Total Value Deposited in DeFi Contracts on Base Network Reaches All-Time High
The total value deposited into various DeFi contracts on the Coinbase-incubated Base network has reached a new all-time high of $301.2 million, marking a 53% increase overnight. This surge in deposits can be attributed to the liquidity mining incentives offered by the newly deployed decentralized exchange, Aerodrome.
Key Points:
- Aerodrome, a fork of Velodrome, launched on August 29 and introduced liquidity mining for its native governance token, AERO.
- 10% of Aerodrome’s initial token supply was designated for liquidity mining, with an additional 40% airdropped to Velodrome’s VELO token holders.
- AERO emissions began on August 30, leading to a significant increase in Aerodrome’s total liquidity from $3 million to $144 million.
- Base’s DeFi ecosystem is still in its early stages, with meme coins dominating activity and lending protocols like Aave experiencing scarce liquidity.
- The Ethereum layer-2 network saw increased usage due to the social media app Friend.tech.
Despite the rapid growth in liquidity on the Base network, it is important to note that the ecosystem is still in its early stages and faces challenges such as scarce liquidity in lending protocols. However, the introduction of Aerodrome and its liquidity mining incentives have attracted significant attention and deposits. This indicates the potential for further growth and development in the Base DeFi ecosystem.
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