Base, a Layer 2 Ethereum network incubated at Coinbase, saw a significant increase in total value locked (or user deposits) following the launch of a new decentralized exchange called Aerodrome.
According to DeFiLlama, the network’s TVL surpassed $380 million, double the amount of network deposits recorded on Aug. 28 when Aerodrome launched. Of Base’s total TVL, Aerodrome accounts for more than $200 million.
The Base mainnet was made publicly available in early August and has now become the fourth most valuable Layer 2 blockchain in terms of TVL, following other networks such as Arbitrum One, Polygon, and OP Mainnet.
“The growth has been extraordinary and is a validation of our thesis that ecosystem native DEXs can win,” Alexander Cutler, co-founder of Aerodrome, said in an interview with The Block.
Boosting liquidity on Base
The development team at Velodrome Finance (a decentralized exchange on OP Mainnet) introduced Aerodrome on Base as a forked version earlier in the week, in collaboration with 20 launch partners.
According to the development team, its aim is to boost liquidity on Base and process a large portion of transactions on the network. This approach is similar to its strategy on OP Mainnet with Velodrome, which involves using a set of decentralized finance incentives known as a “flywheel.”
“Prior to our launch, the liquidity landscape on Base was fractured and the DeFi ecosystem incomplete. We’ve now helped to onboard over 20 partners to Base and they’ve helped bring an explosion of liquidity to fuel the ecosystem,” Cutler added.
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