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Uniswap Latest Updates: Aero Poses a Threat to Uniswap's DEX Supremacy Through Cross-Chain Integration

Uniswap Latest Updates: Aero Poses a Threat to Uniswap's DEX Supremacy Through Cross-Chain Integration

Bitget-RWA2025/11/12 21:34
By:Bitget-RWA

- Aerodrome and Velodrome merge to form Aero, a cross-chain DEX launching on Ethereum and Arc in Q2 2026, aiming to unify $536M TVL and challenge Uniswap's $4.9B dominance. - The platform integrates METADEX03 upgrades including MEV auctions and dual-engine models, while Uniswap's "UNIfication" plan allocates 0.05% fees to UNI buybacks potentially generating $38M monthly. - Aero's institutional tools and Slipstream V3 aim to capture sequencer fees, but face risks from Uniswap's fee-driven tokenomics and mac

Aerodrome and Velodrome, two prominent decentralized exchanges (DEXs) operating on Base and

, are joining forces to create Aero, a cross-chain liquidity platform scheduled to debut on Mainnet and Circle's Arc blockchain in the second quarter of 2026. Spearheaded by Dromos Labs, this merger seeks to bring together fragmented liquidity across Ethereum Layer 2s and expand into the broader EVM-compatible landscape. The upcoming platform will utilize , a suite of technical enhancements that includes built-in MEV auctions, dual capital efficiency engines, and MetaSwaps for effortless cross-chain transactions, as reported by .

The launch of Aero is a calculated move in response to growing rivalry among DEXs. By combining Aerodrome’s $480 million and Velodrome’s $56 million in total value locked (TVL), the new entity aims to compete with

, which currently leads with $4.9 billion in TVL. Alexander Cutler, CEO of Dromos, highlighted Aero’s goal to become the “first DEX to comprehensively serve the entire Ethereum ecosystem,” utilizing a unified AERO token (merging Aerodrome’s AERO and Velodrome’s VERO) to simplify governance and revenue sharing, according to . Features like “verified pools” and compliance tools designed for institutions are intended to attract enterprise clients, while Slipstream V3’s MEV capture could secure substantial sequencer-level fees, as noted by .

This development comes as Uniswap proposes a “UNIfication” governance revamp, aiming to activate protocol fees and use proceeds for

buybacks. Under this proposal, 0.05% of trading fees from v2 and select v3 pools would be allocated to ongoing burns, potentially resulting in $38 million in monthly buybacks based on past figures, according to . Uniswap also intends to retrospectively burn 100 million UNI tokens from its treasury, reducing the circulating supply by 16% and better tying token value to protocol activity, as reported by . While this could reinforce UNI’s deflationary appeal, analysts warn that Aero’s possible mainnet rollout might divert liquidity and LP rewards from Uniswap, according to .

Market movements reflect the high stakes. After President Trump announced a $2,000 tariff dividend, crypto markets rallied, with

climbing 2% and Ethereum up 3.7%, pushing the total market cap to $3.5 trillion, according to . This macro environment is fueling interest in DEXs like Aero and Uniswap, which provide alternatives to the inflationary trends of traditional finance. At the same time, Rumble’s ongoing merger with Tether-backed Northern Data—despite a criminal probe into the latter’s GPU tax practices—underscores the sector’s volatility, though its ambitions in cloud infrastructure echo Aero’s commitment to scalable onchain solutions, as noted by .

Aero’s anticipated Q2 2026 debut could reshape Ethereum’s liquidity ecosystem. By merging Aerodrome and Velodrome’s communities and technologies, the platform seeks to capture a greater share of decentralized trading and address cross-chain challenges. However, its ultimate impact will depend on how well it executes against Uniswap’s fee-driven token model and the broader economic context shaped by Trump-era policies. As Dromos CEO Cutler remarked, “Just as the world came online, it is now coming onchain”—a vision now facing the test of fierce competition and evolving regulations, according to

.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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