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Difference between revisions of "Balancer"
Added the different pool types
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The team behind the Balancer Protocol (Balancer Labs) has been in the DeFi space for several years and started Balancer as a research project in early 2018<ref>https://www.kraken.com/en-gb/learn/what-is-balancer-bal</ref>. The company has around 30 employees. | The team behind the Balancer Protocol (Balancer Labs) has been in the DeFi space for several years and started Balancer as a research project in early 2018<ref>https://www.kraken.com/en-gb/learn/what-is-balancer-bal</ref>. The company has around 30 employees. | ||
The protocol has its own governance token BAL which has a veModel similar to [[Curve Finance]]. | The protocol has its own governance token BAL which has a veModel similar to [[Curve Finance]] , with the exception that users are locking 80/20 BAL/WETH BPT instead of just BAL. | ||
== Chains == | == Chains == | ||
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Additionally, there is a friendly fork on Fantom which was approved by the Balancer DAO<ref>https://vote.balancer.fi/#/proposal/0x95db8e797145ad590b467f8dbecb23404c25c2a7090aa8a8d65428ad9f7373fc</ref>. | Additionally, there is a friendly fork on Fantom which was approved by the Balancer DAO<ref>https://vote.balancer.fi/#/proposal/0x95db8e797145ad590b467f8dbecb23404c25c2a7090aa8a8d65428ad9f7373fc</ref>. | ||
== Tech== | |||
Balancer V2 is a generalized AMM that separates pool logic from token management and accounting. All assets in Balancer pools are handled by a single contract, the [https://etherscan.io/address/0xba12222222228d8ba445958a75a0704d566bf2c8 Balancer Vault]. | |||
== Sources: == | === Pool Types === | ||
* Weighted Pools - A generalization of the xy=k constant product invariant which allows for more than two tokens at custom asset weightings. | |||
* Stable Pools - Designed for assets that trade at near parity, uses the stableswap invariant popularized by Curve. | |||
* Liquidity Bootstrapping Pools (LBP's) - An extension of weighted pools, LBP's dynamically adjust asset weightings over a period of time to facilitate price discovery for token launches. There is no Balancer UI for LBP's, nor are any LBP's run by Balancer. Instead, independent projects such as [https://copperlaunch.com/ Copperlaunch] or Prime Launch handle the user interface. | |||
* Metastable Pools - Facilitates trades between assets that trade at a known exchange rate. An example would be the [https://app.balancer.fi/#/pool/0x32296969ef14eb0c6d29669c550d4a0449130230000200000000000000000080 wstETH/WETH pool] on Ethereum mainnet. | |||
* Boosted pools - An innovative pool type that utilizes nested BPT to enable a portion of the pool's liquidity to be in yield bearing strategies, such as AAVE or Yearn. There is currently an AAVE stable boosted pool on mainnet that earns an additional 2-4% organic yield from AAVE while still having the base tokens to facilitate trading without the need to route through AAVE. More info in the [https://docs.balancer.fi/products/balancer-pools/boosted-pools docs], or [https://beethovenxio.medium.com/boosted-pools-the-future-of-liquidity-provision-reimagined-7f99113ab2a2 this great article] by Beethoven X, the aforementioned friendly fork on Fantom that heavily utilizes Boosted pools in their strategy. | |||
* Custom Pools - Anyone can tap into the Balancer Vault and build a custom pool type that uses any invariant that controls how assets in the pool relate to one another. An example would be Element Finance's [https://docs.element.fi/element/element-smart-contracts/custom-balancer-curve/convergent-curve-pool Convergent Curve Pool] which facilitates trades for assets that converge in value over time. | |||
==Sources:== | |||
<references /> | <references /> | ||
[[Category:DEX]] | [[Category:DEX]] | ||
[[Category:Protocols]] | [[Category:Protocols]] | ||