Opening a New Era of Liquidity: In-Depth Analysis of Aerodrome and Layer2 Revolution

In the booming development of blockchain technology, the rise of Layer2 networks is undoubtedly one of the most eye-catching highlights in recent years. Among them, the Base network, incubated by Coinbase, has shown an astonishing growth rate since early March, with the total value locked (TVL) surging to nearly $1 billion, doubling from $470 million at the beginning of March. This achievement not only reflects the strong appeal of the Base network but also highlights the immense potential of the decentralized finance (DeFi) sector.
In particular, the decentralized exchange Aerodrome occupies a significant portion of the Base network. According to DeFiLlama data, Aerodrome has become a major component of Base's TVL with its contribution of $424 million. Since early February, Aerodrome's TVL has skyrocketed from $125 million to over $420 million, a leap that can be attributed to increased user activity and the significant rise in the value of its native Aero token.

Further reports indicate that the value of the AERO token has seen an astonishing increase of 77% following the acquisition of Aerodrome Finance's undisclosed holdings by the Base Ecosystem fund led by CB Ventures. This not only underscores Aerodrome's leading position as the largest protocol on the Base blockchain but also reflects the market's recognition and support for its long-term value. As a Layer2 network built by Coinbase, Base has accumulated a TVL of $420 million since its launch in June, showcasing its vast development potential and market appeal.
This article will delve into the competitive landscape of Layer2 networks and the specifics of the Aerodrome project, analyzing its unique position in the current wave of blockchain technology and its future development prospects, aiming to provide readers with in-depth and precise analysis.

Exploring New Milestones in Ethereum Layer2 Networks: The Rise of Aerodrome and Optimism's Superchain Initiative

With the rapid growth of Ethereum Layer2 (L2) networks, a new blockchain revolution is quietly unfolding. Developers and user communities are increasingly turning to L2 networks in search of lower transaction fees (gas fees), faster transaction confirmation times, and shared security mechanisms. Data from the past three months shows that the daily transaction volume of L2 networks has exceeded twice that of the Ethereum mainnet, with the total locked value (TVL) of Optimism and Arbitrum accounting for 11% of Ethereum's Layer 1 TVL.
In the L2 ecosystem, although cross-chain decentralized exchanges (DEXs) face challenges in making a significant impact, ecosystem-centric protocols like Optimism's Velodrome have proven their importance as growth engines for emerging ecosystems. Velodrome, as a leading L2 DEX, boasts a TVL of approximately $250 million and over $5.9 billion in cumulative trading volume, playing a central role in liquidity for Optimism and contributing to ecosystem growth.
Against this backdrop, the Base network urgently needs its version of Velodrome—Aerodrome. While the L2 network faces scalability challenges from Ethereum, the fragmentation of user experience has become another major obstacle. To achieve interoperability, scalability, and a seamless user experience across L2 ecosystems, Optimism has begun to build a superchain—a shared security, communication, and infrastructure development environment for L2 networks to achieve globally scalable applications.

As two cornerstones of this vision, the Optimism mainnet and Coinbase's Base network—a secure, low-cost, and developer-friendly Ethereum L2 network built on the OP stack—are developing underlying technologies to support a unified superchain experience. This is crucial not only for chains and ecosystems built on the OP stack but also for the economic and commercial development of the ecosystem.
In this context, we are excited to announce Aerodrome—a protocol designed to run on Base, representing the latest advancements in ve(3,3) technology. It will not only introduce innovative features such as Night Ride UI, concentrated liquidity, and dynamic AERO FED but will also serve as the commercial and liquidity support layer for the Base ecosystem, driving project launches and the introduction of the next generation of protocols.
Optimism and the Base ecosystem both urgently need native solutions to meet their liquidity demands, support economic development, and fund public goods. Aerodrome has emerged in response to this need, aiming to become the center of liquidity and public goods on Base, maximizing project launches and development potential, and helping to build the future's most prominent on-chain user-guided engine.

