Coinbase’s Base Layer 2 has exploded onto the DeFi scene, rapidly cementing itself as a go-to destination for builders, traders, and liquidity providers hungry for speed, low fees, and blue-chip security. If you’re looking to get serious about yield farming, swapping, or decentralized lending on Base, it’s crucial to know which protocols are truly leading the pack. Let’s break down the top DApps and protocols currently dominating Base’s DeFi ecosystem, backed by real data and on-chain momentum.
The Power Players: Top 7 DeFi Protocols on Base
While dozens of projects are building on Base, seven stand out for their innovation, user traction, and capital efficiency. These protocols aren’t just surviving, they’re thriving with hundreds of millions in total value locked (TVL) and surging daily volumes.
Top 7 DeFi DApps & Protocols on Base Layer 2
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Aerodrome Finance (AERO): The primary DEX and liquidity hub on Base, Aerodrome boasts over $600 million TVL (45% of Base’s total). It offers efficient swaps, yield farming, and veAERO governance, making it a cornerstone of Base’s DeFi ecosystem.
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Uniswap v3 (Base): The world’s leading automated market maker (AMM) brings deep liquidity and efficient trading to Base. Uniswap v3’s concentrated liquidity model enables lower slippage and better yields for LPs on the Base network.
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BaseSwap: A fast-growing native DEX on Base, BaseSwap stands out with attractive yields—over 150% on assets like cbETH, ETH, and USDC. It’s quickly become one of the main DeFi projects by TVL and user activity.
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Compound v3 (Base): The Base deployment of Compound’s third iteration, offering streamlined lending and borrowing for blue-chip assets. Compound v3 focuses on capital efficiency and risk management, supporting seamless DeFi lending on Base.
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Balancer (Base): This automated portfolio manager and DEX brings customizable liquidity pools to Base. Balancer’s flexible pools and smart order routing enable innovative DeFi strategies for both traders and liquidity providers.
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Moonwell: A secure, open lending and borrowing protocol, Moonwell’s Base deployment provides users with robust DeFi money market tools, supporting popular assets and integrating strong risk controls and governance.
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SushiSwap (Base): The iconic multi-chain DEX is live on Base, offering swaps, liquidity provision, and yield farming. SushiSwap’s presence brings additional depth and choice to Base’s DeFi landscape.
Aerodrome Finance: The Liquidity Engine of Base
Aerodrome Finance is the undisputed liquidity kingpin on Base. Launched in August 2023 and modeled after Velodrome’s veToken system, Aerodrome aligns incentives across traders, LPs, and partner protocols through veAERO governance. As of May 2024, Aerodrome commands over $600 million in TVL, representing a staggering 45% of all assets locked on Base. This protocol offers seamless token swaps, deep liquidity pools, and robust yield farming opportunities that have made it the backbone for new projects launching on Base.
What sets Aerodrome apart? Its dynamic emissions model rewards active participants while empowering DAOs to direct incentives where they matter most. For anyone serious about maximizing yield or bootstrapping liquidity for new tokens on Base, Aerodrome is simply non-negotiable.
Uniswap v3 (Base): The Cross-Chain Liquidity Standard
You can’t talk about DEX dominance without mentioning Uniswap v3. Its deployment to Base brings concentrated liquidity pools, letting LPs target specific price ranges for capital efficiency that blows traditional AMMs out of the water. Uniswap v3 is a magnet for both seasoned DeFi whales and retail users seeking tight slippage and deep order books across ETH pairs.
The protocol’s integration with major wallets and its proven security record mean it continues to attract high-volume traders migrating from Ethereum mainnet or other L2s to take advantage of Base’s ultra-low fees. For new tokens eyeing rapid price discovery or established projects seeking arbitrage opportunities across chains, Uniswap v3 remains a must-watch powerhouse.
BaseSwap: Native Yields and Rapid Growth
BaseSwap isn’t just another DEX, it’s quickly become one of the primary destinations for native yield seekers on Coinbase’s Layer 2. Offering eye-popping APRs (often exceeding 150% on assets like cbETH, ETH, and USDC), BaseSwap has attracted a flood of users eager to maximize returns while minimizing transaction costs. Its smooth UI/UX makes onboarding easy even for newcomers migrating from Ethereum or other L1s.
