Aerodrome LP

Provide liquidity on Aerodrome with optional gauge staking for AERO rewards

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

[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• On settlement, LP is withdrawn from the gauge and AERO rewards are claimed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" \
  --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
--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	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
minAmountAOut	Minimum tokenA on removeLiquidity
minAmountBOut	Minimum 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-address>                             # Token A
sherwood vault add-target --target <token-b-address>                             # Token B
sherwood vault add-target --target <gauge-address>                               # Pool gauge
sherwood vault add-target --target <lp-token-address>                            # Pool LP token
sherwood vault add-target --target <strategy-clone-address>                      # Your strategy clone

Addresses (Base Mainnet)

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.