Base, a Layer 2 Ethereum network, has reached $2 billion in total value locked (TVL), with decentralized exchange Aerodrome contributing over $1 billion.
Base, a Layer 2 Ethereum network currently being incubated at Coinbase, experienced a significant increase in its total value locked (or user deposits) to $2 billion. This amount is more than five times the network’s deposits year-to-date.
Aerodrome, a decentralized exchange, contributes over $1 billion in deposits, nearly half of Base’s TVL. This figure has increased from $120 million in January. Its deposits account for over 50% of the total TVL in the DeFi ecosystem on Base.
DeFiLlama data indicates that Aerodrome is the most significant decentralized exchange protocol on Base, surpassing DeFi heavyweights such as Uniswap and Aave regarding volume, fees, and total value locked.
In terms of on-chain swap volume, The Block’s data dashboard indicates that Aerodrome processed $9.02 billion last month, which is comparable to Solana DEXs such as Orca and Raydium, which each recorded volumes in the $9-$10 billion range.
This analysis is conducted across all chains. Nevertheless, Aerodrome’s volume is lower than other platforms, including Uniswap (on Ethereum mainnet) and PancakeSwap (on BNB Chain).
In September 2023, the development team at Velodrome Finance (a decentralized exchange on OP Mainnet) introduced Aerodrome on Base as a forked variant.
Subsequently, it has enabled numerous on-chain exchanges on the Base network. This method is comparable to the strategy employed on the OP Mainnet with Velodrome, which entails implementing a series of decentralized finance incentives and vote-escrowed governance.
This system encourages users to stake the AERO governance token in exchange for veAERO. This additional token grants holders the right to receive a portion of the protocol fees in proportion to their ballots.
Aerodrome and Velodrome are variants of Solidly that use Andre Cronje’s ve (3,3) design.
