buying veAERO - please DM (if I don’t respond, reply to a tweet)
Joined October 2021
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TLDR:
AERO = gud infrastructure
This is going around as a funny copy pasta, but a lot of people don't understand why Predictive Allocation is such a game changer for on chain LPs and $AERO.
Let's say you're an on chain LP and you think that oil is about to go crazy over the weekend because of rumours that the US will start bombing Iran.
You hop on to Uniswap and see that OIL/USDC has only been paying 30% APR because very little trading had occurred the week prior. The LP fees are backwards looking. You could deploy some capital now, but then you risk only getting paid higher LP fees briefly before wicking out of range.
Then you go over to @aeroxyz and see that OIL/USDC is paying 100% APR in $AERO emissions. The reason is because sAERO allocators are betting that the OIL pairs will have crazy volatility/volume on the weekend right alongside you, and so they've directed their votes to those pools predictively to capture that fee share.
But markets are efficient, so what ends up happening? LPs from UNI pull their capital and move it over to Aero until the rates normalize.
Aero enables emissions to be directed as a forward looking bet rather than displayed as a backwards looking snapshot. This means Aero will attract more liquidity when organic market forces deem it's actually needed, which means tigher spreads, which means more volume routed through Aero, which means more fees for sAERO stakers.
This advantage only gets magnified by more RWAs coming on chain when there are earnings reports and other pre-defined catalysts for volume. sAERO allocators have an economic incentive to dynamically adjust emissions to attract the deepest liquidity before it's actually needed; this is a mechanic that other AMM designs simply can't replicate.
Crypto Jake retweeted
A bad stretch of market-wide price action has hidden the extremely bullish fundamental story that $AERO has been painting since it's update.
The bear case for $AERO though is that it's complicated and people don't understand it, nor know how to value it.
The bull case for $AERO though is that it's complicated and people don't understand it, nor know how to value it.
Fortunately, the Momentum Fund and degree to which sAERO allocators are printing fees with Predictive Allocation makes that dislocation very difficult to persist.
Crypto Jake retweeted
Brand new sAERO leaderboard is here!
Updated for @aeroxyz merged sAERO lockers.
Link in reply.
Crypto Jake retweeted
Last time the market didn't properly sell off after a huge event like this was the FTX collapse
When I saw the lack of follow through then I got giga bullish
And we subsequently went from 16k to 100k
Hard to be bearish here after having been given the same setup yet again
Crypto Jake retweeted
Listen, I know we're all panicking about the hack, but there are a ton of other important things happening in crypto right now too
$AERO just posted its first week on 7 chains:
1. DEX volume: #2 in the world
2. Tokenized stocks: #1 exchange
3. New chains: revenue tripled
4. Supply: first burn done
5. Price: down 23% (hack pushed the whole market down)
Four of five are going the right way. Naturally, the fifth is the one everyone cares about
Alex Cutler @wagmiAlexander, CEO of Dromos Labs, the team behind @aeroxyz, has been posting the numbers all week
Biggest update first: Aero is now the #2 DEX in the world by 24-hour volume. $826M on Thursday, second only to Uniswap ($2.2B) and just ahead of PancakeSwap ($812M)
By chain, it's #1 on Base, Optimism and Ink
Ethereum. Saturday night, Alex had Aero at 2.6% of Ethereum volume. By Wednesday morning he was posting it as the #3 venue on mainnet: $59M in 24 hours, a 6.1% share, behind only Uniswap and Fluid
Uniswap still does 70% of it. I hold $UNI too, but what AERO is doing is important too
Stocks. When Alex came on @MilkRoadDaily in August, the first four stock tokens had been live on Aerodrome for a week. His words: "in one week, we carved out about 25% of the total market"
Since the Aero launch, the team says it's the #1 exchange for tokenized equities, across every stock and every chain. This matters. A lot. It will matter more as more assets are tokenized.
New chains. In that same Saturday post, Alex said Aero had flipped 50% of the volume on Arc and taken 11.6% of Robinhood Chain and 3.1% of Arbitrum. "This was supposed to just be the migration week"
The revenue is small so far, but here's what I've seen. Robinhood Chain is at $92K lifetime, up from $29K last weekend. Ethereum mainnet is at $81K, up from $25K
Base is at $511.6M, so these are still small. They also more than tripled in about five days
Supply. On Wednesday the Momentum Fund ran the first buyback of the Aero era and burned 174K AERO. That's about $120K worth, and Alex's take was "Just the start." Clearly, since they just started.
48.5% of all AERO is staked, locked for 3.9 years on average, and 100% of exchange revenue goes to those stakers
Price. AERO is down ~23% on the week. If you hold it on @coinbase, AERO and VELO sends and receives pause Nov 2-4 for the migration
One week in, it's #2 on Robinhood Chain and Arbitrum. Which one do you think it takes over first?
I'm monitoring this situation. Closely.
Full disclosure: I own $AERO in my Milk Road PRO portfolio, where it's up 46.9%. $UNI (+44.9%) and $SKY (+38.9%) are in there with it
Try Milk Road PRO for $1 for 7 days, link in the replies
Crypto Jake retweeted
I think this is the biggest educational moment in crypto's history
Every investment team in the world is having a conversation about Hyperliquid in their morning huddle up today
Hyperliquid
HYPE paving the way for institutions to open their eyes to DeFi
AERO next?
I am excited to be an investor in trade(xyz) as they partner with ICE to bring 24/7 perpetual futures on Hyperliquid to the United States. As a market participant, I am looking forward to to using their innovative product to enhance my investment process.
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Crypto Jake retweeted
Aero's global share is still rising, up 30% since launch.
Incredibly, the annualized inflation rate is down 20%.
And its share on new chains continue to rise quickly. 🛫
Follow along here: dromos.kitchen/dashboards/ae…
ICYMI, in less than a week into launch @aeroxyz flipped 50% volume share on another chain in @arc.
It also took 11.6% of @RobinhoodCrypto, 3.1% of @arbitrum, and 2.6% of @ethereum... in mere days.
This was supposed to just be the migration week.
Deliriously excited.
Crypto Jake retweeted
Aero has increased its share of EVM by ~15%.
While its effective inflation rate dropped by ~40%.
And we’re only three days into the launch. 🛫
Aero's $AERO token much less inflationary than expected!
Following the merge between @aeroxyz and Velodrome, the $AERO token's annualised inflation rate has been cut in half to around 6.6%.
Before the merge, $AERO's annual inflation stood at a massive 12%, and projections only estimated a reduction to around 8%.
Is this enough to make you bullish...?
Crypto Jake retweeted
Closing in on 72 hours from @aeroxyz launch.
Aero’s share of global DEX volumes has already increased ~15% — its share of @RobinhoodCrypto has doubled almost every day since launch.
Massively exceeding our expectations for the migration week and limited launch. 🛫
All your volume are belong to us
In just the first 48h, Aero has taken the number one or number two spot on most of the chains where it’s live.
Just the start. 🛫
dromos.kitchen/dashboards/ae…
