Aerodrome Surpasses $1B in TVL, Leading the Base Ecosystem

Aerodrome has achieved a total value locked (TVL) exceeding $1 billion as deposits to the liquidity protocol surged.

According to data from DeFiLlama, Aerodrome, a decentralized exchange on the Base network, experienced a 22% increase in its TVL over the past week, reaching the impressive milestone of $1 billion. This achievement coincides with a notable rise in the price of AERO, which has increased by 23% in the last 24 hours and 50% in the past week to approximately $1.27.

Since its launch in August 2023, Aerodrome has established itself as the leading DEX on the Ethereum (ETH) layer-2 chain Base. Just weeks after launching, the protocol contributed to Base’s TVL exceeding $400 million. Its growth has intensified in 2024, fueled by a Base ecosystem fund that was introduced in February.

DeFiLlama data as of September 27, 2024, indicated that Aerodrome Finance boasts a total value locked of $1.02 billion, the highest among all protocols on Base.

At the time of writing, Base’s TVL is at $2.5 billion, reflecting a more than 400% increase since February 2024 when it was around $490 million.

More than a third of Base’s TVL is on Aerodrome

As an automated market maker, Aerodrome facilitates a decentralized trading environment where users can deposit tokens into liquidity pools. By depositing cryptocurrency pairs, users receive liquidity provider tokens, commonly known as LP tokens.

Staking LP tokens allows users to earn AERO as well as the governance token veAERO.

The accelerated growth has positioned Aerodrome as the protocol with the highest on-chain trading volume across pools for Ethereum, Bitcoin (BTC), USDC (USDC), and EURC.

With Aerodrome’s strong performance, more than a third of Base’s total value locked is held within its DEX protocol. According to DeFiLlama data, the next four leading protocols, even combined, do not reach its $1 billion TVL.

The decentralized finance protocol Aave (AAVE) V3 currently has $236 million in locked assets, while the DEX platform Uniswap (UNI) holds $222 million. Following them, lending protocols Moonwell and Morpho Blue have $192 million and $151 million in TVL, respectively, rounding out the top five.