Aerodrome Finance Crypto Exchange Review: Is It the Best DEX on Base?

Aerodrome Finance isn’t just another crypto exchange. It’s the beating heart of the Base blockchain - the Layer 2 network backed by Coinbase - and it’s where most of the action happens for traders and yield farmers who want low fees and high rewards. If you’re looking to trade tokens on Base without paying Ethereum-level gas fees, or if you want to earn consistent returns by providing liquidity, Aerodrome is one of the few platforms that actually makes sense. But it’s not as simple as swapping tokens. There’s a system behind it - veTokenomics, dual tokens, gauges, and rewards - and if you don’t understand how it works, you could be leaving money on the table.

What Is Aerodrome Finance?

Aerodrome Finance launched on August 31, 2023, as a decentralized exchange built specifically for the Base blockchain. Unlike centralized exchanges like Binance or Coinbase, Aerodrome doesn’t hold your funds. You trade directly from your wallet using smart contracts. It’s a DEX, or decentralized exchange, powered by an automated market maker (AMM), meaning trades happen through liquidity pools instead of order books.

It’s not a copy of Uniswap. It’s a refined version - built on Velodrome V2’s code, with improvements from Curve and Uniswap V3. The result? Better capital efficiency, lower slippage, and much higher yields for liquidity providers. It’s the most used DeFi protocol on Base, holding about $1.24 billion in total value locked (TVL), which is roughly half of everything on the entire network.

How Does Aerodrome Work?

Aerodrome runs on a dual-token system: AERO and veAERO. AERO is the native ERC-20 token you can buy, trade, or earn. veAERO is the vote-escrowed version - a non-fungible token (ERC-721) you get when you lock up your AERO for a set period.

Here’s the key: if you stake AERO to get veAERO, you unlock three things:

1. **Voting rights** - You decide how protocol fees are distributed among liquidity pools.
2. **Higher rewards** - The more veAERO you hold, the more AERO you earn from trading fees and incentives.
3. **Boosted yields** - Your liquidity positions get a multiplier, sometimes up to 2.5x, depending on how long you lock your tokens.

This system is designed to lock in long-term participants. It’s not a quick flip - it’s a strategy. If you’re just swapping tokens once a week, you’re missing the real power of Aerodrome. The magic happens when you provide liquidity and lock your AERO for 4 years. That’s when your rewards explode.

Trading on Aerodrome: Fees, Pairs, and Slippage

Aerodrome offers fee tiers from 0.01% to 0.3%, depending on the token pair. Stablecoin pairs like USDC/USDT run at 0.01%, while volatile pairs like AERO/WETH are at 0.3%. Compare that to Uniswap, where fees can be higher and don’t come with rewards. On Aerodrome, you’re not just paying to trade - you’re earning back part of that fee in AERO tokens.

The platform supports over 150 token pairs, mostly focused on Base ecosystem tokens like $OP, $MATIC, $USDbC, $GRAIL, and $WETH. It also supports bridged assets from Ethereum, Polygon, and Arbitrum. Slippage is low because of the high liquidity - especially in the top 20 pools. You won’t get the same depth on a random new token, but for the major pairs, trades execute fast and cleanly.

The interface is clean and familiar if you’ve used Uniswap or SushiSwap. Connect your wallet, pick your tokens, set your slippage (recommended: 0.5%-1% for stable pairs, 2%-3% for volatile ones), and click swap. No KYC. No delays. Just trade.

AERO Token: Price History and Market Performance

AERO launched at $0.37 on August 31, 2023. For months, it traded sideways below $0.50. Then, in March 2024, it started climbing. By April 14, it hit $2.00. A sharp drop followed, falling to $0.42 by July. But it didn’t die. In December 2024, it surged again, hitting a new all-time high of $2.30. As of January 2026, AERO trades around $1.40, with a market cap near $1 billion.

