Opening a new era of liquidity: in-depth analysis of Aerodrome and Layer2 revolution

Author: 0xmonomi

In the booming development of blockchain technology, the rise of Layer 2 networks is undoubtedly one of the highlights that has attracted the most attention in the market in recent years. Among them, the Base network incubated by Coinbase has shown an astonishing growth rate since the beginning of March, with the total value locked (TVL) surging to nearly US$1 billion, only doubling from US$470 million in early March. This achievement not only reflects the strong appeal of the Base network, but also demonstrates the huge potential in the field of decentralized finance (DeFi).

In particular, the decentralized exchange Aerodrome occupies half of the Base network. According to DeFiLlama data, Aerodrome is a major component of Base TVL with its TVL contribution of $424 million. Since the beginning of February, Aerodrome’s TVL has soared from $125 million to over $420 million, a leap that has been fueled by increased user activity and a significant increase in the value of its native Aero token.

Further reports revealed that the value of the AERO token has experienced a staggering 77% increase after the Base Ecosystem fund led by CB Ventures acquired an undisclosed stake in Aerodrome Finance. This not only highlights Aerodrome’s leading position as the largest protocol on the Base blockchain, but also reflects the market’s recognition and support of its long-term value. As a layer 2 network built by Coinbase, Base’s accumulated TVL has reached US$420 million since its launch in June, demonstrating its huge development potential and market appeal.

This article will deeply explore the competition background of the Layer2 network and the specific content of the Aerodrome project, analyze its unique position in the current wave of blockchain technology and its future development prospects, with a view to providing readers with in-depth and accurate information. analyze.

Explore the new milestone of the Ethereum Layer2 network: the rise of Aerodrome and Optimism’s super chain plan

With the rapid growth of the Ethereum Layer2 (L2) network, a brand new block The chain revolution is quietly unfolding. Developers and user groups are increasingly turning to L2 networks, seeking lower transaction fees (gas fees), faster transaction confirmation speeds, and shared security mechanisms. Data in the last three months show that the daily transaction volume of the L2 network has exceeded twice that of the Ethereum main network, and the total locked value (TVL) of Optimism and Arbitrum accounts for 11% of the TVL of the first layer of Ethereum.

In the L2 ecosystem, although cross-chain decentralized exchanges (DEX) face challenges in making a significant impact, eco-centric protocols, such as Optimism’s Velodrome, have proven their ability as an emerging ecosystem The importance of system growth engines. Velodrome, as a leading L2 DEX with approximately $250 million in TVL and over $5.9 billion in cumulative trading volume, plays a central role in the growth of the ecosystem as the central hub of Optimism liquidity.

Faced with this background, Base Network urgently needs its version of Velodrome - Aerodrome. While the L2 network is facing Ethereum’s scalability challenges, the fragmentation of user experience has become another major obstacle. In order to achieve interoperability, scalability and seamless user experience across the L2 ecosystem, Optimism began to build a super chain - an L2 network environment that shares security, communication and infrastructure development to achieve global-scale applications.

As the 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 being developed to support a unified superchain experience. underlying technology. This is not only crucial to the chain and ecosystem built by the OP stack, but also key to the economic and commercial development of the ecosystem.

In this context, we are excited to announce Aerodrome, a protocol designed to run on Base and represent the latest advancements in ve(3,3) technology. Not only will it introduce innovative features such as Night Ride UI, centralized liquidity, and dynamic AERO FED, but it will also become the business and liquidity support layer of the Base ecosystem, driving project launches and the introduction of new generation protocols.

Both Optimism and the Base ecosystem are in urgent need of native solutions to meet their liquidity needs, support economic development, and fund public goods. Aerodrome came into being driven by this demand, aiming to become the center of liquidity and public products on Base, maximize project launch and development potential, and help build the most prominent on-chain user guidance engine in the future.

