A new era for decentralized trading on Ethereum is taking shape. Two major Layer-2 exchanges, Aerodrome on Base and Velodrome on Optimism, are joining forces to form Aero, a next-generation decentralized exchange that will stretch across both Ethereum Mainnet and Circle’s upcoming Arc blockchain when it launches in mid-2026.
- Aerodrome (Base) and Velodrome (Optimism) will merge to form Aero.
- Aero will debut in Q2 2026 on Ethereum Mainnet and Circle’s Arc blockchain.
- Combined TVL exceeds $530 million with nearly $190 million in annual fees.
The merger brings together two of the busiest liquidity venues on Ethereum’s scaling networks, aiming to replace fragmented ecosystems with a single protocol that can handle trading activity across multiple chains. Aero will serve as a central liquidity hub for all users in the Ethereum universe — from retail traders on public chains to institutions operating on permissioned infrastructure.
Behind the integration is Dromos Labs, which has developed a new system called METADEX03 to power the combined platform. The technology introduces several experimental features — including built-in MEV auctions, a dual-engine liquidity model for capital efficiency, and “MetaSwaps,” a mechanism that allows assets to move between chains in one step.
Dromos CEO Alexander Cutler described Aero as an inflection point for decentralized trading, saying it’s designed to make Ethereum operate as a single connected economy rather than a patchwork of separate Layer-2 environments.
Context: The Battle for DeFi Liquidity
Ethereum’s decentralized exchange scene has become increasingly competitive. Uniswap, the dominant player, is currently worth nearly $5 billion in total value locked (TVL) across 42 integrated networks. Earlier this week, Uniswap Labs and its foundation unveiled a new governance initiative called “UNIfication” to activate the long-delayed fee switch — a mechanism that will start redirecting protocol revenue toward UNI token holders. The plan also proposes burning 100 million UNI tokens to manage supply.
That tightening competition makes Aero’s timing deliberate. By merging two Layer-2 DEXs that already generate significant trading fees, Aero is positioning itself as the first cross-chain rival to Uniswap with both public and permissioned blockchain reach.
The Numbers Behind the Merger
Together, Aerodrome and Velodrome represent a substantial liquidity footprint. Aerodrome has approximately $480 million locked and over $180 million in annual trading fees, while Velodrome contributes $56 million in TVL and $7 million in fees, according to DeFi Llama.
Luis A. de la Cerda, who oversees both exchange foundations, said the merger will extend their proven MetaDEX framework to users far beyond the Base and Optimism ecosystems. He framed Aero as an open infrastructure layer that “connects every Ethereum user to the same pool of liquidity, regardless of which chain they use.”
A Glimpse Into 2026
Once launched, Aero will become one of the first DeFi protocols to operate simultaneously on Ethereum’s permissionless mainnet and Circle’s Arc, a permissioned blockchain tailored for compliant institutional finance. Analysts expect that combination to attract both everyday DeFi traders and traditional firms exploring tokenized markets.
If successful, Aero could redefine what interoperability looks like for decentralized exchanges — moving the industry closer to a model where cross-chain trading feels as seamless as using a single network.
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Source: https://coindoo.com/two-altcoin-projects-to-merge-into-one-unified-dex-on-ethereum/