TL;DR
- Aerodrome Finance Surpasses $1 Billion in Deposits on Base Network
- It represents more than half of the total value locked (TVL) in Base.
- Aerodrome has surpassed platforms like Uniswap and Aave on this network.
Aerodrome Finance has reached a major milestone on the Base Network, an Ethereum scaling solution backed by Coinbase.
The decentralized platform has managed to accumulate more than $1 billion in deposits, representing more than 50% of the total value locked (TVL) on the network, which recently increased to $2 billion. This growth has been exponential, as at the beginning of the year, deposits on Base were around $120 million, an impressive increase that has consolidated Aerodrome as the dominant platform in this ecosystem.
Aerodrome’s success at Base is reflected not only in deposits, but also in the volume of transactions and commissions generated.
According to data from DeFiLlama, Aerodrome has surpassed decentralized finance (DeFi) giants like Uniswap and Aave in terms of total value locked within the Base network. Additionally, it has processed $9.02 billion in on-chain trading volume in the past month — comparable to other decentralized exchanges on Solana such as Orca and Raydium but still behind big players like Uniswap on Ethereum and PancakeSwap on the BNB chain.
Aerodrome was launched in September 2023 by the Velodrome Finance team, a decentralized exchange platform on the OP Mainnet, as a fork of the latter. The strategy used in Aerodrome is similar to that of Velodrome, where users are incentivized to participate through a decentralized governance system based on the ve(3,3) model developed by Andre Cronje.
This model allows users who stake the AERO governance token to earn veAERO, entitling them to receive a proportional share of the protocol fees based on their votes.
Aerodrome dominates the Base network
Since its launch, Aerodrome has facilitated a considerable portion of transactions on Base. This has been made possible by its innovative approach to governance and rewards, which has attracted a growing community of users looking to maximize their returns through token staking and participation in governance.
By opting for an incentive system, Aerodrome has achieved great adoption within the Base DeFi ecosystem, which has allowed it to position itself above other prominent platforms.
While Aerodrome’s total volume still lags behind competitors like Uniswap and PancakeSwap on other networks, its growth on Base highlights its potential. The rewards-based governance model has been key to attracting liquidity and encouraging active user participation.
As the DeFi ecosystem continues to grow, platforms like Aerodrome will play a crucial role in expanding scalability solutions like Base while providing new opportunities for decentralized finance users.
This achievement highlights Aerodrome’s ability to lead in an emerging network, and its success thus far suggests it will continue to be a dominant force in the development of the Base network and the broader DeFi landscape.