# What is iAERO?

iAERO is a liquid staking derivative protocol built on top of Aerodrome Finance's veAERO system.

## The Problem

Traditional veAERO locking requires users to choose between:

* **Liquidity** - Keeping AERO liquid but earning no voting rewards
* **Rewards** - Locking AERO for up to 4 years but losing access to capital

## The Solution

iAERO solves this dilemma by:

1. **Pooling deposits** into a protocol-owned vault
2. **Permanently locking** veAERO positions for maximum voting power
3. **Issuing iAERO tokens** as liquid receipts for deposits
4. **Distributing rewards** to iAERO stakers

## How It Works

### Key Components

* **PermalockVault**: Manages veAERO NFTs and deposits
* **iAERO Token**: 1:1 receipt token for AERO deposits (minus fees)
* **LIQ Token**: Bonus emission token with halving schedule
* **StakingDistributor**: Handles reward distribution to stakers
* **RewardsHarvester**: Claims and processes Aerodrome rewards


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