As decentralized finance (DeFi) continues to evolve, Aerodrome Finance has emerged as a dominant force on the Base Network — Coinbase’s Layer-2 chain. At the heart of its success is Slipstream, a next-generation concentrated liquidity engine that combines precision trading with high-yield incentives. Slipstream isn’t just a technical upgrade — it’s a strategic leap forward in capital efficiency and fee optimization.
Slipstream is Aerodrome’s implementation of concentrated liquidity pools, inspired by Uniswap V3 but deeply integrated into Aerodrome’s governance and emissions system. Liquidity providers (LPs) can allocate capital within specific price ranges, allowing tighter spreads and deeper liquidity where it matters most.
Custom Price Bands: LPs choose the range in which their capital is active.
Higher Fee Capture: More trades within active ranges = more rewards.
Stakable NFT Positions: LP tokens are represented as NFTs and can be staked into gauges for emissions.
This model ensures that liquidity is not just abundant — it’s intelligently deployed.
Slipstream pools are designed to maximize fee generation while minimizing slippage for traders. By concentrating liquidity around active price ticks, Aerodrome achieves:
Deeper Order Books: Traders enjoy better execution and lower slippage.
Dynamic APRs: LPs earn from both swap fees and emissions, with top pools reaching APYs over 1,200%.
Gauge-Directed Emissions: veAERO holders vote to direct rewards, aligning incentives across the ecosystem.
This dual-reward structure makes Slipstream one of the most lucrative platforms for liquidity providers on Base.
Create a Position: LPs deposit tokens and define a price range.
Stake in Gauge: Positions can be staked to earn emissions.
Earn Fees + Rewards: As trades occur within the range, LPs earn swap fees and AERO emissions.
Rebalance as Needed: If the price moves outside the range, LPs can adjust their position to stay active.
This system rewards active management while offering passive income for well-placed liquidity.
Slipstream pools now account for over 90% of Aerodrome’s DEX volume on Base, surpassing even Uniswap V3 adoption on the chain. With over $2 billion in monthly trading volume and $600,000+ in single-day fee collections, Slipstream is driving liquidity depth and user engagement at scale.
Q: What makes Slipstream different from traditional AMMs? A: Slipstream uses concentrated liquidity, allowing LPs to focus capital within price ranges for higher efficiency and rewards.
Q: Do I need to actively manage my position? A: Yes. If the price moves outside your selected range, your position becomes inactive until rebalanced.
Q: What are gauge-directed emissions? A: veAERO holders vote to direct AERO token rewards to specific pools, incentivizing liquidity where it’s most needed.
Q: Can I earn passive income with Slipstream? A: Yes — well-placed liquidity within active price ranges can generate high yields from fees and emissions.
Q: Is Slipstream available on other chains? A: Currently, Slipstream is optimized for the Base Network, with future multichain expansion under consideration.
Ready to deploy smarter liquidity? Explore Slipstream at aerodrome.finance