Coinbase's layer-2 blockchain Base (BASE)

Aerodrome, the largest decentralised exchange (DEX) in the Base ecosystem, a layer-2 network led by Coinbase, will completely overhaul its liquidity allocation method in July.

According to a recent CoinDesk report, Aerodrome developer Dromos Labs will replace the existing weekly voting system with “Predictive Allocation”. The current system has a structure that concentrates liquidity incentives on pools that have already generated large fees, limiting it by relying on past performance. The new mechanism is designed so participants allocate capital by predicting in advance where liquidity will be needed. The more accurate the prediction, the more of the revenue generated in that market they take.

Dromos Labs founder Alex Cutler (알렉스 커틀러) said, “If automated market makers (AMMs) answered the question, ‘What should the asset price be now?’, predictive allocation answers the question, ‘Where should capital go?’.”

CoinDesk said the concept of predictive allocation began in prediction markets, but differs from existing prediction markets in that participants do not stop at simply betting on outcomes. It said allocating incentives to a specific pool itself creates liquidity in that market.

Dromos expects this mechanism to attract new types of participants such as professional trading firms and AI agents.

Cutler said the long-term goal is for Aerodrome to occupy in spot markets the position Hyperliquid holds in perpetual futures markets.

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#Aerodrome #Base #Coinbase #Dromos Labs #Predictive Allocation
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