If you hold VELO, it becomes a different token in November. Velodrome and Aerodrome, the two largest decentralised exchanges on Optimism and on Base, are merging into a single protocol called Aero. At Coinbase the swap runs from November 2 to November 4, 2026; for each VELO you receive around 0.044 new AERO, and the exchange takes no fee for it. Anyone holding VELO in their own wallet, however, is not covered by this swap at all and has to act themselves.
November 2 is not actually the date on which things get tight for you. They get tight earlier: at Coinbase, VELO can already only be traded with a limit order today, and the exchange no longer accepts a plain market order. Anyone assuming there is time until November to sell the position in the normal way is therefore already wrong.
What exactly happens in the Velodrome and Aerodrome merger
Both exchanges belong to the category of decentralised exchanges, DEX for short. A DEX is a venue that works without a custodian: you swap directly out of your own wallet, and pricing is handled by a program on the blockchain instead of an order book inside a company. Velodrome is that venue on Optimism, Aerodrome the same blueprint on Base, the secondary network of Ethereum operated by Coinbase. Behind both stands the same development firm, Dromos Labs.
Both work on the so-called ve(3,3) model. That means: whoever locks their tokens for a fixed period receives voting rights in return and thereby steers which trading pairs the rewards flow into. The value of the token arises from this mechanism, and it is precisely this that is now being merged. Instead of two separate voting systems on two chains, there is to be one in future serving several networks. Among the first chains of the new protocol are OP Mainnet and Ink alongside Base.
To place the setting, it is worth a look at the ecosystem of the Coinbase chain Base, in which Aerodrome has played the largest role so far. The merger changes exactly that map: what were two regional top dogs becomes one provider across several networks.
The swap factor of 0.044 AERO per VELO and how it comes about
For holders of AERO nothing changes arithmetically; one old AERO becomes one new AERO. For VELO the factor of roughly 0.044 applies. That number derives from the announced split of the new supply: 94.5 percent of the new AERO quantity goes to the existing AERO holders, 5.5 percent to the VELO side. The basis for that split is the economic performance of both protocols in the 52 weeks before the announcement, that is essentially the trading fees and revenues each of the two exchanges earned in that period.
That split can be checked against the market, and this is the point at which the matter becomes verifiable for you. In early October, Aerodrome carries a market capitalisation of around $835.5 million, Velodrome around $48.6 million. Together that is about $884 million, and Velodrome’s share of it is 5.50 percent. The announced split of 94.5 to 5.5 and what the market actually pays today therefore agree to a hundredth. The market has long since priced the merger in.
Worked through: 1,000 VELO yield 44 new AERO
Concretely, with the prices of October 6: AERO stands at $0.8355 or 0.7455 euros, VELO at $0.036265 or 0.032355 euros. A holding of 1,000 VELO is thus worth $36.26 or 32.36 euros in the market. After the swap that becomes 44 AERO, and at the same prices those are worth $36.76 or 32.80 euros.
The difference comes to 50 cents, that is 1.38 percent in favour of the swap. The market ratio of VELO to AERO stands at 0.0434, the offered factor at 0.044. For you that means one thing above all: there is no discount here that you would avoid by selling quickly beforehand, and no premium you could collect by buying in. Anyone trading hectically because of the swap factor pays trading fees for an advantage that does not exist in that order of magnitude.
One caveat belongs with it: this calculation is a still image. Prices move, and the factor of 0.044 is fixed, while the market prices of both tokens will fluctuate until the window in November. Whether the difference will then still be 1.38 percent, larger, or reversed cannot be said today and is not worth a forecast either.
At Coinbase the wind-down is already running: VELO by limit order only
Trading in VELO at Coinbase has already been switched to so-called limit-only operation. A limit order is an order with a price condition: you set the price at which you want to buy at most or sell at least, and the order waits in the order book until someone takes it at that price. A market order, by contrast, is executed immediately at the next best available price, and that option no longer exists for VELO there.
That this is not a normal state for small trading pairs is shown by the counter-check on the sister pair: AERO can still be traded at the same exchange without that restriction. Limit-only operation is the first stage of an announced two-stage wind-down path, on whose second stage VELO trading is discontinued entirely.
In practice that means three things. First, you no longer have an execution guarantee: your order sits in the book and may never be filled, or only in part. Second, the spread between bid and offer typically widens in such phases, because fewer participants are quoting. Third, exiting thereby becomes a decision with lead time rather than a click. Anyone reconsidering their choice of venue anyway will find in the crypto exchange comparison the points that matter on trading pairs, fees and authorisation in Germany.
Two dates structure the process. On October 21, 2026 the unified protocol is to launch, initially on OP Mainnet and Ink among others. From November 2 to November 4, 2026 the swap window then runs at Coinbase, in which the two legacy tokens become the new AERO.
Within that window the exchange pauses deposits and withdrawals of the legacy tokens. Anyone wanting to move holdings to or from Coinbase during those three days therefore cannot. Anyone wanting to shift their holding before the window is better off doing it well in advance and not on the evening of November 1, because a withdrawal on a network can take time depending on load.
Coinbase charges no fee for taking part in the swap, according to its own announcement. That concerns the conversion itself, not the trading fees that arise on a purchase or sale as they otherwise would.
