Aerodrome DEX Boosts Layer-2 Base TVL by 60% in One Day

Aerodrome DEX Boosts Layer-2 Base TVL by 60% in One Day

The liquidity reward program on Aerodrome has attracted $160 million in liquidity to the layer-2 Base network.

According to data from DefiLlama, the total value locked (TVL) on the Base layer-2 network has surged by over 60% in the past 24 hours, rising from $190 million to $319 million.

This growth has allowed Base to maintain its position as the third-highest TVL rollup layer-2 solution on Ethereum, trailing only Arbitrum and Optimism.

TVL Growth Driven by Aerodrome Launch

The spike in TVL was directly influenced by the launch of the Aerodrome DEX on Base on August 28, developed by the team behind Velodrome on Optimism.

On August 31 alone, Aerodrome's TVL increased by $150 million, contributing significantly to the overall TVL on Base.

Incentives for Liquidity Providers

The rapid influx of assets to Aerodrome Finance can be attributed to the ongoing liquidity reward program, which incentivizes users with AERO tokens.

AERO serves as both the governance and reward token for Aerodrome, with a total supply of 500 million tokens. The initial supply of 50 million tokens is allocated as rewards to encourage liquidity provision on the DEX. The remaining 450 million AERO tokens will be unlocked gradually over the next four years.

Additionally, Aerodrome announced an airdrop of veAERO, the locked version of AERO, to holders of veVELO, the locked version of Velodrome's VELO token.

Conclusion

The launch of Aerodrome and its attractive reward program have played a crucial role in driving significant liquidity to the Base network, further establishing its presence in the layer-2 space. With the continuous growth in TVL, Base is well-positioned to compete with other major layer-2 solutions on Ethereum.