewardDistributor, claimable in proportion to ve balance.
Non-Slipstream Trading Fees
For normal pools, swap fees from LPs who have staked their LP tokens in gauges go to veAERO holders.
Slipstream Trading Fees
For Slipstream (CL) pools, swap fees from staked LP positions go to veAERO holders.
There is no protocol treasury. All trading fees from swapping pools are distributed to veAERO holders and LPs.
veAERO holders control:
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The AERO rewards they receive by locking AERO tokens in VotingEscrow
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The AERO emissions going into gauges by voting for them in Voter
Note: Fee parameters are controlled by the feeManager (a Safe multisig), not by veAERO holders directly.
Locking Control
veAERO holders control their rewards by locking AERO in VotingEscrow.
Gauge Voting
veAERO holders direct emissions by voting for gauges in the Voter contract.
Aragon has not verified additional offchain value accrual flows to the AERO token
AERO token source is publicly available on GitHub and verified on Basescan. Aerodrome protocol contracts are open source and verified.
The AERO token contract source code (Aero.sol) is publicly available on GitHub and verified on Basescan.
Aerodrome protocol contracts (including Slipstream) are open source on GitHub.
Distribution of AERO and veAERO voting power outside of the core team has not been independently verified.
Distribution of AERO and veAERO voting power outside of the core team has not been independently verified.
Future AERO unlocks are determined by the supply schedule and the veAERO system detailed above. Aragon is not aware of any significant vesting cliffs.
US AERODROME trademark is held by Perpetual Cyclist Services LLC (Delaware). Primary interface terms identify the Aerodrome Foundation as the contracting party.
A US AERODROME trademark filing lists Perpetual Cyclist Services LLC (Delaware) as the applicant/owner.
The primary interface terms identify the Aerodrome Foundation as the contracting party.
Aragon has not yet verified all the licensing criteria associated with the AERO token or the corresponding protocol and assets
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