Aerodrome: Leading a new course and exploring the future of the token economy

The core engine of the Base ecosystem

Aerodrome Finance is expected to be launched on Base with approximately 20 partners, immediately Establish its position as the main liquidity engine and core of the ecosystem. Based on the latest Velodrome v2 technology stack, Aerodrome will introduce innovative features including centralized liquidity, automated voting and a built-in veNFT market. In addition, working closely with the Base team, Aerodrome has designed a directly embedded public goods jet engine, in which 25% of the initial voting rights are reserved exclusively for ecosystem commodities to enhance the liquidity of key assets and support the financing of public goods ( PGF) and voting rights, making $AERO the core driving force of the ecosystem.

A landing center for liquidity

Aerodrome will serve as a landing center for protocols that wish to be deployed on Base, providing a capital-efficient way to quickly build deep liquidity. By locking up veAERO and providing incentives to veAERO voters, the protocol is able to attract AERO emissions into its pool. In return for voting, veAERO holders receive all transaction fees and incentives from their chosen pool, creating a self-balancing flywheel that rewards the highest-producing participants.

Aerodrome’s launch parameter optimization strategy

Aerodrome’s launch parameters have been carefully optimized to incentivize early participants while ensuring a sustainable long-term development trajectory. The initial supply is set to 500M AERO, of which 450M (90%) will be locked as veAERO.

veAERO Distribution Plan: Promote the healthy development of the ecosystem

veVELO holder airdrop: As part of the top community in the DeFi field, veVELO holders will receive 40 of the initial supply %, distributed in proportion to its V2 veVELO balance, to strengthen the value of the Base ecosystem.

Ecological Pairs and Public Goods Fund: Specific veAERO voting rights are used to support key currency pairs such as WETH-USDC and cbETH-WETH, and their transaction fees will be contributed to the PGF to support the development of the underlying network .

Aerodrome team and protocol subsidies: guarantee of long-term ecosystem health

Aerodrome contributors will receive veAERO with a vesting period of 2-4 years to ensure their commitment to the long-term health of the protocol and the entire ecosystem. At the same time, top protocols that actively participate in the Aerodrome flywheel will receive veAERO voting rights subsidies, bringing long-term value to partners.

AERO Pool and Air Distribution: Supporting Liquidity and Partner Development

Part of veAERO is dedicated to voting on AERO token pairs, supporting the protocol’s healthy liquidity levels. AERO tokens will be used strategically to match incentives with ecosystem partners or attract additional votes from key liquidity pools.

Aerodrome Emission Plan: Accelerating Ecosystem Liquidity Growth

AERO emissions will start from 10M AERO per cycle (week) and follow three stages of adjustment, starting from the take-off period gradually Adding to the gradual attenuation of the cruise period, the monetary policy will eventually be jointly decided by veAERO voters through the Aero FED system, realizing the acceleration of the liquidity growth of the Aerodrome ecosystem and providing a strong economic power for the Base network.

In the coming weeks, Aerodrome will announce the list of partners it will launch with to bring liquidity, incentives and integration to launch and advance the base economy.

Leading the future of blockchain: The common growth of Aerodrome and Layer2 ecology

With the continuous maturity and promotion of Layer2 technology, we foresee that an increasingly prosperous and competitive ecosystem is gradually taking shape. Projects such as Aerodrome play a vital role in this process, injecting new vitality and power into the field of decentralized finance through innovative technologies and strategies. These developments will not only promote iterative updates of blockchain technology, but will also create unprecedented value and opportunities for users and developers.

Looking to the future, the vigorous development of Layer 2 ecology heralds the widespread application and popularization of blockchain technology, thereby accelerating the global transition to decentralized finance. In the process, projects like Aerodrome will continue to broaden the boundaries of technology and promote the healthy and sustainable development of ecosystems. For investors and users, this not only means richer choices and better services, but also indicates more participation opportunities and potential benefits.

To sum up, the development of Layer 2 ecology will be the source of power for the continuous progress and innovation of the blockchain industry, bringing a broader vision and unlimited possibilities to all participants. As technology continues to evolve and the ecosystem becomes increasingly mature, we look forward to seeing more innovative projects like Aerodrome emerge to jointly promote the future development of blockchain technology.