> For the complete documentation index, see [llms.txt](https://docs.iaero.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.iaero.finance/getting-started/what-is-iaero.md).

# What is iAERO?

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

> **Aero migration (22 Oct 2026).** Aero replaced Aerodrome on Base. iAERO's veAERO was converted 1:1 into the permanent Aero stake #1584, and PermalockVault V5 deposits are paused. See [Aero Migration (22 Oct 2026)](/getting-started/aero-migration.md).

## 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 (V5, legacy)**: Managed veAERO NFTs and deposits until the Aero migration; deposits are paused
* **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