How Aerodrome Is Rewriting the Rules of DeFi

Aerodrome may not be a household name in DeFi yet, but the scrappy exchange isn't shy about plans to change that in 2026.

In representing Aerodrome in our Crypto Project of the Year showcase, Dromos Labs CEO Alex Cutler joined Coinage to discuss how the project is preparing to leverage its lead on Base, Coinbase's Layer-2, to come for Ethereum mainnet.

“If [Aerodrome] captures even just about 30% of mainnet in volume, fees, TVL, AERO would now be the single largest exchange anywhere in DeFi,” Cutler said in a new interview. “And that would be such a paradigm shift.”

Aerodrome’s approach is different from what Uniswap pioneered and what a number of other DeFi platforms offer. Whereas Uniswap focused on optimizing trading mechanics with its AMM innovations, Aerodrome has positioned itself more like an operating system, Cutler says, combining the best of Uniswap, Curve, Convex, and other DeFi primitives into a single design that “maximally captures and redistributes value to users.”

That approach has already powered two major exchanges: Velodrome on Optimism and Aerodrome on Base. Now, under what Dromos calls “Meta DEX v3,” those two ecosystems will merge into one product: Aero. And it’s expanding to Ethereum mainnet.

Cutler said the move will “verticalize and integrate” all exchange-related products and revenue streams into “a single economic system” that compounds value for users. And as demonstrated again this week, one of the most promising new pieces of that model is a novel way to launch tokens.

While many token launches still follow a playbook reliant on centralized exchanges and costly market-making firms, Aerodrome has introduced a launchpad called Ignition that attempts to change the dynamic. Projects don’t have to give away 10% of their supply to get listed anymore. Ignition flips that model by letting users vote for pools before they exist — placing emissions as bets on tokens that don’t yet have a price.

“It’s in essence an auction,” Cutler explained. “Voters who lock AERO vote for a pool, giving up opportunity cost to direct rewards toward a token with no price. Then they have to back their bet, pairing that token with ETH or USDC and providing liquidity.” The process creates organic price discovery without centralized interference or sniper bots gaming the launch.

It’s a more complex system, Cutler admitted. “But it’s a more rewarding game because it’s a fair one.”

Coinage reached out to Uniswap, another nominated project this year in our series, but the project was not able to make a representative available.

Going back and forth on X to start the year, Cutler has been vocal in clashes with Uniswap founder Hayden Adams. Uniswap offers similar token launch functionality the project calls Continuous Clearing Auctions. But in comparing the revenues across both platforms, Adams called Aerodrome's figures "misleading."

Shooting back, Cutler raised concerns with token allocations held by the Uniswap Foundation and the paradigm that has resulted from many projects raising VC funding in exchange for massive token allocations.

“Tokens go to foundations, to teams, to DevCos… every time one enters circulation, it gets sold to pay bills. And token holders know that’s a cost," he said. “We’ve never sold any tokens, and we never will ... They can use their locked positions to earn revenue… you're not in an adversarial position with token holders.”

This alignment model, where every contributor earns rewards the same way as any other locker, creates a different incentive structure than most of crypto. But as that battle plays out, Cutler isn’t shy about the stakes. “We think we've got a winning solution here,” he said. “The only way to win is to reward [liquidity providers] maximally.”

It’s the same logic that fueled SushiSwap’s vampire attack on Uniswap years ago, but this time the attack vector is deeper. Aerodrome isn’t just targeting LPs; it’s targeting every value stream a DEX touches: launches, swaps, liquidity incentives, and wrapping them all into a token with real economic gravity.

“If we provide the best experience for any of those [use cases], they’ll have to use us,” Cutler said. “And if each of those groups act in their own rational self-interest, more traders means more rewards for lockers. More rewards for lockers means better rewards for LPs. Which means better execution. And that’s that flywheel.”

As the project expands into Ethereum mainnet and beyond, Cutler sees one principle guiding it all: “The only viable moat in this new onchain economy is going to be maximum value distribution to users.”

If token allocations in Grayscale's DeFi fund are any indication, Aerodrome still has significant room to run (and share to gain from Uniswap.) Uniswap commands about 42% of the weighting in the fund, while Aerodrome sits at about 5%.

Coinage Caucus and Network NFT holders, along with $COINAGE holders on Base and BAT holders on Ethereum can vote to advance Uniswap or Aerodrome in our Crypto Project of the Year series when voting opens (must be holders by the time the snapshot is taken.)

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