On-base DeFi deposits are rising as yield farmers grow the airfield crop

The total value is deposited in various DeFi According to DeFiLlama data, contracts on the Coinbase-founded Base network hit a new all-time high of $301.2 million, increasing by 53% overnight.

This increase in deposits on the Ethereum Layer 2 network can be attributed to the liquidity mining incentives on the newly launched Aerodrome decentralized exchange.

Liquidity mining, also called yield farming, refers to the incentives a project provides to users who join the platform. In this case, Areodrome essentially pays users for simply transacting on the platform.

Aerodrome is a fork of Velodrome, a popular optimism-themed decentralized exchange.

Aerodrome was also launched on August 29 by the same team and introduced liquidity mining for its native governance token AERO.

The project earmarked 10% of Aerodrome’s initial token supply of 500 million tokens for liquidity mining. The team also airdropped 40% of the initial supply to Velodrome’s VELO token holders.

AERO emissions began on August 30th.

Shortly after, Aerodrom’s total liquidity rose from around $3 million to $144 million, according to DeFiLama data, as users rushed to farm AERO tokens.

The basic ecosystem is still emerging

Base’s DeFi ecosystem is still in its infancy, with meme coins dominating activity and lending protocols like Spirit According to DeFiLlama, liquidity is tight and total collateral is currently less than $1 million.

Ethereum Layer 2 saw significant usage due to the social media app Friend.tech.

Daily transaction count on Base. Source: Basic Mainnet Explorer.

However, the daily transaction count on Base appears to have stalled, falling from a high of 1.4 million on August 21 to just over 400,000 transactions yesterday as activity on the social media app plummeted.

Total value bridged on base layer 2 increased from $254.6 million to $311.7 million, up 22% overnight, according to L2Beat data.

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