The Total Value Locked (TVL) of Base, a Layer 2 Ethereum network, has moved past $390 million. This dramatic increase was primarily fueled by the launch of Aerodrome, a new decentralized exchange incubated on the Base network. The development has positioned Base as a formidable player in the decentralized finance (DeFi) landscape, attracting significant attention from both investors and developers.
The Aerodrome effect
Base’s TVL experienced a significant uptick following the introduction of Aerodrome, a decentralized exchange developed by Velodrome Finance. According to data from DeFiLlama, Base’s TVL doubled to over $380 million within a day of Aerodrome’s launch on August 28.
Aerodrome, one of the ecosystem native DEXs on Base network, has contributed nearly half of the network’s locked value, amounting to over $190 million. According to Alexander Cutler, co-founder of Aerodrome, this exceptional growth validates their thesis that DEXs native to an ecosystem can succeed. The development team’s strategy was to enhance liquidity on Base and process a significant portion of transactions on the network, similar to Velodrome’s approach on OP Mainnet.
A rapid ascent in the DeFi ecosystem
Base’s mainnet became publicly available in early August and has since become the fourth most valuable Layer 2 blockchain in terms of TVL. The network trails other established Layer 2 blockchains like Arbitrum One, Polygon, and OP Mainnet. Within less than a month of its public launch, Base has deployed a total of 101 protocols, including leading DeFi protocols such as Uniswap, Curve, and Aave. According to DeFiLlama, Base is now ranked 8th among the largest blockchain networks by TVL, with a total value of $391.11m at the time of press.
Coinbase developed the network and initially launched it on July 3 for developers. It opened to the public on August 9 and has gained significant traction in the decentralized finance ecosystem in less than a month.
However, it’s worth noting that Base has also been at the center of controversy, with several rug pulls taking place on it, including those involving the BALD memecoin, Magnate Finance, and SwirlLend.
In conclusion, the rapid ascent of Base’s TVL to over $390 million, fueled primarily by the launch of Aerodrome, signifies a pivotal moment in the network’s history. The network has not only attracted significant liquidity but has also successfully deployed more than 100 protocols, making it a rising star in the DeFi landscape.