Aerodrome, a decentralized change on the Base platform, achieves a big share of buying and selling turnover within the CL section. From a latest announcement, firm officers famous that the Slipstream swimming pools seize 90% of the entire quantity of concentrated liquidity on Base, regardless of competitors from different gamers reminiscent of Uniswap V3.
Aerodrome dominates concentrated liquidity on @base ✈️
Aerodrome’s Slipstream swimming pools persistently seize nearly all of CL. Final week, 90% of quantity flowed by way of Aerodrome, in comparison with simply 10% for Uniswap V3.
100% of the swap charges are paid out to veAERO voters. pic.twitter.com/hQcshElf9m
— Airport (@AerodromeFi) October 14, 2024
The airport’s Slipstream Swimming pools lead the assault
Concentrated liquidity has configured the DeFi house as a liquidity supplier that may extra successfully direct capital right into a given worth vary, rising market depth and decreasing merchants’ slippage prices. Aerodrome slipstream swimming pools have change into the apparent answer for merchants and liquidity suppliers within the Base community. These swimming pools are environment friendly in using capital and supply engaging rewards to members, serving to Aerodrome obtain its market management.
Compared, Uniswap V3, one of many main decentralized exchanges in DeFi tasks, is much behind, taking solely 10% of Base’s complete buying and selling quantity. The each day quantity chart offered by Aerodrome exhibits this clear lead, with Aerodrome main Uniswap V3 in latest months as extra capital has flowed into the Slipstream swimming pools.
100% reimbursement distribution amongst veAERO voters
One of many elements that helped Aerodrome succeed was the suitable reward system. Aerodrome returns 100% of swap charges to members of the veAERO neighborhood who use their AERO tokens to take part in protocol choices and price distribution. It is a good motive for members to offer liquidity and use the platform.
By encouraging liquidity suppliers, merchants and board members, the mannequin goals to maintain all these members actively concerned within the protocol.
The Battle for Liquidity: Aerodrome vs. Uniswap V3
Aerodrome took little time to change into the platform for concentrating liquidity, particularly on Base, the place Uniswap V3 had already established its CL mannequin. Nonetheless, the truth that Aerodrome has managed to safe such a big portion of Base’s quantity inside a comparatively brief time frame means that the Uniswap V3 is at a drawback when it comes to liquidity and person expertise.
The hole between the airport and Uniswap V3 is continually widening, as proven by the each day quantity chart. For the reason that starting of Could 2024, Aerodrome’s market share has elevated considerably.
Future prospects for the aerodrome
To take care of this lead sooner or later, Aerodrome should proceed to innovate and supply worth to its customers, as opponents reminiscent of Uniswap V3 are at the moment making an attempt to regain market share. However the present standing of the platform and its measurement within the context of concentrated liquidity point out that it may possibly do properly in Base.