Aerodrome and Velodrome Finance to Merge into New Protocol 'Aero' on October 21

Aerodrome and Velodrome Finance are set to merge into a new protocol named Aero, with the combination scheduled to begin on October 21, 2026, at 8:00 p.m. ET. This strategic move aims to expand market reach across multiple Ethereum Virtual Machine (EVM) chains, consolidating the two decentralized exchanges into a unified entity.

The merger, first revealed in November 2025, was initially targeted for Q2 2026. The new protocol, Aero, is designed to operate across various EVM ecosystems, targeting a combined addressable market estimated at over $63 billion, a significant increase from the previous $7 billion market.

Under the terms of the merger, existing AERO tokens will be swapped 1:1 for the new AERO token. Holders of Velodrome Finance’s VELO token will receive approximately 0.044 new AERO per VELO token. Following the swap, Aerodrome stakeholders are allocated 94.5% of the new token supply, while Velodrome stakeholders will receive the remaining 5.5%.

Aerodrome, the leading decentralized exchange on Coinbase’s Base layer-2 network, currently holds approximately $393 million in total value locked (TVL) on Base, with broader estimates placing its TVL between $390 million and $411 million as of early October 2026. The combined TVL of Aerodrome and Velodrome was around $422 million as of October 9, 2026.

Post-merger, the protocol plans to direct 100% of its revenue to participants. Holders of sAERO will transition from a weekly voting system to real-time reward allocation. Legacy token emissions will cease as part of this transition.

Aerodrome launched on Base in late August 2023 and quickly established itself as a significant liquidity hub, utilizing vote-escrowed tokenomics where users lock tokens for governance power and rewards. The longer the lock, the greater the influence.

While the merger aims to create a more expansive and unified protocol, uncertainties remain regarding the exact completion time and the precise value of AERO post-merger. The combination is expected to streamline operations and enhance market presence for both founding protocols within the broader EVM landscape.

Why This Matters

The materials describe a narrow update: Aerodrome, a decentralized exchange on Coinbase’s Base network, is merging with Velodrome Finance. The exact date and time of the merger completion.

Broader Context

Source materials place the factual news in this context: Aerodrome launched on Base in late August 2023. It quickly became a top liquidity hub on the network, driven by vote-escrowed tokenomics and its fee mechanisms.