Aerodrome: Leading a New Direction, Exploring the Future of Token Economics

The Core Engine of the Base Ecosystem

Aerodrome Finance is expected to launch on Base in collaboration with approximately 20 partners, immediately establishing its position as the primary liquidity engine and core of the ecosystem. Based on the latest Velodrome v2 technology stack, Aerodrome will introduce innovative features including concentrated liquidity, automatic voting, and an integrated veNFT marketplace. Additionally, in close collaboration with the Base team, Aerodrome has designed a set of directly embedded public goods jet engines, with 25% of the initial voting rights specifically reserved for ecosystem goods to enhance liquidity for key assets and support public goods financing (PGF) and voting rights, making $AERO the core driving force of the ecosystem.

The Landing Center for Liquidity

Aerodrome will become the landing center for protocols looking to deploy on Base, providing a capital-efficient way to quickly establish deep liquidity. By locking veAERO and incentivizing veAERO voters, the protocol can attract AERO emissions into its pools. As a voting reward, veAERO holders receive all trading fees and incentives from their selected pools, creating a self-balancing flywheel that rewards the highest yield participants.

Optimized Launch Parameters for Aerodrome

The launch parameters of Aerodrome have been meticulously optimized to incentivize early participants while ensuring a sustainable long-term development trajectory. The initial supply is set at 500 million AERO, with 450 million (90%) to be locked as veAERO.

veAERO Distribution Plan: Promoting Healthy Ecosystem Development

veVELO Holder Airdrop: As part of the top community in the DeFi space, veVELO holders will receive 40% of the initial supply, distributed according to their V2 veVELO balance, reinforcing the value of the Base ecosystem.
Ecosystem Pairs and Public Goods Fund: Specific veAERO voting rights will be used to support key currency pairs such as WETH-USDC and cbETH-WETH, with trading fees contributing to PGF to support the development of the underlying network.

Aerodrome Team and Protocol Subsidies: Ensuring Long-term Ecosystem Health

Aerodrome contributors will receive veAERO with a vesting period of 2-4 years, ensuring their commitment to the long-term health of the protocol and the entire ecosystem. Additionally, top protocols actively participating in the Aerodrome flywheel will receive veAERO voting right subsidies, bringing long-term value to partners.

AERO Pools and Aviation Distribution: Supporting Liquidity and Partner Development

A portion of veAERO is specifically allocated for voting on AERO token pairs to support healthy liquidity levels for the protocol. AERO tokens will be strategically used to complement incentives for ecosystem partners or attract additional votes for key liquidity pools.

Aerodrome Emission Plan: Accelerating Liquidity Growth in the Ecosystem

AERO emissions will start at 10 million AERO per cycle (week) and will follow a three-phase adjustment, gradually increasing during the take-off phase and gradually decreasing during the cruising phase, ultimately allowing veAERO voters to collectively decide on monetary policy through the Aero FED system, accelerating liquidity growth in the Aerodrome ecosystem and providing strong economic momentum for the Base network.
In the coming weeks, Aerodrome will announce the list of partners launching alongside it, committed to bringing liquidity, incentives, and integration to kickstart and advance the development of the Base economy.

Leading the Future of Blockchain: The Joint Growth of Aerodrome and the Layer2 Ecosystem

As Layer2 technology continues to mature and gain traction, we foresee an increasingly prosperous and competitive ecosystem gradually taking shape. Projects like Aerodrome play a crucial role in this process, injecting new vitality and momentum into the decentralized finance sector through innovative technologies and strategies. These advancements will not only drive the iterative updates of blockchain technology but also create unprecedented value and opportunities for users and developers.
Looking ahead, the vigorous development of the Layer2 ecosystem heralds the widespread application and popularization of blockchain technology, thereby accelerating the global transition to decentralized finance. In this process, projects like Aerodrome will continue to push the boundaries of technology and promote the healthy and sustainable development of the ecosystem. For investors and users, this not only means richer choices and higher quality services but also signifies more participation opportunities and potential returns.
In summary, the development of the Layer2 ecosystem will be a driving force for continuous progress and innovation in the blockchain industry, bringing broader perspectives and infinite possibilities to all participants. As technology continues to evolve and the ecosystem matures, we look forward to seeing more innovative projects like Aerodrome rise to collectively advance the future of blockchain technology.