> 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.

## 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