The secret sauce? Aggressive farm incentives paired with frequent new pool launches keep capital sticky while maintaining high trading volumes. For early adopters who want exposure to both blue-chip assets and emerging memecoins within the same platform, BaseSwap delivers flexibility without sacrificing security.
Lending and Leverage: Compound v3 (Base) and Moonwell
If you’re looking beyond swaps into lending markets or leveraged strategies, Compound v3 (Base) brings its battle-tested protocol architecture straight to this next-gen L2 environment. Users can supply collateral like ETH or stablecoins to earn competitive yields, or borrow against their positions with confidence thanks to Compound’s robust risk management systems.
Moonwell, meanwhile, carves out its own niche by focusing heavily on user-centric features like transparent governance via WELL tokens and innovative safety modules that protect lenders from volatility-induced liquidations. Together these two platforms anchor lending activity across all major asset classes available natively on Base.
Balancer (Base): Automated Portfolio Management and Custom Pools
For DeFi users who want more than simple swaps or lending, Balancer (Base) brings sophisticated portfolio management tools right onto Coinbase’s Layer 2. Balancer’s signature feature is its customizable weighted pools, which allow liquidity providers to create and manage their own index-like baskets of tokens. This flexibility lets you earn trading fees while maintaining your preferred asset allocations, think of it as a self-balancing ETF, but on-chain and composable with other DeFi primitives.
On Base, Balancer is quickly gaining traction among DAOs and advanced yield strategists looking to optimize risk-adjusted returns. With the ability to support multi-asset pools and dynamic fee structures, Balancer is ideal for both passive investors and active managers seeking edge in a competitive DeFi landscape.
SushiSwap (Base): Community-Driven DEX Innovation
SushiSwap (Base) continues its legacy as a community-first decentralized exchange by bringing its popular AMM model to the Base network. SushiSwap’s presence on Base means users get access not only to efficient swaps but also to unique features like Onsen farm incentives, cross-chain token listings, and an ever-evolving menu of DeFi integrations. Its open-source ethos has led to rapid experimentation, expect everything from NFT marketplaces to launchpad events popping up within the Sushi ecosystem on Base.
SushiSwap’s collaborative approach makes it a hub for builders and users alike who want more control over governance, fee distribution, and new feature rollouts. For anyone betting on grassroots innovation in DeFi, Sushi’s deployment to Base is a bullish signal that community-driven protocols remain core to the L2 narrative.
Moonwell: Accessible Lending With Safety at Its Core
Moonwell deserves special mention for its relentless focus on security and user empowerment in the lending space. Designed with transparent governance mechanisms via WELL tokens, Moonwell incentivizes responsible participation while providing robust protection against market volatility. Its safety modules continually monitor protocol health so lenders can earn yields with peace of mind, even during periods of high price swings or unexpected black swan events.
The protocol’s rapid growth on Base underscores rising demand for trusted lending solutions tailored specifically for L2 environments. Whether you’re a conservative saver or an aggressive borrower chasing higher APYs, Moonwell’s risk controls make it a standout choice within the expanding Base DeFi toolkit.
Why These Seven Protocols Matter Right Now
The explosive rise of these seven protocols, Aerodrome Finance, Uniswap v3 (Base), BaseSwap, Compound v3 (Base), Balancer (Base), Moonwell, and SushiSwap (Base): is no accident. Each brings proven infrastructure from Ethereum mainnet or other L2s while leveraging Base’s speed and affordability to push boundaries further. Their combined TVL dominance signals real user adoption rather than speculative hype: capital flows where utility thrives.
For traders chasing alpha, these platforms offer deep liquidity pools and innovative incentive structures that keep yields competitive even as markets evolve. For builders launching new tokens or dApps on Base, they provide the reliable plumbing needed for seamless trading, lending, farming, or portfolio management, all underpinned by strong security guarantees.
The Next Phase: Composability and Layer 2 Synergy
The most exciting aspect? The synergy between these protocols is only just beginning. As composability increases across Base DApps, think flash loans from Compound v3 routed into Balancer pools or yield aggregation strategies spanning Aerodrome and SushiSwap, the ecosystem becomes exponentially more powerful for both end-users and developers.
If you’re ready to explore what next-gen DeFi looks like at scale, with lightning-fast transactions that won’t drain your wallet, now is the time to dive into these leading protocols on Coinbase’s Layer 2 solution. Watch closely as TVL milestones are shattered week after week; this is where innovation meets real adoption.
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