Aerodrome, a DEX on Base, the Ethereum Layer 2 network developed by Coinbase, is the biggest revenue generator in the sector so far this year.

Aerodrome, the largest DeFi protocol on Base with more than $500 million in total value locked (TVL), has generated nearly $119 million in revenue year-to-date

A decentralized exchange (DEX) on Base, the Ethereum Layer 2 network developed by Coinbase, Aerodrome has emerged as the top revenue generator in the sector so far this year.

Aerodrome, which boasts the largest DeFi protocol on Base with over $500 million in total value locked (TVL), has generated nearly $119 million in revenue year-to-date, according to Token Terminal. This figure dwarfs the revenue generated by Uniswap, the leading DEX by volume, which takes second place with $49 million.

Aerodrome's remarkable revenue performance can be attributed to several factors. The exchange experienced a surge in growth earlier this year following an investment in its native AERO token by Coinbase Ventures, which drove up the value of the token incentives offered by the DEX. This, in turn, attracted a large influx of liquidity, solidifying Aerodrome's position as the liquidity hub of Base.

Moreover, the exchange benefited from the Base memecoin mania, with tokens like BRETT, MOG, and DEGEN generating massive trading volumes during their heydays. These tokens further contributed to Aerodrome's overall trading volume.

Despite AERO's decline of over 70% from its April high, Aerodrome continues to process more than $200 million in daily volume, according to DeFiLlama. The exchange hit an all-time high of $765 million on August 5 as crypto markets crashed.

However, all this revenue came at a steep cost.

According to Token Terminal, Aerodrome spent $2.65 on incentives for every dollar in revenue generated.

Over $313 million worth of AERO tokens were awarded to liquidity providers in 2024, resulting in net negative earnings of $195 million for the year.

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