veAERO Community Alignment
The 98% Revenue Commitment to veAERO Holders
iAERO demonstrates unprecedented alignment with the Aerodrome ecosystem by directing 98% of all veAERO revenues back to the community:
80% flows directly to iAERO stakers
10% builds protocol-owned reserves (defending the peg and strengthening the protocol)
8% rewards LIQ stakers (governance participants)
Only 2% retained for operations
This means veAERO depositors who stake both iAERO and LIQ immediately capture 88% of their original voting income while gaining:
Full liquidity of their position
Upside exposure to protocol growth through LIQ
Future collateralization opportunities via stiAERO
Automated optimal voting across all epochs
The Staker's Advantage: Benefiting from Short-Term Sellers
The protocol's structure creates a powerful flywheel that rewards long-term alignment:
Mathematical Reality:
If 25% of iAERO holders sell rather than stake, remaining iAERO stakers receive >100% of their original veAERO yield
If 67% of LIQ remains unstaked, LIQ stakers receive an additional 24% effective yield boost
Combined scenario: Committed stakers could earn 125%+ of original veAERO rewards
This mechanism ensures that patient, aligned participants benefit directly from short-term traders. Every seller increases yields for stakers, creating natural selection for long-term Aerodrome supporters.
Permanent Protocol Alignment
Critical commitments to Aerodrome:
Irreversible Lock: All veAERO locked in iAERO vaults will NEVER be unlocked or sold. This permanently removes sell pressure and strengthens the entire veAERO ecosystem.
Optimal Voting Execution: Our automated system ensures 100% voting participation with mathematically optimized bribe capture, maximizing value for the Aerodrome ecosystem.
Compounding Network Effects: As iAERO grows, more AERO gets permanently locked, increasing scarcity and value for all veAERO holders - not just iAERO users.
Ecosystem Integration: stiAERO will enable new DeFi primitives on Aerodrome, from lending markets to leveraged strategies, driving more activity and fees to the protocol.
Why This Matters for Aerodrome
iAERO isn't extracting value from Aerodrome - it's amplifying it:
Stronger Locks: Converting temporary locks to permanent ones
Better Participation: 100% voting vs typical 60-70% manual participation
Deeper Liquidity: iAERO pairs create new trading opportunities
Innovation Catalyst: Liquid staking unlocks new DeFi use cases on Base
Aligned Incentives: Protocol success directly correlates with AERO value
The Bottom Line
iAERO makes veAERO better for everyone:
For users: Maximum rewards without sacrificing liquidity
For Aerodrome: More permanent locks, consistent voting, ecosystem growth
For builders: New composable primitives to build upon
We're not competing with veAERO - we're evolving it. By solving the liquidity/reward tradeoff, we make locking more attractive, driving more value to Aerodrome.
Join us in building the future of liquid staking on Aerodrome.
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