[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  gromit (☕️,🧀) [@0xCheeeese](/creator/twitter/0xCheeeese) on x XXX followers Created: 2025-07-08 09:04:37 UTC Performance Summary: Aerodrome dominates @base : It leads @Uniswap across volume ($180B vs $129B), liquidity (2.3x TVL - though XX% of this TVL is inorganic 👀), and revenue ($131.9M annualized, fully distributed to veAERO holders). Revenue quality is high: Majority comes from trading fees, not bribes. Due to low fees, a portion of this is arbitrage-driven, which is less sticky. Strong fundamentals, undervalued token: Despite high revenues, AERO trades at a low 3.2x revenue multiple, suggesting undervaluation. Meaningful barriers to revenue access reduce appeal. AERO’s low revenue multiple limits scalability of the protocol itself: Because Aerodrome relies on emissions to incentivize LPs, token value is critical to sustaining growth. In high-volume pools like WETH/USDC, trading fees can exceed emissions, making the model less effective when usage is high. This makes a higher revenue multiple essential, not just for investors, but for protocol health. Yet the multiple has fallen from 15.1x to 2.5x over the past year, weakening Aerodrome’s ability to scale through its current incentive structure. Emissions largely re-locked, reducing dilution — but only for new supply: ~50% of AERO emissions are max-locked each epoch, and the average lock duration has stabilized around XXX years. This has caused circulating supply to plateau, effectively taking most new tokens off the market and meaning emissions are not translating into immediate sell pressure; a clear positive. However, this mechanism only impacts new supply. Around XX% of total AERO remains unlocked, and despite high APYs, demand to lock existing tokens has stalled. These holders are, by definition, less aligned and more likely (and able) to sell, which introduces persistent structural risk. Future Outlook Summary: Base outperformance is both a strength and a risk: Aerodrome’s fate is tied to Base. @coinbase support and upcoming tech upgrades (e.g., Flashblocks) are positives, but reliance on Base’s growth, and $USDC dominance, creates fragility. Competitive pressures rising: New rollups (e.g. @megaeth_labs), L1 improvements, and @solana performance (esp. in retail which is a key sector for Base) threaten market share. Limited retail/institutional pull: Complexity and lack of developer tooling (e.g., APIs) limit adoption. Misses memecoin and consumer app flows captured by Uniswap on Base. Base itself is seeding retail flows to @solana. Stablecoin and RWAs - an opportunity with unclear upside: While Base leads in stablecoin volume, Aerodrome captures little of it. This could change as e.g., onchain fx grows (an area where Base currently leads), representing a significant future opportunity for Aero. RWA activity on Base remains minimal with issuers (e.g. Securitize) choosing other chains despite Coinbase's institutional relationships. Aero's complex model makes institutional interest unclear. Cross-chain and routing future is double-edged: Execution quality may matter more than brand in the future as wallets/agents/aggregators route trades based on optimal execution. This could help Aerodrome. which may have more room to lower pool fees as LPs are paid with AERO tokens, not trading fees. But fee wars and routing-based trading could erode revenues, creating a negative flywheel. Strategic edge in emissions flexibility: Protocol-owned emissions and ve(3,3) design allow Aerodrome to subsidize liquidity in downturns better than peers, but revenue needs to keep pace. Verdict: Aerodrome remains a high-performing, capital-efficient DEX with strong fundamentals on a fast-growing chain. But its long-term edge depends on whether it can adapt to a more competitive, cross-chain, institutional, and embedded future, or whether it remains locked in a model optimized for an earlier phase of DeFi. Here's the full report: XXX engagements  **Related Topics** [holders](/topic/holders) [$1319m](/topic/$1319m) [tvl](/topic/tvl) [$129b](/topic/$129b) [$180b](/topic/$180b) [uniswap](/topic/uniswap) [Post Link](https://x.com/0xCheeeese/status/1942510121973645780)
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gromit (☕️,🧀) @0xCheeeese on x XXX followers
Created: 2025-07-08 09:04:37 UTC
Performance Summary:
Aerodrome dominates @base :
It leads @Uniswap across volume ($180B vs $129B), liquidity (2.3x TVL - though XX% of this TVL is inorganic 👀), and revenue ($131.9M annualized, fully distributed to veAERO holders).
Revenue quality is high:
Majority comes from trading fees, not bribes. Due to low fees, a portion of this is arbitrage-driven, which is less sticky.
Strong fundamentals, undervalued token:
Despite high revenues, AERO trades at a low 3.2x revenue multiple, suggesting undervaluation. Meaningful barriers to revenue access reduce appeal.
AERO’s low revenue multiple limits scalability of the protocol itself:
Because Aerodrome relies on emissions to incentivize LPs, token value is critical to sustaining growth. In high-volume pools like WETH/USDC, trading fees can exceed emissions, making the model less effective when usage is high. This makes a higher revenue multiple essential, not just for investors, but for protocol health. Yet the multiple has fallen from 15.1x to 2.5x over the past year, weakening Aerodrome’s ability to scale through its current incentive structure.
Emissions largely re-locked, reducing dilution — but only for new supply:
~50% of AERO emissions are max-locked each epoch, and the average lock duration has stabilized around XXX years. This has caused circulating supply to plateau, effectively taking most new tokens off the market and meaning emissions are not translating into immediate sell pressure; a clear positive.
However, this mechanism only impacts new supply. Around XX% of total AERO remains unlocked, and despite high APYs, demand to lock existing tokens has stalled. These holders are, by definition, less aligned and more likely (and able) to sell, which introduces persistent structural risk.
Future Outlook Summary:
Base outperformance is both a strength and a risk:
Aerodrome’s fate is tied to Base. @coinbase support and upcoming tech upgrades (e.g., Flashblocks) are positives, but reliance on Base’s growth, and $USDC dominance, creates fragility.
Competitive pressures rising:
New rollups (e.g. @megaeth_labs), L1 improvements, and @solana performance (esp. in retail which is a key sector for Base) threaten market share.
Limited retail/institutional pull:
Complexity and lack of developer tooling (e.g., APIs) limit adoption. Misses memecoin and consumer app flows captured by Uniswap on Base. Base itself is seeding retail flows to @solana.
Stablecoin and RWAs - an opportunity with unclear upside:
While Base leads in stablecoin volume, Aerodrome captures little of it. This could change as e.g., onchain fx grows (an area where Base currently leads), representing a significant future opportunity for Aero.
RWA activity on Base remains minimal with issuers (e.g. Securitize) choosing other chains despite Coinbase's institutional relationships. Aero's complex model makes institutional interest unclear.
Cross-chain and routing future is double-edged:
Execution quality may matter more than brand in the future as wallets/agents/aggregators route trades based on optimal execution. This could help Aerodrome. which may have more room to lower pool fees as LPs are paid with AERO tokens, not trading fees. But fee wars and routing-based trading could erode revenues, creating a negative flywheel.
Strategic edge in emissions flexibility:
Protocol-owned emissions and ve(3,3) design allow Aerodrome to subsidize liquidity in downturns better than peers, but revenue needs to keep pace.
Verdict:
Aerodrome remains a high-performing, capital-efficient DEX with strong fundamentals on a fast-growing chain. But its long-term edge depends on whether it can adapt to a more competitive, cross-chain, institutional, and embedded future, or whether it remains locked in a model optimized for an earlier phase of DeFi.
Here's the full report:
XXX engagements
