Author: @YashasEdu
Translation: Blockchain in Plain Language
When Base launched in August 2023, many skeptics called it "just another L2 fork". However, to date: Base has $3.79 billion in Total Value Locked (TVL), over $18 billion in daily trading volume, and over $3.5 billion in stablecoin circulation. Let's explore the reasons behind this growth.
1. Ecosystem
Base's ecosystem is thriving across various domains, including:
SocialFi, such as @farcaster_xyz, @zora, and @friendtech;
MEME L3, such as @DegencChain;
AI, such as @virtuals_io;
DeFi, such as @AerodromeFi and @MoonwellDeFi.
2. Trading Volume
The trading volume is also staggering:
• Daily trading volume: $1.934 billion
• Weekly trading volume: $11.9 billion
• Monthly trading volume: $43 billion
Ranking behind Solana and Ethereum in trading volume. With the growth of Clanker, it may even challenge these top positions.
3. Liquidity
Let's talk about liquidity. The stablecoin circulation is $3.54 billion. The most indicative data is cross-chain inflows, with a net inflow of $756 million just last month, and a total inflow of $1.2 billion over the past three months, double the inflow to Solana.
Capital flows to where value is being created, and Base is creating value.
@AerodromeFi (AERO) is a major driver of Base's growth, with a TVL of $14.7 billion. Their secret to success lies in their vAMM solution, which successfully addresses the impermanent loss problem for liquidity providers (LPs).
Traditional AMMs can suffer up to 40% in arbitrage losses, but Aerodrome has completely changed this landscape.
@AlienBaseDEX has transformed DeFi trading with Epsilon.
Imagine a seamless interface that integrates all decentralized exchanges (DEXs), all trading paths, and all analytics tools.
This is why ALB has surged 80x this year.
Next is @MorphoLabs, the fusion of traditional finance and DeFi.
Backed by a16z and Coinbase Ventures, they have improved their lending functionality through order book efficiency. The result? Combining institutional-grade lending with the flexibility of DeFi, Morpho has recently surpassed Compound in total deposits.
When the WBTC turmoil occurred, @MoonwellDeFi was ready and quickly became the leading BTC staking yield on Base. Now, they are at the forefront of cbBTC integration and have achieved an impressive 6x growth.
@OriginProtocol, founded by one of the co-founders of PayPal, has developed an impressive product. Their SuperOETHb combines smart ETH staking with liquidity provider strategies to offer a 21% APY.
Of course, there are other outstanding projects, such as:
@AnzenFinance is establishing operational standards for RWA. Their $USDz and $sUSDz bring real-world treasury yields into DeFi, offering 15% APY with institutional-grade security.
@ExtraFi_io has also taken staking yields to new heights. Their $1.41 billion TVL continues to grow, with the market recognizing their achievements.
4. Conclusion
Base has shown us a successful model of DeFi, where institutional support and community innovation come together to deliver real yield and sustainable growth.
