How to Find High-APR Liquidity Pools on Aerodrome (Base Network ) Defillama Guide

How to Find High-APR Liquidity Pools on Aerodrome (DEfillama LP Research Network Guide)

Introduction

Let’s talk about earning passive income with high-APR liquidity pools on Aerodrome, built on the Base Layer 2 Ethereum network. If you’re in the DeFi space looking for reliable yield farming opportunities, this guide is for you!

I’ve spent countless hours navigating different DeFi platforms, chasing high yields, and learning from my wins and losses. Aerodrome has caught my attention lately as a top-tier DEX on Base, and I want to share what I’ve learned so you can make smarter liquidity pool decisions and maximize your returns.

⚠ Disclaimer: None of this is financial advice. DeFi and crypto investments come with risks, including impermanent loss, scams, hacks, and private key mismanagement. Always do your own research and invest only what you can afford to lose.

Step 1: Use DeFiLlama to Research High-APR Liquidity Pools

The first step to finding high-yield liquidity pools is using DeFiLlama, a powerful tool for tracking total value locked (TVL) and yield opportunities across different blockchains.

Why Use DeFiLlama?

• Tracks TVL trends and overall market movement.

• Shows APR/APY rankings for different pools.

• Helps filter pools based on liquidity, reward structures, and risk.

Navigating DeFiLlama for Aerodrome Pools

1. Go to DeFiLlama and select the DeFi section.

2. Click on Yields to filter pools based on APR/APY.

3. Change the chain to Base Network (this filters results to Aerodrome and other Base DeFi protocols).

4. Look specifically at Aerodrome V1 pools for full-range liquidity opportunities.

Step 2: Setting Search Parameters for High-Yield Pools

When researching liquidity pools, I follow specific search criteria to filter out risky or low-liquidity pools. Here’s my checklist:

✅ Minimum TVL of $250,000 – Avoid low-liquidity pools to reduce the risk of being exit liquidity.

✅ Target APR between 20% - 1,000% – This filters out meme-token pools with unsustainable yields.

✅ Check 7-Day Impermanent Loss – Lower numbers indicate a more stable pool with reduced loss potential.

✅ Look at 30-Day APY Averages – This gives a better idea of long-term yield consistency.

Pro Tip: Sort pools by TVL to find the largest, most active ones. Pools with millions in liquidity are generally safer than small, newly launched pools.

Step 3: Evaluating Liquidity Pools on Aerodrome

Now that we have a list of promising pools, it’s time to analyze them on Aerodrome.

Key Metrics to Review in a Liquidity Pool

• TVL (Total Value Locked) – More liquidity means better stability and lower slippage.

• APR vs. Rewards APR – Some pools boost APR via rewards. Make sure rewards are in trusted assets (ETH, USDC, AERO) rather than risky tokens.

• Volume & Fees – Higher trading volume means more fee revenue for liquidity providers.

• Pool Balance – Check how much of each asset is in the pool to ensure balanced trading activity.

Examples of Strong Aerodrome Pools

Here are some high-APR pools I recently researched:

• USDC/AERO – A stablecoin and governance token pair.

• WBTC/USDC – Bitcoin exposure on the Base Network.

• WETH/cbbtc – A solid ETH-based liquidity position.

• Moonwell/WETH – A high-yielding pool with a trusted DeFi lending protocol.

Step 4: Exploring Concentrated Liquidity for Higher APRs

Aerodrome also offers concentrated liquidity pools, which allow LPs to set custom price ranges for their liquidity. This can result in significantly higher APRs but comes with higher risk and impermanent loss.

Finding the Best Concentrated Liquidity Pools

1. Navigate to the Aerodrome platform.

2. Filter by Concentrated Liquidity.

3. Look for narrow-range pools with high trading volume.

4. Compare APR across different positions.

🚨 Warning: Concentrated liquidity pools may show 2,000%+ APR, but this varies based on range width and trading activity. Always simulate your position with a small deposit first to understand real returns before committing larger capital.

Step 5: Best Practices for Farming on Aerodrome

✅ Do’s:

✔ Farm assets you believe in – Avoid pools with tokens you wouldn’t hold long-term. ✔ Start small – Test pools with $50-$100 before committing larger amounts. ✔ Monitor impermanent loss – Use DeFiLlama’s IL tracker to estimate potential losses. ✔ Reinvest strategically – Compound earnings into pools with stable returns.

❌ Don’ts:

❌ Avoid low-liquidity pools – Less than $100K TVL can make you exit liquidity. ❌ Don’t chase sky-high APRs blindly – Yields fluctuate and often drop quickly. ❌ Never use all your funds in one pool – Diversify across multiple pools and protocols.

Final Thoughts: Is Aerodrome a Good Yield Farming Opportunity?

✅ Yes! If you understand the risks and choose high-liquidity pools with assets you believe in, Aerodrome can be a great platform for passive income.

💬 What’s your favorite Aerodrome liquidity pool? Drop a comment below! Let’s discuss the best strategies for maximizing yield while minimizing risk.

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🚀 Until next time, happy yield farming!

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DISCLAIMER: The information contained herein is for entertainment and  informational purposes only and not to be construed as financial, legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies and defi poses considerable risk of capital loss. The speaker does not guarantee any particular outcome. © 2024 DAD DEFI SPACE