Mellow is discontinuing its Autopilot liquidity management service on Aerodrome and Velodrome ahead of Aero token launch, instructing liquidity providers to withdraw.
DeFi & Yields ·
Mellow is discontinuing its Autopilot liquidity management service across Aerodrome and Velodrome in advance of the Aero token launch, directing liquidity providers to withdraw their positions. Autopilot was a managed liquidity tool that automated LP participation on both protocols. The timing coincides with structural changes underway at Aerodrome, the dominant decentralized exchange on Base, which operates through a vote-escrowed tokenomics model where AERO holders lock tokens to vote on weekly liquidity incentive distribution and earn a share of trading fees.
Aerodrome and Velodrome, both built on the Solidly codebase, are set to merge with VELO holders receiving 0.55 AERO per token. The Aero launch represents a consolidation of liquidity infrastructure across the two protocols. Mellow's decision to wind down Autopilot suggests the service's operational model may not align with the post-launch environment or the merged protocol's incentive structure.
What remains unclear is whether Mellow plans to rebuild Autopilot for the merged protocol or whether liquidity management on Aerodrome and Velodrome will shift entirely to direct LP participation and voter-directed emissions. The specific timeline for Autopilot's shutdown and any transition guidance beyond the withdrawal notice has not been detailed.