Aerodrome,adecentralizedexchangeontheBaseplatform,capturesasignificantshareoftradingturnoverintheCLsegment.Fromarecentannouncement,companyofficialsnotedthatitsSlipstreampoolscapture90%ofthetotalvolumeofconcentratedliquidityonBasedespitecompetitionfromotherplayerssuchasUniswapV3.
AerodromeDominatesConcentratedLiquidityon@base✈️
Aerodrome\'sSlipstreampoolsconsistentlycapturethemajorityofCL.Lastweek,90%ofthevolumeflowedthroughAerodromecomparedtojust10%forUniswapV3.
100%ofswapfeesaredistributedtoveAEROvoters.pic.twitter.com/hQcshElf9m
—Aerodrome(@AerodromeFi)October14,2024
Aerodrome’sSlipstreamPoolsLeadtheCharge
ConcentratedliquidityhasconfiguredtheDeFispaceasaliquidityproviderthatcandirectcapitalmoreeffectivelyinagivenpriceband,enhancingmarketdepthandreducingtrader’sslippagecosts.SlipstreampoolsofAerodromehavebecometheobvioussolutionfortradersandliquidityprovidersintheBasenetwork.Thesepoolsareefficientincapitalutilizationandprovideattractiveremunerationforparticipants,assistingAerodromeinachievingitsmarketleadership.
Bycomparison,UniswapV3,oneoftheleadingdecentralizedexchangesinDeFiprojects,isfarbehind,takingonly10%ofBase’stotaltradevolume.ThedailyvolumechartthatAerodromehasprovidedshowsthisclearlead,withAerodromeaheadofUniswapV3inrecentmonthsasmorecapitalhasfloodedintoSlipstreampools.
100%FeeDistributiontoveAEROVoters
OneofthefactorsthathelpedAerodromesucceedwasthecorrectrewardsystem.Aerodromereturns100%ofswapfeestoveAEROcommunitymemberswhousetheirAEROtokenstoparticipateinprotocoldecisionsandfeedistribution.Thisprovidesagoodreasonforparticipantstobringliquidityandusetheplatform.
Byincentivizingliquidityproviders,traders,andgovernanceparticipants,themodelaimstokeepalltheseparticipantsactivelyinvolvedintheprotocol.
TheBattleforLiquidity:Aerodromevs.UniswapV3
Aerodrometooklittletimetobecomethego-toplatformforconcentratingliquidity,particularlyonBase,whereUniswapV3hadalreadyestablisheditsCLmodel.Still,thefactthatAerodromehasmanagedtosecuresuchalargeportionofBase’svolumewithinarelativelybriefperiodsuggeststhattheUniswapV3isatadisadvantageregardingliquidityanduserexperience.
ThegapbetweentheAerodromeandUniswapV3constantlyincreases,asseeninthedailyvolumechart.SinceearlyMay2024,themarketshareofAerodromehasincreasednotably.
FutureOutlookforAerodrome
Tosustainthisleadinthefuture,AerodromemuststillinnovateandprovidevaluetoitsuserssincecompetitorssuchasUniswapV3arecurrentlytryingtoregainamarketshare.But,thecurrentstatusoftheplatformanditsscaleinthecontextofconcentratedliquidityindicateitcandowellinBase.
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