Those whose holding sits at Coinbase and those who self-custody: two different routes
Here runs the dividing line at which, in experience, money gets lost. If your VELO sits in the Coinbase account, the swap happens without any action from you. You have to click nothing, confirm nothing and apply for nothing; after the window, AERO is in the account.
If instead you hold VELO in your own wallet on Optimism, you are not covered by Coinbase’s handling at all. For that case there is the protocol’s own migration route, and you have to take it yourself. Anyone who misses it holds, after the swap, a token that is no longer traded at its home venue.
A precautionary rule applies here that matters more at any token migration than the migration itself: migration pages are a classic target for fraud attempts. Around every announced swap, replica pages appear demanding a wallet connection and an approval, and with it they clear out the holding. You obtain the address of the genuine migration route exclusively via the official project page, never via a link from a direct message, a comment or a search ad. How to custody holdings in general so that a single bad approval does not cost everything is set out in the hardware wallet comparison.
veVELO locks: tied positions are the least clear part
In the ve(3,3) model there are, alongside the freely tradable tokens, the locked positions, called veVELO at Velodrome. Whoever locks gives up availability for a set period and receives voting rights and a share of the protocol’s revenues in return. These positions sit, by their nature, in the protocol itself and not on an exchange.
It is precisely on this that the least solid information is publicly available. The announced split of 94.5 to 5.5 percent expressly includes the locked positions on both sides, so there is no indication that they come away empty-handed. How a running lock period is treated at the transition, whether voting rights continue seamlessly, and what happens to positions whose term reaches beyond the swap cannot currently be answered conclusively from the outside. Anyone holding a locked position therefore follows the project’s announcements more closely than someone who only has free tokens sitting on an exchange.
Tax on a token swap: section 23 of the Income Tax Act and the open holding-period question
In Germany, gains from the sale of crypto assets held privately fall under section 23 of the Income Tax Act, the private disposal. The basic rule is familiar: hold for more than a year and you stay tax-free; sell within the one-year period and you pay tax on the gain at your personal rate, provided the exemption threshold is exceeded. The Federal Ministry of Finance most recently set out the treatment of crypto assets in its circular of March 6, 2025.
The point of dispute in a process like this one is: is the swap of one token for another a disposal that starts a new holding period? A swap from one crypto asset into another is in principle treated like a sale for tax purposes. Whether that also applies to a conversion in which the same project replaces its token and the holder economically keeps the same thing is a question of the individual case that nobody here can answer for you across the board. This is expressly not tax advice, and with meaningful amounts the question belongs with a tax adviser.
What you can do regardless is secure the evidence. Record which VELO holding you had at which point in time, at what factor it was converted and when. Anyone recording their purchases and swaps as they happen anyway has an easier time at year end; the comparison of tax tools and portfolio trackers shows which tools map such conversions cleanly.
An older ratio of 0.55 AERO per VELO is still doing the rounds
Anyone researching the topic comes across reports from the announcement period stating an entirely different ratio: 0.55 AERO per VELO. That ratio was a proposal from an early phase and was expressly marked as non-final at the time. It is not the factor at which the swap now takes place.
What governs is the number the exchange states for the November window, and that stands at around 0.044. The best protection against an outdated search hit is the cross-check from the second section: a factor of 0.55 would assign the VELO side around 40 percent of the new supply, while its market capitalisation today sits at a good 5.5 percent of the combined total. A number that is off by a factor of seven from what the market pays is in all likelihood out of date.
What this swap does not remove in terms of risk
A swap rearranges the tokens, but it does not turn a risky asset into a safe one. Three points remain unchanged.
First, protocol risk. Decentralised exchanges run on program code, and errors in that code have repeatedly proved expensive in recent years. A merger means new, altered code, and new code is least tested in its first weeks.
Second, liquidity risk. VELO currently turns over around $2.0 million a day, on a market capitalisation of around $48.6 million. In such a market even a medium-sized order moves the price, and in the limit-only phase that applies all the more. Anyone wanting to sort out the terms around decentralised trading, fee models and settlement in general will find the basics in the explainer on what a perp DEX is.
Third, price risk. On the direction of AERO after the merger this text deliberately says nothing. The combination widens the addressable market of both protocols; that is a fact about the structure, not a statement about the price. A total loss is possible at any time with crypto assets of this size.
The announcement of the combination comes from the development firm behind both exchanges and is documented on its own project page; the details on the window at Coinbase, on the factors and on the absence of fees were compiled among others by Cryptobriefing.
The VELO swap: What to take away
The swap itself is unspectacular and for exchange holdings even convenient. The work lies beforehand, and it consists of three steps.
- Settle where your holding sits. In an exchange account the swap happens automatically; in your own wallet on Optimism nothing happens at all unless you take the project’s migration route yourself. If you are thinking about the venue anyway, the crypto exchange comparison helps with the question of where trading pairs, fees and authorisation in Germany fit together.
- Secure the records before the holding is converted. Noting the holding, the date and the factor costs five minutes and spares you a reconstruction in case of doubt. Which tools capture such conversions cleanly is shown by the comparison of tax tools and portfolio trackers.
- Check your custody before you grant an approval anywhere. Around every announced swap, replica migration pages appear. How to separate holdings so that a single bad approval does not cost everything is set out in the hardware wallet comparison.
(As of October 6, 2026. This article is not investment advice. Prices and fee structures change; check the terms with the provider before you buy.)