Balancer v3 has landed on BASE.
Why Base?
Base offers low fees, fast transactions, and a thriving developer ecosystem, making it the perfect environment for Balancer v3 to thrive. Its priority ordering mechanism enables innovations like the Priority Fee Router, redirecting MEV profits back to LPs for real yield.
By combining Base’s scalability with Balancer’s capital-efficient design, we’re unlocking new levels of performance and composability for DeFi.
A New Era of AMMs
With over $1 billion in assets managed across multiple pool types in Balancer v2, Balancer has established itself as a leading platform for AMM experimentation and innovation.
Balancer v3 builds on this strong foundation, making it easier for developers and protocols to create custom liquidity solutions while enhancing efficiency throughout the ecosystem.
At its core, v3 features a restructured architecture that shifts key design elements from the pool to the vault, reducing complexity and allowing developers to focus on designing innovative AMM mechanisms without dealing with low-level engineering hurdles.
Introducing the Priority Fee Hook: Internalizing MEV for LPs
Balancer v3 on Base debuts the Priority Fee Router, an MEV internalization mechanism that redirects profits from MEV transactions back to liquidity providers (LPs).
Here’s how it works:
- Pools integrate the MEV Hook.
- High-priority transactions (typically MEV-related) pay an additional fee, known as an MEV tax.
- This tax is collected and redistributed to LPs, creating an extra source of yield.
- Regular transactions with low priority fees are unaffected, ensuring a seamless user experience.
By capturing value that would otherwise go to searchers or sequencers, the Priority Fee Router adds real yield for LPs, beyond swap fees and lending interest, enhancing the capital efficiency of liquidity provision on Base.
Boosted Pools: Maximizing Capital Efficiency
A standout feature of Balancer v3 on Base is the introduction of 100% Boosted Pools, designed to optimize yield generation while keeping liquidity fully available for swaps. Unlike traditional liquidity pools where assets often sit idle, Boosted Pools automatically deploy underlying assets into external lending markets like Aave, allowing liquidity providers to earn lending interest alongside swap fees
By embedding Boosted Pools into the Base ecosystem, Balancer v3 delivers a sustainable, capital-efficient model where liquidity works harder, combining swap fees, and lending interest into a single, optimized position.
Hooks: Expanding Liquidity Functionality
Hooks are a powerful framework that allows developers to extend and customize pool functionality at critical points in a pool’s lifecycle.
Hooks unlock new layers of flexibility within Balancer’s AMM design, enabling developers to adapt pools to specific needs. Whether it’s adjusting swap fees in response to market conditions or implementing custom logic to optimize capital efficiency, Hooks provides the tools to tailor liquidity behavior to evolving market demands.
A prime example is the StableSurge Hook, developed by Balancer Labs, which automatically adjusts swap fees to maintain stable asset pegs during periods of market volatility.
Learn more about StableSurge here.
In collaboration with Aave, the first LP using the StableSurge hook is now live on Base, featuring a GHO | USDC Boosted Pool.
Key Partnerships & Integrations
As Balancer v3 expands to Base, it brings with it a range of strategic partnerships designed to deepen liquidity and enhance yield opportunities for liquidity providers (LPs). These collaborations will play a crucial role in establishing Balancer as a core liquidity layer within the Base ecosystem.
The migration to v3 will focus on core pairs powered by Boosted Pools, integrating deeply with Base’s leading DeFi protocols:
- Aave + GHO | Boosted Lending Liquidity: Balancer’s Boosted Pools integrate seamlessly with Aave, enabling liquidity providers to earn both swap fees and lending interest. The inclusion of GHO as a key stablecoin expands these opportunities, offering efficient stablecoin swaps and enhanced yield potential.
- Lido & Rocket Pool | Staked ETH Liquidity: Pools featuring wstETH, rETH, and cbETH will migrate to v3, providing deep liquidity for staked ETH assets. Boosted strategies will ensure LPs earn sustainable yields while supporting the growing demand for liquid staking tokens on Base.
- Expanding DeFi Liquidity with Emerging Protocols: Integrations with innovative protocols like Spark (USDS) and Morpho, alongside strategic partners like Gauntlet, Seamless, Ionic, and Moonwell, will help optimize liquidity deployment, enhance risk management, and diversify yield opportunities across Balancer’s v3 ecosystem on Base.
To support the growth of Balancer v3 on Base, a range of incentive programs will be launched to attract and retain liquidity. While Boosted Pools inherently generate sustainable yield through lending market integrations — providing LPs with passive income from both swap fees and interest — additional mechanisms are in place to accelerate growth.
veBAL gauges will soon go live, enabling governance to direct emissions toward strategic liquidity pairs. This ensures incentives are aligned with ecosystem priorities, deepening key markets and maximizing rewards where they create the most impact.
In addition to Balancer DAO’s support, integrated protocols will be able to introduce external incentives, further enhancing yield opportunities for LPs. Expect targeted campaigns around core pools, strategic partnerships, and emerging DeFi integrations in the coming weeks.
A Foundation for the Future
The deployment of Balancer v3 on Base is more than just an upgrade — it’s a strategic leap towards building a more efficient, composable, and innovative DeFi infrastructure. By combining customizable AMMs, Boosted Pools, Hooks, and the novel Priority Fee Router, Balancer is redefining what’s possible for automated market-making in on-chain environments optimized for scalability.
Base’s rapid growth, low-cost transactions, and vibrant developer ecosystem make it the ideal environment for Balancer’s next evolution. Whether you’re a liquidity provider seeking optimized yield, a developer building the next DeFi primitive, or a trader looking for efficient execution, Balancer v3 on Base offers a flexible, capital-efficient framework designed to meet your needs.
With strong partnerships, sustainable yield mechanisms, and cutting-edge MEV internalization strategies, Balancer is positioned to be a core liquidity layer not just on Base, but across the broader DeFi landscape.
The future of on-chain liquidity starts here.
