Ecosystem

Liquidity provision on Base

By Surfista Crypto · Reviewed by Evan Luthra · Updated

Base is a layer-2 (L2) network built on Ethereum and incubated by Coinbase, with fast, low-cost transactions. It is where Pool Party automates liquidity provision.

The Base liquidity stackEthereum settles the Base layer 2, Aerodrome is the liquidity hub on Base, and Pool Party automates liquidity provision on top.Pool PartyAutomated liquidity provision, self-custodialAerodromeThe main liquidity hub (DEX) on BaseBase (Layer 2)Low fees, fast, incubated by CoinbaseEthereum (Layer 1)Security and final settlementbuilds onsettles to
The Base liquidity stack

What Base is

Base is a layer 2 (L2) on Ethereum: a network that processes transactions more cheaply and quickly, then settles the result on Ethereum mainnet (layer 1), inheriting its security. It was incubated by Coinbase and built on the OP Stack from Optimism. For anyone using DeFi, the practical effect is cheap gas: moving funds and adjusting positions costs a fraction of what it would on Ethereum.

Why Base matters for liquidity

Providing liquidity and managing concentrated liquidity means rebalancing, and every adjustment pays gas. On an expensive chain that eats the return. On Base, low cost makes active liquidity management viable, which is why Pool Party runs automated liquidity provision there.

Aerodrome, the liquidity hub of Base

Much of the ecosystem liquidity sits on Aerodrome Finance, the main automated market maker (AMM) on the chain. It offers stable and volatile pools, plus concentrated liquidity through Slipstream. If you want to actually put this into practice, the next step is the walkthrough: how to provide liquidity on Aerodrome.

How Pool Party fits

Pool Party automates liquidity provision on Base, routing funds into Aerodrome strategies with self-custody: your money stays in your wallet until it enters a strategy contract you can verify on BaseScan. Launch the app.

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Frequently asked questions

What is the Base chain?
Base is a layer-2 (L2) network built on Ethereum and incubated by Coinbase, using Optimism OP Stack technology. It inherits Ethereum security and settles transactions in batches, so it is faster and far cheaper to use than Ethereum mainnet.
Why is DeFi cheaper on Base?
As an L2, Base processes transactions off Ethereum mainnet and posts the result back in batches. That spreads the cost across many transactions, so each swap, deposit or rebalance pays a fraction of the gas it would on Ethereum.
What is the main DEX on Base?
Aerodrome Finance is the main liquidity hub on Base, an automated market maker (AMM) where much of the ecosystem liquidity concentrates. It offers stable and volatile pools plus concentrated liquidity through its Slipstream product.
Can I provide liquidity on Base without giving up custody?
Yes. You connect a non-custodial wallet, choose a pool, and your funds stay yours the whole time. Pool Party automates liquidity provision on Base while keeping self-custody, so your assets are yours until they enter a strategy contract you can verify on-chain.