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=== Pool Types === | === Pool Types === | ||
* Weighted Pools - A generalization of the xy=k constant product invariant which allows for more than two tokens at custom asset weightings. | * '''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. | * '''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. | * '''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. | * '''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. | * '''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. | * '''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:== | ==Sources:== | ||