2 Billion TVL in One Day: A Detailed Explanation of Aerodrome's Core Mechanism Ve(3,3) and the Flywheel Effect
wublock.substack.com
Author: 0xMingyue WuBlockChain As described in the official Aerodrome documentation: Aerodrome Finance is a next-generation AMM designed to serve as Base’s central liquidity hub, combining a powerful liquidity incentive engine, vote-lock governance model, and friendly user experience[1]. Since the official launch of the Aerodrome protocol on August 31st, the protocol has attracted nearly $200 million in Total Value Locked (TVL) within just 24 hours. Its native token, $AERO, offers liquidity mining rewards with an annualized yield close to 1000% without compounding. According to data from Defillama on September 2nd, the total TVL on the Base chain was $379 million, while Aerodrome’s TVL reached an impressive $196 million, accounting for 51.7% of the total TVL on the Base chain. What is the magic mechanism that allowed a decentralized exchange (Dex) to achieve such remarkable success in such a short period? This article will start by exploring the core mechanism of Ve(3,3) (the core of Aerodrome), providing an in-depth introduction to Aerodrome’s core mechanism, the generation of its flywheel, and its future prospects.
2 Billion TVL in One Day: A Detailed Explanation of Aerodrome's Core Mechanism Ve(3,3) and the Flywheel Effect
2 Billion TVL in One Day: A Detailed…
2 Billion TVL in One Day: A Detailed Explanation of Aerodrome's Core Mechanism Ve(3,3) and the Flywheel Effect
Author: 0xMingyue WuBlockChain As described in the official Aerodrome documentation: Aerodrome Finance is a next-generation AMM designed to serve as Base’s central liquidity hub, combining a powerful liquidity incentive engine, vote-lock governance model, and friendly user experience[1]. Since the official launch of the Aerodrome protocol on August 31st, the protocol has attracted nearly $200 million in Total Value Locked (TVL) within just 24 hours. Its native token, $AERO, offers liquidity mining rewards with an annualized yield close to 1000% without compounding. According to data from Defillama on September 2nd, the total TVL on the Base chain was $379 million, while Aerodrome’s TVL reached an impressive $196 million, accounting for 51.7% of the total TVL on the Base chain. What is the magic mechanism that allowed a decentralized exchange (Dex) to achieve such remarkable success in such a short period? This article will start by exploring the core mechanism of Ve(3,3) (the core of Aerodrome), providing an in-depth introduction to Aerodrome’s core mechanism, the generation of its flywheel, and its future prospects.