The AerodromeLPStrategy provides liquidity to an Aerodrome pool on Base 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 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On settlement, LP is withdrawn from the gauge and AERO rewards are claimed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" \ --performance-fee 1000 --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 --stableStable 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 0 --min-b-out <n>Min token B on settle 0
Tunable Parameters While in Executed state, the proposer can update settlement slippage:
Parameter Description minAmountAOutMinimum tokenA on removeLiquidity minAmountBOutMinimum tokenB on removeLiquidity
strategy. updateParams ( abi . encode (newMinAmountAOut, newMinAmountBOut)); // Pass 0 to keep current value
Allowlist Targets Targets are pool-specific — gauge and LP token addresses vary per pool.
sherwood vault add-target --target 0xcF77a3Ba9A5CA399B7c97c74d54e5b1Beb874E43 # Aerodrome Router sherwood vault add-target --target 0x940181a94A35A4569E4529A3CDfB74e38FD98631 # AERO Token sherwood vault add-target --target < token-a-addres s > # Token A sherwood vault add-target --target < token-b-addres s > # Token B sherwood vault add-target --target < gauge-addres s > # Pool gauge sherwood vault add-target --target < lp-token-addres s > # Pool LP token sherwood vault add-target --target < strategy-clone-addres s > # Your strategy clone
Addresses (Base Mainnet) Contract Address AerodromeLPStrategy template 0x1c61c740702690B86b874ab929A6F04A4Ec56C1cAerodrome Router 0xcF77a3Ba9A5CA399B7c97c74d54e5b1Beb874E43Aerodrome Default Factory 0x420DD381b31aEf6683db6B902084cB0FFECe40DaAERO 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.
