Let’s dive into how Aerodrome (AERO) is absolutely killing it in the DeFi space, especially on the Base chain. If you’ve been following decentralized finance (DeFi) or Base, Coinbase’s Layer-2 blockchain, you’ve probably noticed Aerodrome’s insane rise in the past year.
What makes Aerodrome so special?
Well, the numbers speak for themselves. Right now, Aerodrome holds nearly 50% of the total value locked (TVL) on Base, and that’s not a small chunk of change—we’re talking over $1 billion locked in the protocol, up from just $120 million at the beginning of 2024. Base’s overall TVL is now sitting at $2.12 billion, so Aerodrome is clearly dominating the scene.
Aerodrome TVL, according to DefiLlama, October 2024
Aerodrome didn’t just pop up overnight. It launched in September 2023 as a fork of Velodrome (a DEX from the OP Mainnet), and it’s been on a rocket ride ever since. What sets it apart is how it’s built—Aerodrome uses the ve(3,3) model. This is a system originally designed by Andre Cronje that encourages long-term staking by rewarding users who lock up their tokens.
By locking AERO, the governance token of Aerodrome, you get veAERO in return, which gives you a share of the protocol’s transaction fees. So, you’re not just trading—you’re earning more the longer you’re involved. This creates a powerful flywheel effect: more users stake AERO, liquidity grows, and everyone gets a piece of the action.
Aerodrome is also dominating in trading volume and fees on Base. In fact, it’s processed over $9 billion in trades recently, putting it in the same league as Solana DEX giants like Orca and Raydium. While it’s not quite at the level of Ethereum’s Uniswap or BNB Chain’s PancakeSwap, it’s making big waves on Base. Plus, it’s outpacing major DeFi players like Uniswap and Aave within Base, leading in liquidity, trade volume, and the rewards game.
Why is Aerodrome’s growth so fast?
First, Base itself has been on a massive growth streak in 2024, with its TVL quintupling since January. And a lot of that growth can be traced right back to Aerodrome’s smart strategies. By incentivizing liquidity providers with rewards and giving AERO holders a share of the platform’s fees, Aerodrome has created a system that just keeps building on itself.
It’s pretty impressive to think that in just one year, Aerodrome has gone from being a new fork to becoming the largest protocol on Base. With the way things are going, it’s likely Aerodrome will continue to grow as Base becomes more popular for users who want fast, low-fee DeFi services.
Aerodrome isn’t just another decentralized exchange—it’s leading the charge on Base and proving that the right tokenomics and governance can make a huge impact in DeFi. If you’re into the DeFi space or curious about what’s happening on Base, Aerodrome is definitely one to watch.
