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

When you’re trading crypto on a Layer 2 network, you don’t want to be stuck paying high gas fees or dealing with slippage. That’s where Aerodrome Finance comes in. It’s not just another decentralized exchange - it’s the beating heart of the Base blockchain, handling over half of all locked value on the network. If you’re trading tokens like WBTC, USDbC, or even obscure Base-native coins, Aerodrome might be the only DEX you need. But is it right for you? Let’s break it down.

What Is Aerodrome Finance?

Aerodrome Finance is a decentralized exchange (DEX) built on Base - Coinbase’s Ethereum Layer 2 scaling solution. It launched on August 31, 2023, and quickly became the dominant trading platform on the network. Unlike Uniswap, which spreads its liquidity across multiple chains, Aerodrome focuses entirely on Base. This laser focus lets it optimize everything: fees, rewards, and liquidity efficiency.

At its core, Aerodrome uses concentrated liquidity pools - the same tech Uniswap V3 and Curve rely on - but with a twist. Instead of spreading your money thinly across a wide price range, you lock it into tighter bands. That means less slippage, better rates, and more trading volume per dollar you provide. The result? A DEX that handles $1.24 billion in total value locked (TVL) and generates over $1 million in weekly trading fees.

The Dual-Token System: AERO and veAERO

Here’s where Aerodrome gets really interesting. It doesn’t just use one token - it uses two, and they work together like gears in a machine.

• AERO is the native ERC-20 token. You earn it by providing liquidity, and you can trade it on exchanges.
• veAERO is an ERC-721 token you get when you lock up your AERO. The longer you lock it (up to 4 years), the more veAERO you receive. And veAERO isn’t just for show - it gives you voting power on protocol upgrades, fee structures, and reward distributions.

This is called veTokenomics. It’s not unique to Aerodrome - Curve pioneered it - but Aerodrome uses it better. While Uniswap rewards liquidity providers with nothing but trading fees, Aerodrome hands out AERO tokens on top. That means you’re not just earning from swaps - you’re earning from rewards. For yield farmers, this is a big deal. Some users report annual percentage yields (APYs) over 30% by combining liquidity provision with AERO staking.

How Fees Compare to Uniswap and Other DEXes

Trading fees on Aerodrome range from 0.01% to 0.3%, depending on the pair. That’s lower than Uniswap’s standard 0.3% fee for most pairs. But here’s the catch: Uniswap doesn’t pay you anything extra. Aerodrome does.

Let’s say you’re swapping USDbC for WETH. On Uniswap, you pay 0.3% and that’s it. On Aerodrome, you pay 0.05% - and you get AERO tokens added to your wallet. Those tokens can be staked for more rewards, or sold if the price moves up. Over time, that adds up. One user on Reddit calculated that over six months, their AERO rewards covered 40% of their total trading fees.

Compared to other Layer 2 DEXes like SushiSwap or PancakeSwap, Aerodrome still wins on fee efficiency and reward structure. Even though it’s newer, its combination of low fees + high rewards makes it hard to beat on Base.

Performance and Liquidity

Liquidity matters. A DEX with deep pools gives you tighter spreads and less slippage. Aerodrome has it. With $1.24 billion locked, it controls roughly 50% of all DeFi value on Base. That’s more than every other DEX on the chain combined.

For comparison:

Uniswap still wins in total liquidity and brand recognition. But if you’re trading tokens native to Base - like ETH, USDbC, or even new projects like TIA or JASMY - Aerodrome’s liquidity is deeper and more stable. You’ll get better prices and fewer failed trades.

AERO Token Price History

The AERO token has been wild. It launched at $0.37 in August 2023. By April 2024, it hit $2.00. Then it dropped to $0.42 in July. But it didn’t die - it came back. In December 2024, it peaked at $2.30. As of March 2025, it was trading around $1.30, ranking as the 121st largest crypto by market cap.

Price predictions for 2025 vary. Some analysts say it could hit $1.10 by year-end. Others think it might dip below $0.80 if Base adoption slows. The truth? AERO’s value is tied to two things: how many people use Aerodrome, and how much they stake. If Base keeps growing - and Coinbase keeps pushing it - AERO has room to rise. If not, it could stagnate.

Who Is Aerodrome For?

Not everyone needs Aerodrome. Here’s who it’s best for:

• Base users - If you’re already on Base, Aerodrome is your natural home. Low fees, high rewards, deep liquidity.
• Yield farmers - If you’re chasing APYs over 20%, AERO rewards make this one of the best places to stake liquidity.
• Long-term holders - Locking AERO for veAERO gives you voting power and boosts rewards. The longer you lock, the better the returns.

Who should avoid it?

• Traders who want ETH or BTC - Uniswap has way more depth on major assets. If you’re swapping ETH for USDT, stick with Uniswap.
• Beginners confused by tokenomics - veAERO, staking, gauges, vote escrow - it’s complex. If you don’t understand how locking tokens boosts rewards, you’ll miss out.
• People scared of volatility - AERO’s price swings are real. Don’t invest more than you’re okay losing.

Pros and Cons

• Pros:
  • Lowest fees on Base
  • Best yield farming rewards in the L2 space
  • Deep liquidity for Base-native tokens
  • Strong backing from Coinbase
  • Intuitive UI for DeFi users
• Cons:
  • Only useful if you’re on Base
  • AERO token is volatile
  • Learning curve for veTokenomics
  • No mobile app yet (web-only)

What’s Next for Aerodrome?

The future looks bright. Coinbase has been quietly expanding Base’s user base - integrating it into Wallet, encouraging developers to build on it, and pushing retail adoption. More users mean more trades. More trades mean more fees. More fees mean more AERO rewards.

There are rumors of new features: cross-chain bridging, options trading, and a mobile app. If those arrive, Aerodrome could become more than just a Base DEX - it could become a gateway for mainstream crypto users.

But it’s not guaranteed. DeFi is competitive. If another protocol builds a better model on Base - or if Ethereum Layer 3s steal attention - Aerodrome could lose momentum. Its edge right now is timing: it launched right as Base started growing, and it nailed the incentives.

Final Verdict

Aerodrome Finance isn’t the biggest DEX. It’s not the oldest. But if you’re trading on Base, it’s the smartest choice. The combination of low fees, high rewards, and deep liquidity is unmatched in its niche. For yield farmers, it’s a goldmine. For everyday traders, it’s faster and cheaper than the alternatives.

Just don’t treat it like Uniswap. Don’t use it for ETH or BTC swaps. Don’t ignore the veAERO system. Learn it. Use it. Lock your AERO. That’s where the real value is.