Here is Which Crypto Protocol Dominates the Base Blockchain Right Now

The Layer 2 Ethereum network Base, incubated by Coinbase, has seen its total value locked (TVL) soar to $2 billion, marking a fivefold increase in user deposits since the beginning of the year.

Aerodrome, a decentralized exchange, is a major contributor to this growth, accounting for over $1 billion of Base’s TVL—up from just $120 million in January. This makes Aerodrome responsible for more than half of all DeFi deposits on the network.

Data from DeFiLlama highlights Aerodrome as the top decentralized exchange on Base, leading in TVL, transaction volume, and fees, outpacing prominent platforms like Uniswap and Aave.

Across all chains, Aerodrome processed $9.02 billion in on-chain swap volume last month, competing with Solana’s DEXs like Orca and Raydium, which also reported similar volumes. However, it still falls short of the larger volumes seen by Uniswap on Ethereum and PancakeSwap on BNB Chain.

Launched as a fork of Velodrome Finance on Base in September 2023, Aerodrome has quickly become a key player in facilitating on-chain swaps.

Its approach, similar to Velodrome’s on the OP Mainnet, combines DeFi incentives with a vote-escrowed governance model that allows users to stake AERO tokens for veAERO, granting them a share of protocol fees in relation to their voting power. Both exchanges leverage the ve(3,3) design from the Solidly protocol.