Dromos Labs Bets New Decentralized Exchange Aero Will Unlock Onchain Value

Speaking to Sandmark at EthCC 2026 in Cannes, France, Alex Cutler, chief 
executive of Dromos Labs, said decentralized exchanges now serve as core 
infrastructure for the onchain economy. These platforms stand poised to capture more economic value than the underlying blockchains.

Merger creates unified Aero DEX

Dromos Labs has built two DEXs - Aerodrome on Coinbase's Base network and Velodrome on Optimism. The firm plans to merge both into a single protocol called Aero, set to launch in the second quarter of 2026 with plans to expand to Ethereum mainnet and Circle's Arc network.

Aerodrome currently ranks as the top DEX on Base by trading volume and fees, with recent total value locked around $350mn. The unified Aero will combine 
liquidity, governance and incentives across networks while introducing efficiency upgrades such as Predictive Allocation. This feature, announced at EthCC, aims to boost token reward distribution efficiency by up to 80% by incorporating 
prediction-market-style mechanics.

The platforms operate within Ethereum's Layer 2 ecosystem and the OP Superchain. Lower costs and faster execution have shifted significant trading 
activity away from centralized exchanges towards these onchain venues.

Exchange layer drives value capture

Cutler said that the onchain economy is mirroring traditional finance, where legal frameworks support an exchange layer that enables commerce. Blockchains such as Ethereum provide the secure base settlement layer, while exchanges handle the 
actual transfer and discovery of value.

"Our goal is to be the exchange layer of the entire Ethereum ecosystem," he said. "That is where we expect to see expansion across stablecoins, real-world assets and global financial activity, and we want to be the dominant exchange at that layer."

Layer 2 networks emerged to solve Ethereum's congestion challenges. They execute transactions on a separate layer while preserving Ethereum for final settlement. Ethereum's latest Dencun upgrade and the introduction of data blobs have cut costs dramatically, improved margins and driven higher user activity, plus fee 
generation on L2s.

A handful of leading networks, including Base and Arbitrum, now control the 
majority of transaction volume, revenue and liquidity. Smaller chains struggle to maintain traction in this competitive environment.

Cutler pointed out a valuation mismatch: blockchain tokens often carry hundreds of billions of dollars in market capitalization, yet decentralized exchanges globally generate roughly $5bn in annual fees compared with $2bn to $3bn across major blockchain networks. This suggests exchanges already produce more direct 
economic output.

Regulation offers path for builders

Cutler identified the CLARITY Act as a significant step towards clearer rules for 
decentralized finance in the US. Legal protections for developers, similar to early internet safeguards that limited platform liability for user content, could sustain 
innovation and encourage talent to return.

Recent legislative progress appears to move in this direction, even as the bill 
navigates Senate processes and competing priorities on housing and banking 
provisions. The White House has also resisted bank-backed calls for tighter 
restrictions on stablecoin yields.

For builders like Dromos Labs, regulatory clarity addresses both market structure and liability risks. The industry seeks balanced rules that reduce developer 
exposure, prevent abuse, and avoid stifling experimentation or driving activity abroad.

Clearer frameworks could also curb speculative excess. Cutler noted that a large share of crypto tokens lack meaningful utility or value accrual mechanisms, fuelling institutional scepticism.

"It’s an insane amount of market capitalization," he said, referring to such tokens. "If we can move to a place where these assets are judged on usefulness and value 
redistribution rather than speculation, it will be much better for the industry."

Dromos Labs aims to capitalize on this shift through Aero's unified platform and 
efficiency tools. The merger and new features position the firm to compete directly with incumbents such as Uniswap and Curve while capturing a larger share of 
onchain value as activity grows in stablecoins, tokenized assets and broader 
financial applications.