Base Layer 2 TVL Surpasses $400 Million Following Decentralized Exchange Launch
The total value locked (TVL) on the Base Layer 2 network has risen to more than $400 million since the launch of the airport’s decentralized exchange.
The latest information from DefiLlama shows that TVL of Base, a layer-two Ethereum (ETH) network developed at Coinbase, increased by more than 56% to $405.66 million in the past week.
This increase was mainly supported by the introduction of Aerodrome, a new market for trading and liquidity, on the network.
The airport had a slow start when it was launched on August 28th. It brought in less than $5 million in cash over the first two days. However, since August 31, the deposits started to grow, eventually reaching more than $170 million in just 24 hours.
With a TVL of $189.6 million, Aerodrome now accounts for nearly half of the TVL on base. It also enabled the network to jump ahead of the zkSync Era to become the third-ranked L2 TVL player after Arbitrum and Optimism (OP).
What is the airport?
Aerodrome is a subsidiary of Velodrome Finance and is the largest DEX on optimism in terms of revenue and TVL. Speaking to the media in the wake of Aerodrome’s recent boom, the Velodrome development team described Aerodrome’s performance as a “validation” of its belief that ecosystem-native DEXs can thrive.
Powerfully, the decentralized exchange on which Velodrome and Aerodrome relied came under fire when first introduced, when bugs in its code and issues with the token incentive structure alienated customers and liquidity providers. However, with Aerodrome, the Velodrome team claims to have fixed Solidly’s flaws.
The Velodrome had a TVL value of $163.36 million at the time of writing, according to DeFiLlama. That’s more than $26 million less than the airport. Despite its longevity, the Velodrome has a much higher annual revenue of $36.67 million, compared to $2.6 million for the airport.