Balancer, a popular automated market place maker for cryptocurrencies, has launched a new protocol feature designed to lower fees and amend the trading execution for similar-kind swaps.

Stable pools "are designed specifically for avails that trade at a similar toll," wrote Fernando Martinelli, the co-founder and CEO of Balancer Labs. As such, the pools increase capital efficiency for like-kind swaps, thereby offering traders tighter spreads and lower slippage. Liquidity providers, meanwhile, accept the opportunity to earn a competitive yield.

Martinelli explained that, unlike traditional weighted pools, all tokens within the Balancer stable pools are independent in a single vault:

"On Balancer, a trader tin can brand trades that route through both pools at the same time with a very small increment in gas costs compared to a trade that routes through Curve and Uniswap for instance."

With the launch of stable pools, Balancer now has at to the lowest degree three different types of pools — the other 2 being weighted pools and the Element Finance integration that was introduced in April of this year.

Balancer Labs has raised tens of millions of dollars from venture funds seeking long-term exposure to the decentralized finance, or DeFi, market. Some of the most prominent VC investors in Balancer include Three Arrows Majuscule, Blockchain Upper-case letter, LongHash Ventures and Fenbushi Capital.

Related: VCs back Balancer with $24.25M investment

As Cointelegraph reported, Balancer launched version 2 of its protocol in May of this year, promising faster speed and improved liquidity. The upgrade resulted in a significant reduction in gas costs, specially for internal balances.