Ethereum Updates Today: Aero Connects Blockchains as DeFi Moves Entirely On-Chain

Aerodrome and Velodrome Combine to Launch Aero, Broadening Cross-Chain DeFi Platform on

The unification of Aerodrome and Velodrome, two prominent decentralized exchanges (DEXs) operating on Base and

respectively, has resulted in the creation of , a consolidated cross-chain liquidity hub scheduled to debut in Q2 2026. Developed by Dromos Labs, this new protocol seeks to unify liquidity across Ethereum’s 2 ecosystems, with plans to expand to Ethereum’s mainnet and Circle’s Arc blockchain, aiming to serve as a scalable foundation for the onchain financial sector.

Aero’s token distribution reflects the total value locked (TVL) of the original platforms, granting Aerodrome holders 94.5% of the AERO tokens and Velodrome holders 5.5%.

This allocation highlights Aerodrome’s larger presence, currently overseeing $479 million in TVL versus Velodrome’s $55 million, according to a . The distribution is designed to provide fair incentives for participants and prevent excessive dilution, a structure commended by DeFi governance specialists for its alignment with market dynamics, as mentioned in a .

Aero brings

, intended to minimize value loss, cut expenses, and boost trading performance. Notable elements include , which collects gains from arbitrage bots, and , allowing users to trade across chains from one platform. The protocol will further enable , supporting institutional access through regulatory-compliant attestations, as detailed in a .

By expanding to Ethereum mainnet and Circle’s Arc—a Layer 1 tailored for stablecoins—Aero aims to broaden liquidity options and draw institutional investors. Alexander Cutler, CEO of Dromos Labs, underscored Aero’s mission to connect Ethereum’s fragmented landscape: "Just as the world came online, it is now coming onchain," according to a

.

The merger has triggered price swings in both AERO and VELO tokens. Early November saw AERO climb 10%, bouncing from $0.75 to $0.901, fueled by large investor accumulation and lower exchange withdrawals, as reported in a

. However, team repurchases have dropped by 20%, sparking questions about ongoing demand. At the same time, Velodrome’s VELO token fell 13%, indicating short-term market uncertainty during the transition, as highlighted in a .

Aero’s main competitor is

, which recently introduced its "UNIfication" governance initiative to activate protocol fee switches and decrease UNI token supply, as outlined in a . Observers suggest Aero’s emphasis on Layer 2 optimization and cross-chain connectivity may set it apart, especially as Base and Optimism continue to grow.

The merger tackles liquidity fragmentation by pooling assets from Base, Optimism, and Ethereum. Forecasts indicate Aero could secure 10–15% of Layer 2 DEX trading volume, surpassing $2 billion monthly, according to a

. Luis de la Cerda, executive director for both Aerodrome and Velodrome foundations, pointed to the platform’s capacity to "operate at a scale no other token has ever reached," leveraging MetaDEX03 to coordinate cross-chain economic activity, as referenced in a .

Importantly, Aero’s strategy stands in contrast to recent unsuccessful DeFi consolidations, such as the failed partnership among Fetch.ai, SingularityNET, and Ocean Protocol. By ensuring unified governance and clear on-chain migration, Aero seeks to sidestep the risks of fragmentation, as reported in a

.

With its launch targeted for Q2 2026, Aero’s future will depend on its ability to deliver technical improvements, attract liquidity providers, and compete in the evolving DEX market. For now, the merger marks a significant move toward a more interconnected DeFi ecosystem, prioritizing scalability and performance over isolated solutions.