Key Concepts
What Problem Does iAERO Solve?
Aerodrome's veAERO model creates a dilemma: lock your AERO for up to 4 years to maximize voting rewards, or keep it liquid and earn nothing. Most users end up somewhere in between - locking for shorter periods and getting suboptimal rewards, or forgetting to vote and missing out entirely.
iAERO eliminates this trade-off by pooling user deposits into a protocol-managed vault that maintains maximum voting power while giving users liquid tokens they can trade anytime.
How It Works: The 30-Second Version
You deposit veAERO NFTs or AERO into the vault
Vault locks it permanently in veAERO for maximum voting power
You receive iAERO tokens (95% of deposit after 5% fee)
You receive bonus LIQ tokens (governance/rewards token)
Stake your iAERO to earn 80% of all voting rewards
Vault votes automatically every week using optimal strategy
Trade iAERO anytime if you need liquidity
Your First Deposit: Step-by-Step
Prerequisites
AERO tokens or veAERO NFT in your wallet
ETH for gas fees (Base network)
Connected wallet (MetaMask, Rabby, etc.)
Step 1: Connect Your Wallet
Navigate to iaero.finance and connect your wallet. Make sure you're on Base network.
Step 2: Choose Deposit Type
Option A: Deposit AERO
Best for: Fresh AERO holders
Process: Simple one-click deposit
You get: iAERO + LIQ tokens
Option B: Deposit veNFT
Best for: Existing veAERO holders
Process: Transfer your veNFT to vault
You get: iAERO + LIQ based on locked amount
Step 3: Enter Amount
Minimum: 1 AERO
Maximum: 10,000,000 AERO per transaction
Fee: 5% (goes to protocol treasury)
Step 4: Approve & Deposit
Approve the vault to spend your AERO
Confirm the deposit transaction
Receive your iAERO and LIQ tokens
Step 5: Stake Your iAERO
Don't leave your iAERO idle! Stake it immediately to earn rewards:
Go to the "Stake" tab
Enter your iAERO amount
Confirm staking transaction
Start earning automatically
Receive stiAERO receipt token
Understanding the Tokens
iAERO - Your Liquid Staking Token
What it represents: Your share of the vault's veAERO
Exchange rate: 1 AERO = 0.95 iAERO (after 5% fee)
Utility: Stake for rewards, trade on DEXs, use as collateral (coming soon)
Supply: Uncapped, minted on deposits
LIQ - Bonus Governance Token
What it represents: Governance rights and protocol ownership
Emission rate: Starts at 1 LIQ per iAERO, halves every 5M
Utility: Stake for protocol revenue share, governance voting
Supply: Capped at 100M total
Rewards Explained
When you stake iAERO, you earn from multiple sources:
Weekly Aerodrome Rewards
Voting bribes from protocols
Trading fees from gauges
AERO emissions
Distribution Breakdown
Total Rewards ├── 80% → iAERO stakers (you!) ├── 10% → Protocol treasury └── 10% → Peg defense fund
Claiming Rewards
Rewards accumulate automatically
Claim anytime with no penalty
Multiple tokens (AERO, USDC, ETH, etc.)
Auto-compound by restaking
Common Questions
Q: Can I get my AERO back? A: No, deposits are one-way. But you can sell iAERO on the open market anytime.
Q: How often are rewards distributed? A: Weekly, after each voting epoch. Keepers harvest and distribute automatically.
Q: Is there a lock period for staking? A: No! Stake and unstake iAERO instantly with no cooldown.
Q: What happens to my voting power? A: It's pooled with everyone else's and voted optimally by the protocol.
Risk Considerations
Smart Contract Risk: Contracts are unaudited (audit pending)
No Redemption: Cannot convert iAERO back to AERO
Price Risk: iAERO may trade below intrinsic value
Centralization: Voting controlled by protocol multisig
Next Steps
✅ Completed first deposit? Great! Now:
Stake your iAERO for rewards
Add liquidity to iAERO/AERO pool
Learn about LIQ tokenomics
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