Aerodrome is a revenue-generating DeFi protocol that annually generates over $100 million in income for its token holders. Unlike other protocols, Aerodrome shares 100% of its revenue directly with its token holders. This model has enabled Aerodrome to rapidly grow and achieve massive success in just one year. With its innovative locking mechanisms and income distribution models, Aerodrome is emerging as a prominent player in the DeFi space.

One of Aerodrome's defining features is its commitment to distributing 100% of the protocol’s revenue directly to its token holders. This revenue comes from:

• 100% transaction fees
• 100% rewards (bribery) These earnings are distributed to holders of locked veAERO tokens through a voting pool. This means that not only does Aerodrome not take intermediary fees, but it also offers a highly efficient revenue distribution system that benefits every token holder.

Aerodrome employs the ve(3,3) model, a voting-based mechanism that encourages long-term token holders to lock their tokens and participate in voting for AERO emissions and reward allocation. Users can lock their AERO tokens to receive veAERO, which grants voting power. The longer the lock-up period, the greater the voting power and rewards. By locking tokens as veAERO, token holders not only receive transaction rewards but also have a say in the governance of the protocol.

Aerodrome’s Slipstream AMM is another major innovation, inspired by Uniswap v3 but optimized further. Slipstream allows liquidity providers (LPs) to provide liquidity within a wider price range, offering more flexibility and higher rewards through adjustable fees. This mechanism ensures that LPs can continue to earn consistent returns even during low market volatility or trading volume.

To encourage liquidity providers (LPs) to continue supplying liquidity, Aerodrome offers liquidity incentives that are more attractive than those offered by other protocols. Through bribery and incentive schemes, users are encouraged to support their liquidity pools, which in turn boosts trading volume and revenue. This mechanism not only enhances the stability of liquidity pools but also maximizes transaction volume and fee income.

Aerodrome’s token, AERO, is not only a governance token but also an asset that generates higher rewards when locked. By locking AERO into veAERO, users earn transaction fees, rewards, and rebase income. Additionally, a portion of AERO emissions is allocated as anti-dilution protection to veAERO holders, helping to mitigate the effects of inflation.

Aerodrome’s primary revenue sources include:

• Transaction Fees: Every transaction on the platform contributes to the revenue, with a portion of the fee distributed to LPs and token holders.
• Bribes/Rewards: Other protocols or users provide rewards (or bribes) to incentivize token holders to vote for a specific liquidity pool. Pools supported by votes receive additional AERO token emissions.

Aerodrome distributes its protocol revenue weekly to veAERO holders, with the sources including transaction fees and bribes. These funds are 100% passed on to veAERO holders. Compared to other DeFi protocols, Aerodrome's distribution model significantly increases the returns for token holders.

For example, in 2024, Aerodrome has already distributed over $110 million in income to its holders. This achievement is especially impressive as it was accomplished without any venture capital support, driven solely by the community’s efforts.

As the Aerodrome ecosystem continues to expand, the protocol’s trading volume and TVL (Total Value Locked) have been steadily increasing. Currently, Aerodrome holds a dominant position on the Base chain, with trading volume and fee income surpassing many established DeFi protocols. The growing trading volume and fee generation within the Slipstream AMM pools are helping the protocol maintain strong growth momentum.

Looking ahead, Aerodrome is poised to further extend its ecosystem, potentially enhancing returns for token holders as more users and protocols join the network.

Compared to traditional decentralized exchanges like Uniswap, Aerodrome offers a stronger revenue-sharing model. Uniswap, for example, does not distribute the protocol's income directly to token holders, whereas Aerodrome returns 100% of its revenue to veAERO holders. This makes Aerodrome stand out in the DeFi space, especially as a revenue-sharing protocol. Aerodrome's success within a single year showcases the effectiveness and efficiency of its business model.

Through its innovative ve(3,3) locking mechanism, Slipstream concentrated liquidity AMM, and 100% revenue-sharing model, Aerodrome has rapidly gained attention and success in the DeFi space. Its fully community-driven operation and unique income distribution model not only generate substantial revenue but also provide sustainable returns to token holders.

With continued protocol optimizations and ecosystem expansion, Aerodrome is well-positioned to become a key player in DeFi, offering long-term value for its investors.