100% Boosted Pools — Powered by Aave V3
100% Boosted Pools offer liquidity providers the simplest solution to generating a diversified, risk-adjusted return on their assets from the two dominant yield-generating applications in DeFi — Decentralised Exchanges and Lending Markets — — in one position.
They are a passive, custom pool built on Balancer v3 that routes 100% of underlying Liquidity Providers (LP) liquidity to external yield markets to generate additional rewards while ensuring all liquidity remains available to facilitate and earn rewards from swaps.
Boost your earnings while simplifying your strategy, with Aave Boosted Pools.
Sustainable DeFi Yield Generation
Liquidity market supply interest rates and AMM swap fees are two of the largest capital markets for generating a sustainable yield on supplied assets within the onchain economy.
With over $38.2 billion in deposits, Aave is the largest decentralized liquidity protocol, allowing users to supply, borrow, swap, stake, and more, their assets, earning interest paid by borrowers. With Interest rates governed by a mathematical formula based on supply and borrowing demand, Aave is the leading financial example of peer-to-peer, permissionless loans that can be accessed by anyone, anywhere, at any time.
Decentralized Exchanges (DEXs) are powered by immutable smart contracts, known as Automated Market Makers that enable the permissionless trading of assets. Rather than swap liquidity being centralized and controlled by a single entity, AMMs democratize liquidity supply to any user who wishes to join a particular swap market and earn rewards for each swap that it facilitates. Decentralized Exchanges are the first financial example of peer-to-peer, permissionless swap markets that can be accessed by anyone, anywhere, at any time.
Boosted Pools #BuiltOnBalancer v3
Boosted Pools presents a novel solution focused on increasing the capital efficiency and reducing the complexity of earning yield for DeFi users. Boosted Pools deposits idle swap liquidity in a trusted third-party platform, providing passive LP exposure to an additional layer of sustainable yield. While the first iteration of Boosted Pools was constrained by the v2 vault architecture, the introduction of ERC20MultiToken and transient accounting in v3 enables gas-efficient 100% Boosted Pools which deposit ALL underlying liquidity into an external yield market.
To facilitate gas-efficient swaps to and from underlying tokens (ie: USDC), v3 introduces the concept of Buffers. A Buffer can be thought of as a simple two-token liquidity pool that holds a yield-bearing token (waUSDC) and its underlying counterpart (USDC). Any swap through a Boosted Pool will pass through the corresponding Buffer(s), and if it holds enough liquidity to facilitate the swap, no external call is required. With minimal liquidity, Buffers should facilitate most swaps through Boosted Pools, providing LPs with 100% exposure to yield-bearing assets while offering gas-efficient swaps.
Buffers also ensure that the Liquidity Providers only interact with the vanilla asset (USDC), enabling a passive and simple UX for users, with permissionless entry and exit at any time.
Powered by Aave
Balancer v3 Boosted Pools, developed in collaboration with Aave — the largest liquidity protocol in DeFi — set a new standard for capital efficiency and yield generation.
With over $38.2 billion in liquidity, Aave surpasses the size of thousands of US banks, boasting nearly five years of continuous attention to security, reliability, and risk management, solidifying its position as the cornerstone for risk-adjusted yield generation within the onchain economy.
Through Aave V3 Boosted Pools, users gain exposure to swap fees and enhanced rewards from the industry’s leading liquidity market. These pools are designed for users seeking granular, flexible, and efficient management of their assets.
For example, an Aave USDC | USDT Boosted pool allows users to earn swap fees from trades between USDC and USDT while also accruing supply interest rates: an average of 7.49% for USDC and 7.22% for USDT annually. Both swap and supply interest are accrued automatically within the position without any claims or management required.
Balancer v3’s 100% Boosted Pools redefine liquidity by seamlessly routing all LP capital to Aave, enabling gas-efficient, passive, and sustainable yield generation.
“By combining Aave’s and Balancer’s strengths, the new Aave V3 Boosted Pools empower users with enhanced capital efficiency and simplified yield generation. Users earn maximum returns, seamlessly access both supply and swap functions, and enjoy a smooth user experience with minimized gas costs.” — Stani Kulechov, Founder Aave Labs
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