Velodrome Weekly Highlights: kBTC Launch, ALM V2 Expansion & Superchain Dominance

Two major decentralized exchanges, Velodrome and Aerodrome, are merging to create **Aero**, a unified liquidity layer designed to serve the entire Ethereum ecosystem. **Key Points:** - The merger combines the strengths of both platforms into a single DEX - Aero aims to provide a comprehensive liquidity solution across Ethereum - The new platform will feature an updated economic engine - Expansion plans include deployment to Circle's Arc blockchain in 2026 This consolidation represents a significant shift in the DeFi landscape, bringing together two established protocols to create a more robust trading infrastructure. The unified approach seeks to address liquidity fragmentation across different chains and protocols. The merger follows a trend of protocol consolidation in the decentralized exchange space, where combining resources and user bases can lead to deeper liquidity and improved trading experiences.

Velodrome has enabled cross-chain trading of cbAssets across all its deployments on OP Stack chains through Metaswaps beta. **Key Features:** - Trade cbAssets (cbBTC, cbETH, cbMEGA) with single transactions - Seamless swaps across the Superchain - Available on all Velodrome-deployed chains This integration marks the first time Base-native cbAssets can be traded across multiple chains through Velodrome's infrastructure. The feature leverages Metaswaps beta technology to enable cross-chain liquidity without requiring multiple transactions or bridge interactions. Users can now access cbAsset liquidity across the OP Stack ecosystem through Velodrome's unified interface.

**Ethereum continues its scaling journey** while simultaneously expanding its application ecosystem. - The network is making progress on both infrastructure and user-facing applications - **Aero is scheduled to launch in Q2 2026** - This represents continued development in Ethereum's multi-layered approach The dual focus on scaling and app development shows Ethereum's comprehensive growth strategy beyond just transaction throughput improvements.

**Velodrome Slipstream** is offering substantial liquidity provider rewards on Ink chain with three main pools: - **$USDT0 - $WETH**: ~490% APY - **$kBTC - $USDG**: ~435% APY - **$WETH - $kBTC**: ~212% APY Users can deposit directly on [@inkonchain](https://inkonchain.com) to start earning these yields immediately. These rates represent significant opportunities for liquidity providers looking to maximize returns on their crypto assets through automated market making. *Ready to explore high-yield DeFi opportunities? Check Velodrome's liquidity page for all available pools.*

**Velodrome & Aerodrome voters earned $200 million in rewards this year** - a significant milestone for decentralized exchange participants. **MetaDEX03 will upgrade Aero's economic engine** in Q2 2026, promising enhanced functionality for the trading platform. The announcement positions these developments as proof that **crypto can extend beyond gaming and speculation** into substantial economic utility. For detailed information: [Aero FAQ](https://paragraph.com/@aerodrome-foundation/aero-faq)