Aerodrome Skyrockets to DeFi Stardom, Becomes Powerhouse on Base Layer

In just seven months, decentralized exchange Aerodrome has surged to become the sixth-largest by TVL, reaching $580 million, a 382% increase from $120 million in January. The growth is driven by the surge in native token AERO and the addition of $126 million in USDC liquidity through its boost program. Aerodrome's TVL now comprises 46% of the total TVL on Base, contributing to the network's growing liquidity.

Aerodrome Soars to New Heights, Becoming a Force in Base DeFi

The decentralized exchange Aerodrome has reached an unprecedented milestone, surpassing $580 million in locked value (TVL) in its smart contracts. This remarkable growth, a surge of over 382% since January 1st, testifies to Aerodrome's burgeoning dominance in the burgeoning Base ecosystem.

Aerodrome's TVL has propelled it to the esteemed position of sixth largest exchange across all blockchain networks, trailing only industry behemoths such as Uniswap, Curve, PancakeSwap, Balancer, and Raydium. This accomplishment underscores Aerodrome's rapid ascent and its pivotal role in shaping the decentralized finance (DeFi) landscape on Base.

The surge in TVL is largely attributed to the soaring value of AERO, Aerodrome's native token, which climbed to an all-time high of $2.00 before stabilizing around $1.37 at the time of writing. This significant gain, representing an 81.2% increase over the past fortnight and a 183.4% jump over the month, has undoubtedly contributed to Aerodrome's burgeoning TVL.

Aerodrome's commitment to expanding USDC liquidity through its boost program is evident in the addition of over $126 million in USDC liquidity since December 2023. This strategic move signals Aerodrome's unwavering dedication to fostering adoption of Circle's stablecoin within the Base ecosystem.

Furthermore, Aerodrome has announced the extension of its boost program and its ongoing partnership with Gauntlet, a renowned risk management firm. This partnership allows for the doubling of Aerodrome's USDC match program, distributing a substantial $25,000 in USDC voting incentive boosts each week to protocol incentivizers.

The burgeoning liquidity on Aerodrome has had a profound impact on trading activity, with the exchange generating between $35 million and $50 million in daily trading volume over the past week. This surge in activity represents a significant leap from the mere $3.2 million in daily trading volume recorded during the first week of 2024.

Aerodrome's remarkable success is a testament to the burgeoning liquidity and adoption of the Base layer 2 network. Its ascent has solidified Base's position as a formidable contender in the DeFi arena.

Genesis: A Forked Path

Aerodrome emerged in August 2023 as a fork of Velodrome Finance, the dominant decentralized exchange on the Optimism layer 2 network. However, Aerodrome has eclipsed its predecessor's TVL, surpassing Velodrome's $170 million mark.

At the time of writing, Aerodrome accounts for a staggering 46% of the total TVL on Base. This dominance is further underscored by the surge in memecoin activity and transactions on Base. According to Artemis, a leading onchain intelligence firm, the daily number of transactions on Base has skyrocketed from 372,400 at the start of the year to an impressive 2.9 million as of yesterday.

Slipstream: A Liquidity Revolution

In the coming weeks, Aerodrome is poised to unveil Slipstream, its innovative concentrated liquidity pools. These pools promise to deliver "low slippage onchain swaps," as outlined in a Velodrome blog post. While Slipstream has already been implemented on Velodrome, these concentrated liquidity pools are eagerly anticipated on Aerodrome's native exchange.

Slippage refers to the discrepancy between a trader's intended price for an asset and the actual price at which the transaction is executed. Slipstream's mission is to minimize this slippage, thereby enhancing the trading experience for users.

Conclusion

Aerodrome's meteoric rise has firmly established it as a pivotal force in the Base DeFi ecosystem. Its soaring TVL, strategic partnerships, and innovative offerings have positioned it as a beacon of liquidity and innovation. As the Base network continues to flourish, Aerodrome will undoubtedly play an increasingly influential role in shaping the future of decentralized finance.