#On-Chain Activity

I wanted to check how is going the activity of Base, so I went to BaseSwap (a decentralized exchange (DEX), recently launched on Base) and check on Defillama platform and check how is the activity on Base.

So, according to DefiLlama's data, Baseswap ranks 1st with a TVL of $19.49M.

The TVL (Total Value Locked: for Dexes, TVL is the value locked in liquidity pools that facilitate trading on decentralized exchanges) grew 7.95% in 24 hrs and 3178% in 1 month. This is a tremendous strong growth!*

The 2nd Place is for SushiSwap which saw a 1.87% drop in TVL over 24 hours. Sushiswap's 1 month growth is 1289%, and RocketSwap + other decentralized exchanges (dexes) saw double-digit 1-day TVL growth.

BaseSwap is gaining momentum and ranks 1st among lesser-known dexes, but still, when compared to giant ones, BaseSwap TVL is relatively small ($19M), despite the traction. For reference, Dexes like Uniswap and PancakeSwap have TVLs in $billions! C

Implications

  • For LPs (liquidity providers) in its pools, the small size means less potential fees compared to bigger dexes. However, early LPs could get higher APYs. The average APY on BaseSwap is 31%. (last checked 8/8/203).

  • As a new protocol, it likely offers more attractive yields to early users. The impressive 1-month growth shows traction and adoption. But continued growth needs to be monitored.

  • For borrowers, there is likely less liquidity for borrowing versus more established protocols. Lending rates might be unstable.

In short, despite ranking 1st, Baseswap is small compared to giants like Uniswap in terms of size. It has less liquidity, less volume, and thus it's less efficient. However, early adopters can still benefit from higher yields and incentives as the Dex matures and growth accelerates. Show Less

 8
2024 Cyrator - Crypto Research Community

Disclaimer: The content presented on this website, including any analyses, reviews, and ratings, is provided for informational purposes only and should not be considered financial advice. Cyrator does not endorse or recommend any financial transactions or investments based on the information available on this platform. Visitors to this site should perform their own due diligence and consult with a professional financial advisor before making any investment decisions. Cyrator is not liable for any actions taken, financial or otherwise, based on information or links from this website.