Velodrome Launches New DEX Aerodrome on Layer-2 Base

Velodrome Officially Launches Aerodrome DEX on Layer-2 Base

Velodrome, a Leading AMM-DEX on OP Mainnet, Expands to Base

Introduction to Aerodrome

Velodrome Finance (VELO), the largest AMM-DEX on OP Mainnet in terms of total value locked (TVL) and revenue, has officially launched a new decentralized exchange (DEX) named Aerodrome on the layer-2 Base network, starting from August 28, 2023. Aerodrome aims to become the largest DEX on the Base layer-2 solution, leveraging its established protocols and partnerships.

Strategic Goals and Support

The launch of Aerodrome on Base is expected to capture significant liquidity and high transaction volume on the network, mirroring Velodrome's success on OP Mainnet. Over 20 partner projects are expected to support Aerodrome, helping it rapidly integrate and thrive within the ecosystem.

Alexander Cutler, co-founder of Velodrome, expressed optimism about Aerodrome's launch:

"The dominance of Velodrome on OP Mainnet is due to the native liquidity layers of the ecosystem, which have surpassed other multi-chain DEXes, and we aim to replicate that success on Base with Aerodrome."

Tokenomics and Airdrop

Aerodrome has announced a total initial supply of 500 million AERO tokens, with 40% allocated to veVELO holders as veAERO through an airdrop. This distribution is intended for users who have locked or voted with VELO tokens in exchange for veVELO.

Velodrome's Legacy on OP Mainnet

Velodrome Finance (VELO) is a DEX developed on the OP Mainnet (formerly Optimism), combining the DeFi models of Curve Finance (CRV) and Olympus DAO to revitalize Andre Cronje's ve(3,3) solution based on the Solidly project from the Fantom ecosystem.

TVL and Performance
According to DefiLlama, Velodrome holds a TVL of $193.28 million, securing its position as the largest DeFi protocol on OP Mainnet.

Past Controversies
Despite its success, Velodrome faced controversy in May 2022 when team member Gabagool.eth misappropriated $350,000 of the project’s funds for personal trading following a market crash.

Aerodrome's Potential

Aerodrome's launch on Base represents an ambitious expansion for Velodrome Finance, potentially replicating its success and strategic model on a new layer-2 network. The support from a robust partnership network and incentivized liquidity programs aim to establish Aerodrome as a major player in the DeFi landscape on Base.