Aerodrome Basic vs Slipstream: how does each model work?

On Aerodrome, the leading DEX on the Base network, there are two pool models. Basic is the traditional model: your liquidity covers every price and you don't need to choose a range. Slipstream is the concentrated liquidity model: you choose the range, your capital earns more inside it, but it can go out of range.

What is an Aerodrome Basic pool

With Basic, you deposit both tokens and your liquidity stays active at any price. There are two versions:

• Volatile: uses the classic x · y = k formula. It's meant for pairs that move against each other, like ETH/USDC.
• Stable: uses a curve designed for assets worth almost the same, like USDC/USDT. It concentrates liquidity near parity and allows swaps with little price impact.

A Basic position is represented by LP tokens, not an NFT. It never goes "out of range" — but because it spreads capital across every price, each dollar earns fewer fees.

What is Aerodrome Slipstream

With Slipstream, you choose a lower and an upper price limit. While the price stays inside that range, all of your capital works there, generating much more revenue per dollar. If the price leaves the range, the position becomes 100% one of the tokens and stops earning until the price comes back or you reposition. Each position is an NFT.

Example: the same capital in both models

Imagine $10,000 in an ETH/USDC pair, with ETH at $2,000:

• Basic volatile: the capital covers everything from zero to infinity. Only a small part of it sits near the current price, where trading happens.
• Slipstream from $1,800 to $2,200 (±10%): all the capital sits in that range. In concentrated liquidity, a ±10% range earns about 20 times more per dollar than the same liquidity spread across every price — as long as the price stays inside it.

The cost of that efficiency is the need to monitor: a rise of more than 10% in ETH takes the position out of range, and it stops earning.

AERO rewards: they apply to both models

In both Basic and Slipstream, the position can be staked in the pool's gauge. When staked, the LP receives AERO emissions on top of trading fees — emissions add to the fees, they don't replace them.

In a staked Slipstream position, only the liquidity inside the range receives emissions. Out of range, the position stops receiving AERO as well.

Basic or Slipstream: which to choose

• Basic: for those who want a "set and forget" position, with no risk of going out of range, accepting lower yield per dollar.
• Basic stable: for stablecoin pairs, with very low price risk.
• Slipstream: for those willing to monitor the position and reposition when needed, in exchange for more efficiency.

How to compare Basic and Slipstream positions

Comparing fees alone is misleading: a Slipstream position can accumulate more fees and still end up worse if it spent a long time out of range or suffered more Impermanent Loss. Compare capital deposited, current value, total yield (fees + AERO) and the result versus simply holding the tokens.

The SafeVault Performance Tracker tracks Aerodrome Basic and Slipstream positions with these metrics, counting AERO as yield. And the app alerts you when a Slipstream position goes out of range.

Frequently asked questions

Do Basic pools suffer Impermanent Loss?
Yes, the volatile version does, like any x · y = k pool. The stable version suffers little as long as the assets hold parity.

Can I convert a Basic position into Slipstream?
Not directly. You need to withdraw the liquidity and open a new position on Slipstream.

Does Slipstream always earn more?
Per dollar, inside the range, yes. In the final result, it depends on how long the position stays in range and the cost of repositioning.

Conclusion

Basic and Slipstream serve different profiles: Basic trades efficiency for simplicity; Slipstream trades simplicity for efficiency. Both can earn AERO when staked.

Identifying the model of each position is essential to interpret its results — and to decide where your next dollar is best placed.