On CoinMarketCap, AERO ranked #121 in March 2025. That’s not top 50, but it’s solid for a protocol tied to a single Layer 2 chain. Analysts predict a possible average price of $1.00-$1.10 in 2025, with upside if Base adoption grows. The real driver? Coinbase. As more users enter Base through Coinbase Wallet, more will naturally flow into Aerodrome. That’s not speculation - it’s already happening.

Aerodrome vs Uniswap: Which One Should You Use?

Uniswap is the giant. It has $5.5 billion in TVL across Ethereum, Arbitrum, and Polygon. It’s the default choice for most DeFi users. But here’s the catch: Uniswap doesn’t pay you to provide liquidity. You earn trading fees, but no native token rewards. On Aerodrome, you earn AERO - and that’s where the real yield comes in.

Here’s a quick comparison:

If you’re only trading ETH or BTC, Uniswap is fine. But if you’re deep into Base tokens like $GRAIL, $OP, or $USDbC - and you want to earn more than just fees - Aerodrome wins. It’s the only DEX on Base that gives you a real reason to stick around.

Who Should Use Aerodrome?

Not everyone should use Aerodrome. Here’s who it’s for:

• Yield farmers - If you want to earn AERO tokens on top of trading fees, this is one of the best places to do it.
• Base ecosystem users - If you’re holding Base tokens or using apps like Coinbase Wallet, Aerodrome is your natural trading hub.
• Long-term holders - The veAERO system rewards locking up tokens. If you’re not planning to sell AERO soon, locking it gives you the best returns.
• DeFi beginners willing to learn - The interface is simple. The mechanics take time to understand, but the guides are solid.

Who should avoid it?

• Traders who want instant access to everything - If you need 500+ tokens across 10 chains, Aerodrome isn’t your platform.
• People who hate staking - If you don’t want to lock up tokens or manage veAERO, you’ll miss out on 70% of the value.
• Those seeking low-risk assets - AERO is volatile. It’s not a stablecoin. You’re betting on Base’s growth.

Is Aerodrome Safe?

Aerodrome’s smart contracts have been audited by reputable firms like CertiK and PeckShield. No major exploits have occurred since launch. The protocol is non-custodial - you control your keys. But safety isn’t just about code. It’s about ecosystem risk.

Base is backed by Coinbase, which gives it credibility. But it’s still a Layer 2. If Ethereum goes down, Base goes down. If Coinbase pulls support, adoption could slow. AERO’s price depends on user activity. If trading volume drops, rewards shrink.

There’s no FDIC insurance. No customer support hotline. If you send tokens to the wrong address, they’re gone. You’re responsible. That’s DeFi.

How to Get Started with Aerodrome

Here’s how to start earning on Aerodrome in five steps:

1. Get a wallet - Use MetaMask or Coinbase Wallet. Make sure it’s connected to the Base network.
2. Buy AERO - Swap ETH, USDC, or USDbC for AERO on Aerodrome or a centralized exchange like Coinbase.
3. Add liquidity - Pick a pair (like AERO/USDbC), deposit equal value, and confirm the transaction.
4. Lock AERO for veAERO - Go to the veAERO section, stake your AERO, and choose a lock period (up to 4 years). Longer lock = higher rewards.
5. Claim rewards - Check your dashboard weekly. AERO rewards are auto-claimed, but you can also vote on gauge weights to earn more.

Pro tip: Start with a 1-year lock. Test the system. Then scale up.

The Future of Aerodrome

Aerodrome’s future is tied to Base’s growth. And Base is growing - fast. Coinbase is pushing it hard. More retail users are joining. More projects are launching on Base. More liquidity is flowing in.

Aerodrome’s fee revenue has been rising every week since April 2025. TVL keeps climbing. The veToken system is working exactly as designed: it keeps users locked in, rewards them, and aligns incentives.

Could it be overtaken? Maybe. But right now, there’s no other DEX on Base that comes close. If Base becomes the dominant Ethereum Layer 2, Aerodrome could become one of the top 5 DeFi protocols in the entire crypto space.