How to Become the Layer 2 Yield Champion?

Base is the most profitable platform in the Ethereum Layer 2 network, with daily earnings typically exceeding the total of other top Rollup projects. In the past six months, Base's average daily earnings reached $185,000, far surpassing the $55,000 of the second-ranked Arbitrum.

The main driving force behind Base's economic activities is its transaction ordering mechanism and decentralized exchange (DEX) activities. Base's ordering mechanism is similar to the operational model of logistics companies, determining priority based on the submission time and fees of transactions, forming a dynamic auction market.

Base adopts a fee model similar to Ethereum's EIP-1559, which includes a base fee and an optional priority fee. The sequencer prioritizes transactions with the highest priority fee per unit of Gas, ensuring the maximum efficiency of computational resources. This contrasts with Arbitrum's "first-come, first-served" model.

In the past six months, Base has accounted for 64% of the total revenue of the top Ethereum L2 networks. Among them, priority fees are the main source of revenue, accounting for 86.1% of daily average revenue. The contribution of priority fees at the top block positions is particularly significant, with the top 10 positions contributing 50%-80% of daily revenue.

The recently implemented Flashblocks technology has further improved the transaction processing speed of Base by introducing "sub-blocks", making the user experience smoother.

The DEX activities on Base are very active, accounting for 50%-65% of the DEX trading volume on the L2 network. DEX trading contributes 50%-70% of the priority fee income for Base, which is an important reason for its high returns.

Overall, Base's EIP-1559 style fee model transforms block space competition into an efficient economic auction, effectively capturing the value of competitive transactions like MEV, which is a key factor in its becoming the Layer 2 yield champion.