Unlocking the Power of Base Network: A Deep Dive into Layer 2 Ethereum
If youโre a crypto enthusiast looking to explore the latest developments in the world of decentralized finance, youโve probably heard about the Base network. This Layer 2 Ethereum solution, incubated at Coinbase, has been making waves in the industry. Letโs take a closer look at what Base has to offer and why itโs gaining traction among users:
Surging Total Value Locked (TVL)
โ Base networkโs total value locked has doubled since the start of March
โ DeFiLlama reports a TVL of nearly $1 billion on Base
โ Aerodrome, a decentralized exchange, contributes significantly to Baseโs TVL
โ Aerodromeโs TVL has seen a significant increase, fueled by user activity and Aero token value surge
The Birth of Aerodrome on Base
โ Velodrome Finance introduced Aerodrome on Base as a forked version in September 2023
โ The aim is to enhance on-chain liquidity and facilitate a large volume of swaps on the network
โ Similar strategy to Velodrome on OP Mainnet, leveraging DeFi incentives and vote-escrowed governance
Rise of Base Network
โ Public launch of Base mainnet in early August 2023
โ Currently the fourth most valuable Layer 2 blockchain in terms of TVL
โ Experiencing a surge in daily users and transactions post Dencun upgrade
UPDATED: March 26, 2024, 2:41AM EDT
Base, a Layer 2 Ethereum network incubated at Coinbase, saw its total value locked (or user deposits) surge to nearly $1 billion โ doubling the networkโs deposits since the start of March, which stood at $470 million.
According to DeFiLlama, the networkโs TVL stands at $970 million. Decentralized exchange Aerodrome accounts for nearly half of Baseโs TVL, contributing $424 million. Aerodromeโs TVL surged from $125 million in early February to now over $420 million, following an uptick in user activity on the exchange and a major spike in the value of its native Aero token.
The development team at Velodrome Finance (a decentralized exchange on OP Mainnet) introduced Aerodrome on Base as a forked version in September 2023.
Its aim is to improve on-chain liquidity on Base as well as process a large portion of swaps on the network. This approach is similar to its strategy on OP Mainnet with Velodrome, which involves using a set of decentralized finance incentives and vote-escrowed governance.
The Base mainnet became publicly available in early August 2023 and has since risen to become the fourth most valuable Layer 2 blockchain in terms of TVL, trailing other networks like Arbitrum, Optimism, and Blast. The Layer 2 network recorded a sudden spike in daily users and transactions, reaching record highs shortly after the Dencun upgrade.
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