Aerodrome is the largest DEX on the network and accounts for almost half of Base’s TVL.
Coinbase layer-2 network Base is currently witnessing exponential growth, having seen an impressive surge in its total value locked (TVL). The network’s TVL has surpassed $2 billion, more than five times what it was at the beginning of 2024. However, the hands of Aerodrome, a decentralized exchange (DEX), have been clearly behind this growth that has been nothing short of remarkable.
Aerodrome has become quite a dominant force in the DeFi ecosystem on Base. It is the largest DEX on the network and accounts for almost half of Base’s TVL. The exchange has contributed over $1 billion in deposits, marking a notable increase from just $120 million deposit base in January.
Aerodrome: Origin and How It Became the Driving Force behind Base Network
Aerodrome’s success can be traced to its origins. At least, for the major part. It was launched in September 2023 as a forked version of Velodrome, a DEX on the OP Mainnet developed by Velodrome Finance.
Both Aerodrome and Velodrome use the ve(3,3) design by Andre Cronje, which rewards users through vote-escrowed governance.
Now, this system encourages users to stake Aerodrome’s AERO governance token to receive veAERO. Ultimately, holders of the veAERO may then earn a share of protocol fees.
With this governance mechanism in place, it came as no surprise how Aerodrome has been able to rise through the ranks. Other than attracting a notable amount of liquidity, the platform quickly became a favorite for DeFi users looking to maximize their returns.
Interestingly, Aerodrome’s growth has not been one-sided but on all fronts. The exchange has scaled quite fast to surpass other DeFi giants such as Uniswap and Aave within the Base ecosystem.
Data from DeFiLlama proves this by showing that Aerodrome does not only lead in terms of TVL but also in the area of trading volume and fees generated.
Speaking about volumes, Aerodrome processed $9.02 billion in trades last month. This places the exchange at par with top Solana-based DEXs like Orca and Raydium, which each recorded volumes in the $9-$10 billion range.
Although Aerodrome’s volume still trails behind Uniswap on Ethereum and PancakeSwap on BNB Chain, its place as a major player in the DeFi space is under no doubts. More so, on the Base network.
Given the performances that Aerodrome has put up so far, the exchange remains a massive influence and will most likely continue to contribute immensely to the Base network’s growth. That is, as users seek faster, more scalable solutions for trading and liquidity provision.
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