Updated: October 3, 2024, 1:28 AM EDT
Base, a layer 2 Ethereum network incubated at Coinbase, has seen its total locked value (or user deposits) surge to $2 billion. This is more than five times the network deposit.
Decentralized exchange Aerodrome accounts for nearly half of Base’s TVL, with its deposit contribution increasing to more than $1 billion from $120 million in January. These deposits account for more than 50% of total TVL within Base’s DeFi ecosystem.
According to DeFiLlama data, Aerodrome is the largest decentralized exchange protocol on Base, surpassing DeFi giants such as Uniswap and Aave on the network in terms of total value locked as well as transaction volume and fees.
The Block’s data dashboard, which analyzes Aerodrome across all chains in terms of on-chain swap volume, shows that it processed $9.02 billion last month. This is similar to Solana DEXes like Orca and Raydium, which each recorded volumes in the $9 billion to $10 billion range. However, Aerodrome’s trading volume is still lower than others such as Uniswap (Ethereum mainnet) and PancakeSwap (BNB chain).
The development team of Velodrome Finance (a decentralized exchange on the OP mainnet) first released a fork version of Aerodrome on Base in September 2023.
Since then, it has facilitated a significant portion of on-chain swaps on its native network. This approach is similar to Velodrome’s OP mainnet strategy, which uses a series of decentralized financial incentives and voting escrow governance.
This system incentivizes users to stake. 
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Velodrome and Aerodrome are forks of Solidly, ve(3,3) design by Andre Cronje.
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