Balancer Launches Stable Pools
Stable Pools aim to bring lower fees and improved value to traders
We are thrilled to announce the launch of stable pools on Balancer V2. Following the recent launch of Element.fi pools, stable pools make Balancer Protocol the first Automated Market Maker with at least three different types of pools: weighted, Element, and now stable pools. This highly anticipated launch takes full advantage of the Vault architecture of Balancer V2 through the use of batch swaps and internal balances.
Stable pools provide many benefits for traders and Liquidity Providers. These pools are designed specifically for assets that trade at a similar price which vastly increases capital efficiency for like-kind swaps. Traders enjoy tighter spreads and lower slippage while liquidity providers earn a competitive yield with very little impermanent loss.
The key advantage compared to other AMMs who only offer stable pools or traditional two token weighted pools is that Balancer stable pools are plugged into the same protocol as weighted pools. All the tokens are inside the same single vault, making trades much more efficient.
On Balancer, a trader can make trades that route through both pools at the same time with a very small increase in gas costs compared to a trade that routes through Curve and Uniswap for example. The magic of the Balancer V2 Vault is that these advantages continue to increase as more and more assets are supplied as liquidity which allows for more competitive trading opportunities.
Balancer Labs has created two initial stable pools for traders and LPs:
staBAL3-BTC — WBTC/renBTC/sBTC
staBAL3- USD — DAI/USDC/USDT
Balancer Protocol allows for automated portfolio management and providing liquidity turning the concept of an index fund on its head: instead of paying fees to portfolio managers, you collect fees from traders who rebalance your portfolio by following arbitrage opportunities. Developers leverage Balancer as a permissionless building block to innovate freely and create new treasury management systems. Balancer Lab’s mission is to become the primary source of DeFi liquidity by providing the most flexible and powerful platform for asset management and decentralized exchange.