Aerodrome’s TVL Hits $1 Billion Milestone on Base
Aerodrome, a decentralized exchange platform on the Base, has recently achieved a significant milestone by surpassing $1 billion in total value locked (TVL). The platform has seen a remarkable surge in deposits into its liquidity protocol, with data from DeFiLlama showing a 22% increase in TVL over the past week.
Launched in August 2023, Aerodrome quickly gained traction and became the top DEX platform on the Ethereum layer-2 chain Base. Within weeks of its launch, the protocol helped Base’s TVL surpass $400 million. The growth of Aerodrome has been further accelerated in 2024, especially after the introduction of a Base ecosystem fund in February.
As of September 27, 2024, Aerodrome Finance’s TVL stood at $1.02 billion, making it the highest among all protocols on Base. This achievement has solidified Aerodrome’s position as a key player in the decentralized finance (DeFi) space, with its platform attracting a significant amount of liquidity.
The Rise of Aerodrome and AERO Price Surge
The recent surge in Aerodrome’s TVL has been accompanied by a notable increase in the price of its native token, AERO. Over the past 24 hours, the AERO price has risen by 23%, reaching around $1.27. In the span of a week, the token has surged by 50%, reflecting the growing interest and confidence in Aerodrome’s platform.
Aerodrome’s success can be attributed to its innovative approach to decentralized trading. As an automated market maker, the platform provides users with a decentralized environment where they can deposit tokens into liquidity pools. In return, users receive liquidity provider tokens (LP tokens), which can be staked to earn rewards in AERO and the governance token veAERO.
Aerodrome’s Dominance in Base’s Ecosystem
Aerodrome’s rapid growth has positioned it as a dominant force within Base’s ecosystem. The platform currently accounts for over a third of Base’s total value locked, with more than $1 billion in assets locked in its DEX protocol. This level of dominance is unparalleled, as the next four highest protocols by deposits on Base do not even come close to Aerodrome’s TVL.
For comparison, decentralized finance protocol Aave (AAVE) V3 has $236 million in locked assets, while DEX platform Uniswap (UNI) ranks third with $222 million. Lending protocols Moonwell and Morpho Blue follow closely behind, with $192 million and $151 million in TVL respectively. Despite their strong presence, these protocols combined still fall short of Aerodrome’s impressive $1 billion TVL.
Aerodrome’s success is further underscored by its on-chain trading volume, which is the highest for pools across Ethereum, Bitcoin, USDC, and EURC. This level of activity highlights the platform’s importance as an economic engine within the Base ecosystem, driving substantial trading volume and liquidity across various crypto assets.
In conclusion, Aerodrome’s achievement of surpassing $1 billion in TVL marks a significant milestone for the platform and solidifies its position as a leader in the DeFi space. With its innovative approach to decentralized trading and strong presence within Base’s ecosystem, Aerodrome continues to attract liquidity and demonstrate its potential for further growth and success in the future.
