Research Summary
This report discusses the launch of Aerodrome on Base by the team behind Velodrome, its success, and its impact on the DeFi ecosystem. It also covers the fluctuations in the cryptocurrency market, the potential for a “Base season,” and the introduction of Fren Pet, a blockchain-based game.
Key Takeaways
Aerodrome’s Launch and Success
- Aerodrome’s Launch: The team behind Velodrome launched Aerodrome on Base, using the Solidly DEX model, which directs LP fees to a veToken and compensates LPs with a generous emission schedule.
- Initial Success: Aerodrome achieved significant success, attracting over $200m in TVL in a few days and becoming the No.1 DEX on Base by TVL.
- Token Performance: The token price performance of Aerodrome has leveled off after initially strong price action.
Cryptocurrency Market Fluctuations
- Market Volatility: The report mentions a brief pulse in the “shitcoin” market, with the on-chain index, specifically RLB and $BITCOIN, performing well.
- Micro Cap Coins: Signs of life were observed in micro cap coins, which are often seen as a gauge for risk appetite in the market.
Potential for a “Base Season”
- Base Season: The report suggests a potential “Base season,” where capital will flow further down the risk curve when market conditions are right.
- Capital Flow: The report notes that significant capital has been bridged over to Base, with the official Base portal address on mainnet holding $211m in ETH.
Introduction of Fren Pet
- Fren Pet: A tamagotchi-style on-chain game, Fren Pet, was launched on Base, offering a novel concept and gameplay.
- Gameplay: Players can buy $frenpet tokens, mint an ERC721 pet, buy items to feed their pet, level up, gain points, and fight others on the leaderboard.
Actionable Insights
- Monitor Aerodrome’s Performance: Given its initial success, it would be beneficial to keep an eye on Aerodrome’s performance and its impact on the DeFi ecosystem.
- Watch Market Conditions: With the potential for a “Base season,” it would be prudent to monitor market conditions and the flow of capital.
- Explore Blockchain Gaming: The launch of Fren Pet suggests a growing interest in blockchain-based gaming, which could present new opportunities.
