# 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:

1. **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.
2. **Optimal Voting Execution**: Our automated system ensures 100% voting participation with mathematically optimized bribe capture, maximizing value for the Aerodrome ecosystem.
3. **Compounding Network Effects**: As iAERO grows, more AERO gets permanently locked, increasing scarcity and value for all veAERO holders - not just iAERO users.
4. **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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