The two largest decentralized exchanges on Ethereum’s layer-2 networks are preparing to merge into one. Aerodrome Finance, the protocol currently dominating liquidity on Coinbase-backed Base, and Velodrome Finance, the dominant force in the Optimism ecosystem, plan to execute a full merger. The combination of these two entities will create a single new name, Aero. This combined entity is projected to operate as a unified trading and liquidity layer serving all transaction routes across the Ethereum ecosystem.
This consolidation is more than just a brand unification. The merger into Aero will integrate all technical infrastructure and liquidity depth from the crypto market’s two largest ve(3,3)-based protocols. Given their standing as the top decentralized exchanges on their respective chains, this merger automatically creates the largest multi-chain DeFi player ever seen in the Ethereum layer-2 landscape.
Ready to Compete on the Main Layer
Not stopping at L2 consolidation, the plan also includes an expansion roadmap to take things to the next level. Aerodrome is scheduled to expand its operations directly to the Ethereum mainnet by the end of the third quarter this year. This cross-chain maneuver aims to bring EURC stablecoin trading volume back to its native chain. Currently, the Ethereum mainnet still locks more than half of the total circulating EURC token supply.
Aerodrome’s expansion into mainnet guarantees a direct clash with incumbents. The combined entity will go head-to-head with Uniswap v4, the decentralized exchange heavyweight that recently sharpened its competitive edge by rolling out permissioned pool features. This fierce rivalry could redefine which application controls the largest transaction volume.
What We Don’t Know Yet
The mid-year shift in DeFi trends is not limited to the Ethereum ecosystem. On another network, Avalanche is also preparing to wrap up one of its funding initiatives. The Retro9000 C-Chain Round program initiated by the Avalanche Foundation will officially conclude at the end of July 2026 as part of a routine operational wind-down phase.
However, when it comes to the Aero merger, the implementation timeline still relies on third-party indicators. Based on preliminary data from the CoinMarketCap calendar, the merger between Aerodrome and Velodrome is slated for late July 2026. As of this writing, there has been no official confirmation from the development team regarding the exact execution date for user asset migration.
For token holders and liquidity providers, this merger signals the beginning of a shift in capital flow dynamics. Uniting two massive community groups onto a single platform is a complex technical undertaking; however, keeping those capital flows from leaking to Uniswap remains the true business challenge.
Reported according to the CoinMarketCap calendar.
Also read: What Is DeFi (Decentralized Finance)?
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
