Aerodrome Surpasses $1 Billion in Deposits, Leading DeFi Growth on Base

Aerodrome, the decentralized exchange on Base, now accounts for more than half of the network’s total value locked (TVL), contributing over $1 billion in deposits. Base’s TVL surged to $2 billion, making Aerodrome the largest DeFi protocol on the network.

Base, the Layer 2 Ethereum network incubated by Coinbase, has experienced a surge in total value locked (TVL) this year, with user deposits skyrocketing to $2 billion — a fivefold increase from the start of the year. Leading this growth is Aerodrome, a decentralized exchange (DEX) that has become the dominant DeFi protocol on Base.

According to DeFiLlama, Aerodrome currently accounts for more than $1 billion of Base’s TVL, representing over 50% of the total locked value within the network’s decentralized finance (DeFi) ecosystem. This is a significant jump from $120 million in deposits in January, making Aerodrome the largest DEX on Base by volume, fees, and TVL, surpassing other DeFi heavyweights like Uniswap and Aave on the network.

Aerodrome’s Rise in the DeFi Ecosystem

Aerodrome’s influence extends beyond just TVL. The Block’s data dashboard shows that the platform processed $9.02 billion in on-chain swap volume last month, comparable to leading Solana DEXs such as Orca and Raydium, which each recorded $9-$10 billion in volume. Despite this, Aerodrome’s volume still lags behind giants like Uniswap on Ethereum and PancakeSwap on the BNB Chain.

Launched in September 2023 by the development team behind Velodrome Finance — another decentralized exchange on the OP Mainnet — Aerodrome is a fork of Velodrome, utilizing a governance and incentive model based on Andre Cronje’s ve (3,3) design. This system encourages users to stake the native governance token, AERO, for veAERO, which grants holders the right to receive a proportional share of the protocol’s fees based on their voting power.

Aerodrome’s success on Base mirrors the team’s strategy on the OP Mainnet with Velodrome, where they have used a similar system of vote-escrowed governance and decentralized finance incentives to drive user engagement and liquidity.

TVL Growth Across the Base Network

Base’s total value locked has steadily increased throughout 2024, with Aerodrome leading the charge. Other DeFi protocols on Base have also benefited from this growth, but Aerodrome remains the top player in the ecosystem. With a focus on liquidity and swap volume, Aerodrome has positioned itself as the go-to platform for users seeking efficient DeFi services on Base.

As Base continues to grow, it will be interesting to see how Aerodrome and other protocols adapt to maintain their leadership positions in the DeFi space. The future looks promising for Base, with more users flocking to the network and increasing demand for decentralized services.

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