Aerodrome and Velodrome merge into Aero, targeting a $63 billion TVL market

Two of DeFi’s better-known liquidity hubs are becoming one. Aerodrome Finance and Velodrome Finance are merging into a single platform called Aero, and the pitch is all about reach.

According to the announcement, Aero will grow its addressable market from $7 billion to over $63 billion in total value locked. It will also serve chains that together handle $135 billion in monthly trading volume.

What the merger actually involves

The consolidation was announced in mid-November 2025. The integration is set to go live in October 2026.

The end product is meant to be simple on the surface. Users get one token and one interface instead of two of each.

Under the hood, Aero merges the existing ve(3,3)-style tokenomics that both Aerodrome and Velodrome run on. Holders lock up tokens for a period of time, receive voting power in return, and use that power to steer where new token rewards flow. Combining two of these systems into one means a single set of voters directing incentives across a much bigger map.

The unified protocol is planned to operate across chains including Base, Optimism, and Ethereum mainnet.

What happens to VELO holders

For anyone holding VELO, the key question is the swap. VELO holders are expected to convert into AERO at a defined ratio, with one proposed ratio set at 0.55:1. Put simply, under that proposal each VELO would become 0.55 AERO. The word doing the heavy lifting there is “proposed,” so holders should treat the figure as a draft rather than a signed contract.

Why fragmentation is the real target

The stated goal of the merger is to cut down on the inefficiencies created by fragmentation in Layer-2 ecosystems. Layer-2 networks are separate chains built on top of Ethereum to make transactions cheaper and faster. The catch is that each one tends to develop its own pool of liquidity. Money sitting on one chain does not automatically help a trader on another.

Aero is positioning itself as a single liquidity layer for Ethereum-aligned chains instead of a scattered collection of smaller pools.

What this means for traders and the DEX landscape

For liquidity providers, the draw is scale. A protocol that can tap into chains carrying $135 billion in monthly volume offers far more fee-generating opportunities than one confined to a narrower footprint.

That assumption matters. Serving chains with $135 billion in monthly trading volume is not the same as processing $135 billion in monthly trading volume. The figure describes the size of the pond, not the size of the catch.

The same logic applies to the $63 billion number. It reflects the total value locked across the markets Aero intends to serve, not deposits Aero already holds.

For AERO and VELO holders, the practical items to watch are clear. Keep an eye on whether the conversion ratio is finalized as proposed, how the merged ve(3,3) voting system is structured, and how quickly liquidity actually shows up on new chains once Aero goes live in October 2026.