Deep Dive
1. Slipstream Liquidity Pools (May 2024)
Overview: Slipstream is Aerodrome’s custom concentrated liquidity pool design, aiming to boost trading volume per TVL by 10x compared to standard clAMM pools. It uses adjustable tick spacing and fee algorithms to attract high-volume traders.
This upgrade allows liquidity providers to earn higher fees from tighter spreads, particularly for stablecoin and ETH pairs. Slipstream now handles ~35% of Aerodrome’s total volume, rivaling Uniswap v3 on Base.
What this means: This is bullish for AERO because deeper liquidity attracts more traders, increasing protocol fees and rewards for veAERO voters. (Source)
2. Automated Liquidity Management (In Audit)
Overview: A pending upgrade uses AI to dynamically adjust liquidity concentration around current prices, minimizing slippage for large trades. The system auto-rebalances LP positions to maintain optimal depth.
The feature is undergoing third-party audits, with a tentative Q4 2025 release. Early simulations suggest it could reduce slippage by 40% for trades above $1M.
What this means: This is neutral for AERO short-term (delayed implementation) but bullish long-term, as institutional traders may migrate to Aerodrome for better execution. (Source)
3. Relay Auto-Voting System (2024)
Overview: Relay automates veAERO reward compounding, letting protocols and users reinvest voting incentives without manual intervention. Over 12.7% of veAERO supply now uses this system.
Partners like Flight School and 20 protocols leverage Relay to grow their governance influence passively, creating a self-reinforcing liquidity flywheel.
What this means: This is bullish for AERO because it stabilizes long-term voter participation, reducing sell pressure from unlocked rewards. (Source)
Conclusion
Aerodrome’s codebase advances prioritize liquidity efficiency (Slipstream), scalability (automated management), and governance sustainability (Relay). While audit timelines introduce short-term uncertainty, these upgrades position AERO to capitalize on Base’s growth. How might Slipstream’s adoption rate impact AERO’s fee revenue in Q4?