Decentralized finance (DeFi) solution Velodrome has introduced Aerodrome, a fresh decentralized exchange (DEX) tailored for Coinbase’s Base layer 2 blockchain.
This novel DEX assures traders the ability to exchange tokens with scarce slippage and at reduced costs. Moreover, it offers governance tokens as rewards, which can be utilized for decision-making votes and may also appreciate in value.
Aerodrome portrays itself on its official site as an advanced automated market maker. It aims to be the primary liquidity center for Base, merging an effective liquidity boost mechanism, a vote-lock governance structure, and a user-centric interface.
‘The DeFi era on Base has begun’
In a recent announcement on social media platform X, the Aerodrome team heralded, “The DeFi chapter on [Base] has now been initiated.”
Further insights regarding Aerodrome’s functionality and the significance of its governance token, AERO, were also detailed in a subsequent thread on X.
To reward its DEX users, Aerodrome is planning an airdrop of its AERO token to those who possess veVELO tokens or have locked Velodrome (VELO) tokens.
As per the initiative’s details, a substantial 40% of the AERO tokens will be distributed to the holders of veVELO.
Aerodrome’s new DEX intends to harness the ‘liquidity flywheel’ mechanism — a recurrent process in DeFi where an increase in user count deepens liquidity. This enhanced liquidity results in reduced slippage, further drawing more users to the platform.
Current statistics from the DeFi monitoring website, DefiLlama, indicate that Velodrome boasts a total value locked (TVL) surpassing $193 million (118 ETH). In comparison, Aerodrome’s current TVL stands close to $1 million, equivalent to 562 ETH.
