Base network's DeFi ecosystem thrives as Aerodrome Finance and other protocols drive innovation and liquidity.
Decentralized finance is rapidly gaining traction, and the Base network is at the forefront of this movement. The total value locked (TVL) in Base protocols has reached approximately $1.43 billion, showcasing the growing adoption of DeFi solutions. Among these protocols, Aerodrome Finance stands out as a leader, with a TVL of $574 million.
Aerodrome Finance has emerged as a dominant player in the Base network, capturing significant attention and investment. In just 30 days, Aerodrome's TVL grew by 2.38%, highlighting its pivotal role in the ecosystem. This rapid growth underscores the protocol's ability to attract and retain liquidity, making it a cornerstone of the Base DeFi landscape.
Aerodrome Finance's success can be attributed to its innovative core mechanism, Ve(3,3). This mechanism combines elements from Curve's veCRV model and OlympusDAO's 3v3 game theory. The Ve(3,3) model balances the interests of holders and traders, enhancing protocol revenue and efficiency in rewarding liquidity providers.
The flywheel effect, a self-reinforcing cycle where increased liquidity attracts more users, which in turn attracts more liquidity, has played a crucial role in Aerodrome's rapid growth. Within 24 hours of its launch, Aerodrome attracted nearly $200 million in TVL, accounting for 51.7% of the total TVL on the Base chain.
While Aerodrome Finance leads the pack, other protocols also contribute significantly to the Base network's DeFi ecosystem. Uniswap, a well-known decentralized exchange, has a TVL of $173 million, despite experiencing a 13.4% decline. Extra Finance follows with a TVL of $92.7 million, showcasing the diversity of services and investments within the Base DeFi landscape.
Additionally, protocols like Aave and Morpho Blue feature prominently, offering a range of financial services that cater to different user needs. This diversity ensures that the Base network remains a robust and versatile platform for DeFi enthusiasts.
