Aerodrome Fuels Base’s $2B TVL with $1 Billion in Deposits

Base, a Layer 2 Ethereum network backed by Coinbase, has also surged in TVL this year to hit $2 billion. This growth in the deposit is mainly attributed to the rise of the decentralized exchange (DEX) Aerodrome, which takes up almost half of Base’s TVL. Aerodrome has contributed over $1 billion alone, which was $120 million in January 2023.

Aerodrome’s Market Dominance

This shows that Aerodrome is the biggest DeFi protocol on Base, as it is one of the most famous facilities on the platform. It now dominates over 50% of Base’s DeFi ecosystem and outperforms other platforms in terms of transactions and fees. The Aerodrome has quickly become one of Base’s most important features as the platform continues to grow.

As of September 2024, base defi aggregation platform DeFiLlama shows that Aerodrome is leading other decentralized exchanges in the base in terms of lock-up value and trading volume. More than $9 billion of on-chain swaps were processed in September. Although the trading volume is relatively low compared to Uniswap and PancakeSwap, it means that Aerodrome is still becoming a significant player in the DeFi industry.

Aerodrome Launch Details

Aerodrome was deployed on Base in September 2023 by the team that created Velodrome Finance, which is a DEX on the OP Mainnet. Aerodrome also follows the same model but with incentives targeted at defi and governance. The AERO token is used in the platform, and users are allowed to stake their AERO to get veAERO. This token allows them to vote and receive a share of the protocol fees.

This incentive system has been very important in Aerodrome’s expansion. This allows users to earn some form of reward and also helps determine the platform’s direction. Similar to Velodrome’s vote-escrowed model deployed on OP Mainnet, it has successfully attracted users and boosted participation.

Strengthening DeFi Role

This is a result of Aerodrome’s strong presence on Base, and as such, the network has established itself in the Layer 2 Ethereum market. The network is now taking the mantle of a key player in decentralized finance, with Aerodrome at the forefront.

As TVL keeps increasing and Aerodrome’s user base increases, Base is becoming a big player in the DeFi industry. As more users come into the platform, Base can only be expected to grow further due to the success of Aerodrome and other protocols.