Balancer launches stable pools for like-kind swaps
Balancer launches stable pools for similar-kind swaps
The new feature allows traders to tap into pools of assets that trade at similar price levels. Balancer claims to be the first automated market maker to offer stable pools.
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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.
Source: https://cointelegraph.com/news/balancer-launches-stable-pools-for-like-kind-swaps
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