In this article, we will delve into the Base Ecosystem, highlighting 7 intriguing and essential Dapps available on it!
(know more about Base before reading: What is Base?Get to Know Everything about Coinbase’s L2 in 5 minutes!)
What is Base?
Base, Coinbase’s Layer 2 solution launched in August 2023, embodies the crypto giant’s vision to enhance global economic freedom by creating an open financial system. Operating on Optimism’s OP stack, Base serves not only as the hub for Coinbase’s on-chain products but also as an expansive development ecosystem aimed at mainstreaming crypto adoption.
Designed to be secure, cost-effective, and developer-friendly, Base supports over 150 protocols, fostering a comprehensive ecosystem that plans to progressively decentralize.
Furthermore, Base’s strategic partnership with Optimism’s development team, Op Labs, and the Optimism Collective, forms a key part of the Superchain initiative. This innovative multi-chain network aims to enhance interoperability and foster collective growth among various Layer 2 solutions.
By integrating Base into the Superchain, Coinbase plans to utilize its vast user base and array of on-chain products to drive the growth of this interconnected ecosystem. This involves contributing a portion of transaction fees to support public infrastructure, thereby advancing the joint development of decentralized platforms.
Leveraging these advantages, Base has rapidly gained traction across a wide range of Dapps. This article explores the Base Ecosystem, spotlighting the most intriguing and significant Dapps it hosts.
Top DApps Within the Base Ecosystem
Base is distinguished by its extensive DeFi landscape, enriched with a diverse range of projects including bridges, tools, and NFTs. This overview highlights the key projects that are spearheading innovation within the Base ecosystem:
Aerodrome
Aerodrome Finance is an automated market maker (AMM) built to anchor the liquidity landscape on Base, characterized by its liquidity incentives, vote-lock governance, and user-friendly design.
Users of Aerodrome primarily engage in the following activities:
- Swapping tokens on Base.
- Providing liquidity to earn $AERO token rewards.
- Locking their $AERO tokens to become veAERO voters, who can vote on the distribution of $AERO emissions for upcoming epochs. veAERO voters also receive a portion of the protocol’s trading fees as rewards.
Aerodrome currently reigns as the protocol with the highest TVL on Base, boasting an impressive TVL of 714 million.
Extra Finance
Extra Finance is a leveraged yield farming (LYF) protocol built within the Superchain ecosystem. It mainly offers users high-yield yield farming and lending services.
By leveraging up to 7x, users can deposit assets into various yield pools and craft customized yield strategies by freely combining options such as reinvest, market neutral, and long/short farming.
Reigning as the most popular farming protocol within the Superchain ecosystem, Extra Finance has amassed an impressive TVL of 107 million on Base.
Compound V3
Compound, the leading lending and borrowing protocol on Base, stands out as a seasoned DeFi protocol that continually evolves. It enables users to lend and borrow tokens, where they can earn interest on deposits or secure loans at competitive rates.
Currently on Base, Compound provides lending and borrowing services for USDC, USDbC, and ETH. With a TVL of $55 million, it leads all lending protocols on Base.
Cygnus Finance
Cygnus Finance is the RWA stablecoin protocol on Base, leveraging short-term U.S. Treasury bills to back its offerings. It stands out as the first to introduce both an interest-bearing stablecoin and a native RWA protocol on this platform.
At its core, Cygnus Finance issues cgUSD, a stablecoin that earns interest directly from U.S. Treasuries. This interest is shared with holders through a rebase mechanism, allowing cgUSD balances to grow as the underlying assets accrue value. This design not only enhances the asset’s stability but also enriches its holders by increasing the net asset value over time. Currently, the APR for cgUSD stands at approximately 5.3%.
Further expanding its utility, Cygnus Finance enables cgUSD to be wrapped into wcgUSD, facilitating seamless integration across various blockchain networks. This wrapped version maintains strict value alignment with cgUSD, ensuring consistent valuation and broad usability throughout the crypto ecosystem.
friend.tech
friend.tech is a decentralized social token-driven app built on Base that allows creators to monetize their content or expertise. Creators connect with their online community through tokenized attention, where a creator’s influence is represented by “Keys” (shares).
key features of friend.tech:
- Token-gated chats: Users can buy and sell “keys” that unlock access to private chat rooms and exclusive content from creators.
- Bonding curve: The price of keys is determined by a bonding curve, which ensures that the price of keys increases as more keys are purchased.
- Social tokens: Keys can be used to tip creators, participate in governance, and access other exclusive features.
By integrating social and investment elements, creators on friend.tech can monetize their content and expertise. Meanwhile, users gain access to exclusive content and experiences, and can even profit from buying and selling keys. This ingenious design has made friend.tech the most popular social dapp on Base in 2023, with a TVL that has already exceeded $35 million. In April of this year, the platform further enhanced its offerings with the launch of version 2.
Base Name Service
Base Name Service, as the name suggests, is a domain service operating on Base. Developed by LayerZero, users can register a .base domain by simply entering their desired domain name, choosing the registration period, and paying the fee in ETH. Additionally, it supports the creation of subdomains.
XY Finance
XY Finance is a cross-chain bridge aggregator that operates on 20 EVM chains. XY Finance’s user-centric approach allows for easy token swaps between different chains, ensuring the best route and optimal prices for users.
Through XY Finance, users can effortlessly transfer assets to Base and explore the diverse Dapps on the Base ecosystem. This article will conclude with a detailed guide on how to use XY Finance!
How to Bridge Tokens to Base?
As previously mentioned, XY Finance provides a seamless and efficient method for bridging assets to Base. Don’t wait any longer! Follow this simple guide to bridge tokens to Base now:
- Visit XY Finance and connect your Wallet.
- Select the network you want to transfer tokens from (Ethereum, Polygon, Arbitrum, Avalanche, Optimism + 15 others).
- Select the token you want to bridge from your network to Arbitrum and input the amount.
- Review and confirm the transaction. Your tokens will arrive in under 5 minutes.
(Encountering any problems while bridging? Check out our comprehensive tutorial.)
You’re all set! Start exploring the Base ecosystem now!
About XY Finance
XY Finance is a cross-chain interoperability protocol aggregating DEXs & Bridges. With the ultimate routing across multi-chains, borderless and seamless swapping is just one click away.
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