TL;DR Arrakis Pro is deploying a module on Base’s top liquidity solution, Aerodrome. The move will help token issuers access Aerodrome’s capital efficiency benefits to optimize their Protocol Owned Liquidity.

Key Takeaways:

• Arrakis Pro is launching on Aerodrome. The launch marks our first deployment on an L2-native DEX.

• Arrakis Pro will run strategies that leverage Aerodrome’s concentrated liquidity feature to help teams manage their Protocol Owned Liquidity.

• Aerodrome has become Base’s top DEX because it optimizes for capital efficiency and our module will ensure more projects can access it to improve their returns.

Aerodrome has quickly become one of DeFi’s best-known DEXs. Since launching in August 2023, it’s climbed the ranks to become the top liquidity solution on Base, surpassing several early DeFi staples across various metrics on the network.

Aerodrome has achieved market dominance because it offers LPs meaningful capital efficiency benefits. As a result, Aerodrome has also nurtured one of DeFi’s strongest brands and communities, leading to greater exposure and more liquidity.

In the L2 ecosystem, the last few months have been particularly strong for Base, and that’s helped Aerodrome shine. The DEX’s volumes now frequently top leading solutions on mainnet with a fraction of the TVL.

One of Aerodrome’s key features is concentrated liquidity. That makes the solution appealing to us at Arrakis. As concentrated liquidity specialists, Arrakis Pro has built on some of DeFi’s most forward-thinking liquidity solutions to help teams manage their Protocol Owned Liquidity effectively.

To that end, we’re pleased to bring our liquidity management services to Aerodrome. We’re deploying a module on the Base-native DEX and we offer more details on how and why below.

Aerodrome’s rise is proof that DeFi never stands still and liquidity solutions are changing. This poses challenges for LPs. By building on Aerodrome, Arrakis Pro is helping teams adjust to the complexities of the ever-evolving onchain liquidity landscape.

How Aerodrome Became Base’s Top DEX

Aerodrome is the most liquid DEX on Base with ~$1 billion locked and daily spot volumes regularly topping $500 million. There are good reasons for this.

One reason for Aerodrome’s success is because it adopts an innovative design that rewards loyal users. Perhaps most notably, Aerodrome is a “MetaDEX” that uses a liquidity incentive mechanism with a veToken model. When LPs deposit liquidity on Aerodrome, they can earn AERO tokens, which enhances their capital efficiency.

When a token issuer deploys liquidity into our Aerodrome module, the module will accrue claimable AERO emissions. After we claim the rewards, the token issuer will be able to lock the tokens to receive veAERO. They can use the veAERO to vote on emission distributions and earn trading fees.

Similar to other leading DEXs, Aerodrome uses concentrated liquidity, wherein LPs choose the tick range to deploy liquidity to. When LPs open a position, their liquidity can move to a different tick as prices change.

Aerodrome’s rapid growth is further proof that the onchain liquidity landscape is changing. L2s are seeing dominant chain-native solutions emerge and LPs now have endless choices of pools to deploy to.

While the DEX space is fiercely competitive, Aerodrome is growing in popularity and we can imagine users will continue to benefit if Base’s liquidity keeps climbing. But these users face a challenge: concentrated liquidity is difficult to navigate.

Our deployment on Aerodrome comes as interest in the solution continues to grow. By leveraging our strategies, token issuers can ensure they achieve sufficient base liquidity depth and minimized price impact, while accruing AERO emissions.

Making Capital Efficient on L2

Arrakis Pro has helped 50+ projects concentrate their liquidity onchain in the most optimal way, including the likes of Across, ether.fi, Gnosis, and Stargate. Our Aerodrome launch marks our first deployment on Base, making our services accessible to a wider pool of users.

Arrakis Pro is built on a modular framework. This means teams can easily port their POL to new chains and DEXs. The Aerodrome launch marks a first for us but we look forward to extending our strategies to other L2-native DEXs in the future. Our Aerodrome module is live now and deployments will begin in early March.

Today’s launch is another step on our mission to help token issuers navigate the onchain liquidity landscape to improve their returns. To learn more about how we do this, read this Arrakis Pro explainer and follow us at the usual places for forthcoming news updates.