Aerodrome LP - Sherwood

Not yet available on Robinhood testnet (chain 46630), Sherwood’s current deployment target. This strategy will come online as Sherwood expands to more chains.

The AerodromeLPStrategy provides liquidity to an Aerodrome pool and optionally stakes the LP tokens in a gauge to earn AERO rewards. On settlement, it unstakes, claims rewards, removes liquidity, and pushes all tokens back to the vault.

Architecture

Stable vs Volatile Pools

Stable Pool

For correlated assets (e.g., USDC/USDbC). Uses the stable = true flag. Lower fees, tighter curve.

Volatile Pool

For uncorrelated assets (e.g., USDC/WETH). Uses stable = false. Standard AMM curve.

Lifecycle

Pending → execute() → Executed → settle() → Settled

Phase	What happens	Who calls
Execute	Pull tokenA + tokenB → addLiquidity → stake LP in gauge	Governor (proposal execution)
Executed	LP earns trading fees; gauge earns AERO rewards	—
Settle	Unstake LP → claim AERO → removeLiquidity → push all to vault	Governor (proposal settlement)

Any dust (unused tokens from addLiquidity) is returned to the vault immediately during execution.

Batch Calls

Execute

[tokenA.approve(strategy, amountA), tokenB.approve(strategy, amountB), strategy.execute()]

Settle

[strategy.settle()]

Settlement pushes three types of tokens to the vault: tokenA, tokenB (from removed liquidity), and AERO (gauge rewards).

Gauge Staking

Gauge staking is optional. Pass --gauge <address> to enable it.

If a gauge is set, the strategy stakes all LP tokens after adding liquidity
On settlement, LP is withdrawn from the gauge and AERO rewards are claimed
The gauge’s stakingToken must match the lpToken address (validated at initialization)
If no gauge is set, LP tokens sit in the strategy clone (earning trading fees only)

InitParams

struct InitParams {
    address tokenA;         // First token in the pair
    address tokenB;         // Second token in the pair
    bool stable;            // true = stable pool, false = volatile
    address factory;        // Aerodrome pool factory
    address router;         // Aerodrome Router
    address gauge;          // Gauge address (address(0) to skip staking)
    address lpToken;        // Pool LP token address
    uint256 amountADesired; // tokenA to provide
    uint256 amountBDesired; // tokenB to provide
    uint256 amountAMin;     // Min tokenA on addLiquidity (slippage)
    uint256 amountBMin;     // Min tokenB on addLiquidity (slippage)
    uint256 minAmountAOut;  // Min tokenA on removeLiquidity (slippage)
    uint256 minAmountBOut;  // Min tokenB on removeLiquidity (slippage)
}

CLI Usage

sherwood strategy propose aerodrome-lp \
  --vault 0x... \
  --token-a 0x833589fCD6eDb6E08f4c7C32D4f71b54bdA02913 \
  --token-b 0x4200000000000000000000000000000000000006 \
  --amount-a 500 --amount-b 0.2 \
  --gauge 0x... --lp-token 0x... \
  --min-a-out 490 --min-b-out 0.19 \
  --name "USDC/WETH Aerodrome LP" \
  --duration 14d

Flag	Description	Default
`--token-a <address>`	Token A address	required
`--token-b <address>`	Token B address	required
`--amount-a <n>`	Token A amount	required
`--amount-b <n>`	Token B amount	required
`--stable`	Stable pool (correlated assets)	false
`--gauge <address>`	Gauge for AERO rewards	none
`--lp-token <address>`	LP token address	required
`--min-a-out <n>`	Min token A on settle (slippage)	at least one of the pair required
`--min-b-out <n>`	Min token B on settle (slippage)	at least one of the pair required

Slippage minimums are mandatory. Initialization reverts with InvalidAmount if both settle-side mins (minAmountAOut / minAmountBOut) are 0, and likewise if both add-side mins (amountAMin / amountBMin) are 0. At least one of each pair must be non-zero so addLiquidity / removeLiquidity are sandwich-resistant.

Tunable Parameters

While in Executed state, the proposer can update settlement slippage:

Parameter	Description
`minAmountAOut`	Minimum tokenA on removeLiquidity
`minAmountBOut`	Minimum tokenB on removeLiquidity

strategy.updateParams(abi.encode(newMinAmountAOut, newMinAmountBOut));
// Pass 0 to keep current value

Live NAV

The strategy never self-reports a value. It reports one position of kind AERODROME_LP (venue + kind + locator) via positions(), and an AerodromeLPAdapter — pricing the LP via the pool’s native quote() TWAP with a recency check and a spot/TWAP deviation guard — is built and tested for the governance-owned PriceRouter. However, Lane A is not yet enabled for AERODROME_LP (laneAEnabled[AERODROME_LP] = false, pending audit). Until governance enables it, this strategy is Lane B only: while an Aerodrome proposal is active, LP entry / exit goes through the async queue (VaultWithdrawalQueue) and settles at the frozen per-proposal price. Once the kind is enabled, instant Lane A pricing applies. See Deposits & Withdrawals for the full two-lane mechanics.

Addresses (Base reference)

Contract	Address
AerodromeLPStrategy template	`0x6fba9a6D3F40AA1848Ad196564B27a430D29FdB0`
Aerodrome Router	`0xcF77a3Ba9A5CA399B7c97c74d54e5b1Beb874E43`
Aerodrome Default Factory	`0x420DD381b31aEf6683db6B902084cB0FFECe40Da`
AERO Token	`0x940181a94A35A4569E4529A3CDfB74e38FD98631`

If the vault only holds one asset (e.g., USDC), the agent should add a swap call before the strategy in the execute batch to acquire the second token.

​Architecture

​Stable vs Volatile Pools

Stable Pool

Volatile Pool

​Lifecycle

​Batch Calls

​Execute

​Settle

​Gauge Staking

​InitParams

​CLI Usage

​Tunable Parameters

​Live NAV

​Addresses (Base reference)

Architecture

Stable vs Volatile Pools

Lifecycle

Batch Calls

Execute

Settle

Gauge Staking

InitParams

CLI Usage

Tunable Parameters

Live NAV

Addresses (Base reference)