Aerodrome Finance, a decentralized exchange (DEX) built on the Base network, has surpassed $1 billion in deposits, making up over half of Base’s total value locked (TVL). The Layer 2 Ethereum network incubated by Coinbase has seen a massive surge in user deposits, reaching $2 billion in total TVL, with Aerodrome playing a pivotal role in its growth.
Aerodrome’s Rapid Rise on Base
Launched as a fork of Velodrome Finance on OP Mainnet, Aerodrome has quickly become the largest DEX on Base. Since its launch in September 2023, Aerodrome’s deposits have grown from $120 million to over $1 billion, accounting for more than 50% of the DeFi activity on the network. The protocol has also overtaken other DeFi giants like Uniswap and Aave in terms of volume and fees on Base.
According to DeFiLlama data, Aerodrome processed $9.02 billion in on-chain swap volume last month, placing it alongside Solana-based DEXs like Orca and Raydium, which recorded similar volumes. However, Aerodrome still trails behind larger platforms such as Uniswap on Ethereum and PancakeSwap on BNB Chain.
Incentive-Driven Growth
Aerodrome’s success can be attributed to its unique governance model, which incentivizes users to stake its governance token, AERO, in exchange for veAERO. This token grants holders voting power and a share of the protocol’s fees, encouraging long-term participation in the ecosystem. This approach has allowed Aerodrome to capture a significant portion of Base’s DeFi market, solidifying its position as the leading protocol on the network.
Source: The Block
