The recently launched Base, a layer 2 network for Ethereum developed by Coinbase, already has several protocols “living” on it.
Among these, the top five by Total Value Locked (TVL) are: BaseSwap, Stargate, SushiSwap V3, RocketSwap Base, and Beefy, according to data from DeFillama.com, a DeFi project tracker.
Related: What Are Layer-1 And Layer-2 Blockchains?
Base, made public just yesterday, is designed to enhance Ethereum’s scalability by moving transactions from the main chain to a sidechain.
The network employs the rollup protocol to achieve this, compressing multiple transactions on the sidechain and then storing them on the main chain. This enables Base to process more transactions per second than Ethereum’s main network.
BaseSwap
The first protocol on the list is BaseSwap, with a TVL on Base of $29 million. This is a decentralized finance (DeFi) protocol operating on Ethereum, designed to facilitate token swapping and liquidity provision among various crypto assets.
Its primary aim is to empower users to capitalize on arbitrage opportunities and earn profits by adjusting exchange rates between stablecoins.
Stargate
In second place is Stargate, with a TVL on Base of $6 million. This platform enables interoperability among different blockchains through the implementation of the Inter-Blockchain Communication (IBC) standard, as per their website.
IBC facilitates communication and asset transfer between distinct independent networks within the Cosmos ecosystem, streamlining the creation of bridges between blockchains and fostering collaboration and value exchange across different networks.
SushiSwap
In third place by TVL is SushiSwap V3, with $5 million. This automated decentralized exchange (DEX) operates on the Ethereum network. SushiSwap V3 allows liquidity providers to customize price curves of liquidity pools. This means that market creators have greater control over how exchange rates adjust based on price ranges, potentially optimizing earnings.
RocketSwap Base
In fourth place is RocketSwap Base, with a TVL of $4.07 million. Its function is to facilitate the exchange of digital assets and provide liquidity services.
RocketSwap Base employs smart contracts and advanced algorithms to enable users to perform peer-to-peer (P2P) exchanges without relying on centralized intermediaries. Users can directly and swiftly trade digital assets like ERC-20 tokens. Moreover, the protocol enables participants to provide liquidity to various trading pairs, generating rewards in the form of fees and native ecosystem tokens.
Beefy
In fifth and final place on this list is Beefy, with $4 million. This protocol allows users to earn passive income from their cryptocurrencies. Beefy accomplishes this by offering a variety of investment strategies such as staking and lending. Thanks to its own smart contracts, the platform can automatically reinvest profits to enhance yield.
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