AERO Distribution
Overview
When borrowers deposit Aerodrome LP tokens as collateral, those LPs are automatically staked to earn AERO rewards. The protocol takes a 35% tax on AERO as interest, with 65% going to the borrower.
Distribution Split
From LP Token Borrowers
| Recipient | Share | Description |
|---|---|---|
| Borrower | 65% | Keeps majority of AERO |
| Protocol Tax | 35% | Protocol interest |
Protocol's 35% Tax Split
| Recipient | % of Tax | % of Total AERO |
|---|---|---|
| POL Treasury | 80% | 28% |
| FsBaseD | 10% | 3.5% |
| BaseD Stakers | 10% | 3.5% |
Protocol Owned Liquidity (POL) Strategy
The protocol earns 28% of all AERO farmed:
- Locks AERO as veAERO
- Votes for sAMM_BaseD/BOLD & vAMM_BASED/ETH pools
- Collects trading fees and bribes
- Compounds fees into more POL
Revenue Flows
Standard Branches (wETH, cbBTC, wstETH, superOETHb)
BaseD interest split:
- 80% → sBaseD
- 10% → POL Treasury
- 10% → BaseD Stakers
LP Token Branches (vAMM/sAMM pairs)
35% AERO tax split:
- 80% → POL Treasury (28% of total)
- 10% → FsBaseD (3.5% of total)
- 10% → BaseD Stakers (3.5% of total)