The Total Value Locked (TVL) on the Base Layer 2 Network Soars to Over $400 Million with Launch of Aerodrome
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Base Layer 2 Network’s Total Value Locked (TVL) Surpasses $400 Million
The total value locked (TVL) on the Base Layer 2 network has reached over $400 million since the launch of the airport’s decentralized exchange.
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The Increase in TVL on Base Layer 2 Network
According to DefiLlama, the TVL of Base, a layer-two Ethereum network developed at Coinbase, has grown by more than 56% to $405.66 million in the past week.
Aerodrome Boosts TVL on the Network
This significant increase is primarily driven by the introduction of Aerodrome, a new market for trading and liquidity, on the Base Layer 2 network.
Initially, the airport had a slow start after its launch on August 28th, generating less than $5 million in cash over the first two days. However, since August 31, deposits have started to grow rapidly, eventually reaching over $170 million in just 24 hours.
Aerodrome’s Contribution to TVL on Base Layer 2 Network
Aerodrome currently accounts for nearly half of the TVL on the Base Layer 2 network, with a TVL of $189.6 million. This achievement has propelled the network to become the third-ranked layer-two TVL player, surpassing the zkSync Era and trailing behind Arbitrum and Optimism (OP).
What is Aerodrome?
Aerodrome is a subsidiary of Velodrome Finance and is the largest decentralized exchange (DEX) on optimism in terms of revenue and TVL. The development team at Velodrome views Aerodrome’s recent success as a validation of their belief that ecosystem-native DEXs can thrive.
Initially, the decentralized exchange relied upon by Velodrome and Aerodrome faced criticism due to code bugs and issues with the token incentive structure, which deterred customers and liquidity providers. However, the Velodrome team claims to have successfully addressed these flaws with Aerodrome.
As of now, Velodrome has a TVL value of $163.36 million, which is $26 million less than Aerodrome. Despite this difference, Velodrome has a significantly higher annual revenue of $36.67 million compared to $2.6 million for Aerodrome.
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