Balancer v3 is LIVE
“Balancer’s long-term success is intrinsically linked to the success of the protocols and products built on our platform.” — Fernando Martinelli, Balancer Co-Founder
Build great tech, generate real value, and they will come.
With over $1.1 billion in assets hosted across multiple pool types, Balancer v2 has earned its place as the leading platform for Automated Market Maker (AMM) experimentation and innovation. Now, with the release of v3, Balancer is set to solidif its role as the go-to base layer for custom pool innovation, fuelling the next generation of AMM design and driving the evolution of the on-chain economy.
AMMs Made Easy
Unlike other AMMs with fixed pool types, Balancer has always stood apart. By enabling experimentation and the complete reconstruction of pool designs, Balancer has empowered projects like Gyroscope, CoW Swap, and Xave to build novel, custom pool types, and have them seamlessly adopted by users seeking innovative ways to generate yield.
Balancer v3 takes this ethos to the next level, delivering a 10x improvement in developer experience (DX). By shifting core design elements from the pool to the vault, Balancer v3 simplifies the custom pool creation process. Developers now have the freedom to focus on pushing the boundaries of AMM innovation while relying on Balancer’s robust tech stack to drastically reduce engineering complexity.
In addition to custom pools, Balancer v3 introduces a hooks framework that allows developers to easily extend tried and trusted pool invariants, unlocking a brand-new design space for developers.
Custom Pool Types: Code Less, Build More
With repeated custom pool design patterns shifted into the vault, Balancer v3 ensures consistency across all pools removing sources of significant complexity from the pool contract. With v3, AMM developers can now utilize a tech stack that automates mundane, low-level development tasks, enabling them to focus exclusively on invariant innovation.
To further accelerate development, the Balancer DAO has built extensive resources, including:
This foundation empowers developers to focus on innovation, turning ideas into reality faster than ever before.
100% Boosted Pools: Passive Yield, Simplified
As a demonstration of v3’s capabilities, Balancer Labs has introduced 100% Boosted Pools. A passive, custom pool 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.
One position. One-click. 100% efficiency.
Boosted Pools are a testament to the power of Balancer v3, unlocking sustainable yield with unmatched simplicity.
For example, an Aave USDC | USDT Boosted pool allows users to earn swap fees from swaps between USDC and USDT while also accruing supply interest rates: an average rate of 7.49% for USDC and 7.22% for USDT annually.
“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
Beyond Boosted Pools: New Frontiers in AMM Design
Balancer v3 launches with E-CLPs — an asymmetric, customizable concentrated liquidity pool developed by the Gyroscope team. This pool lets liquidity providers enjoy concentrated liquidity benefits without managing active ranges. The successful migration of E-CLPs from Balancer v2 demonstrates how easily complex pool types can be integrated into v3.
QuantAMM is also launching Blockchain Traded Funds on Balancer v3 — a custom pool type functioning as a passive onchain fund product, creating a new class of financial instruments for liquidity providers.
Hooks on Balancer v3: Limitless Creativity
Balancer v3 introduces a hooks framework, allowing developers to extend pool functionality at various stages of its lifecycle. Hooks enable:
- Customized Pool Behavior: Tailor pool logic to implement specialized AMM strategies.
- Enhanced Liquidity Management: Introduce dynamic fee structures, yield strategies, and more.
- Expanded Design Space: Unlock new possibilities for financial innovation and user experiences.
Balancer Labs has deployed the StableSurge Hook to showcase this potential, which dynamically adjusts swap fees to protect stable-asset pegs during volatility. It uses a surge mechanism that increases swap fees when a pool’s token balance diverges significantly from its equilibrium, discouraging trades that exacerbate imbalance while rewarding liquidity providers with higher fees during volatile conditions.
All available hooks can be explored in the Balancer v3 Hooks Directory here.
Security First
Security has always been a priority for Balancer, and v3 exemplifies this commitment. The platform has undergone thorough audits by industry leaders, including Trail of Bits, Spearbit, and Certora, ensuring the highest standards of code quality and safety.
Deliver Real Value
Balancer v3’s refined fee model delivers significant advantages to both liquidity providers (LPs) and veBAL stakers, fostering sustainable growth and adoption. Yield fees for yield-bearing pools, including LSTs and boosted pools, have been reduced from 50% to 10%, resulting in a 407% increase in income for LPs. Simultaneously, veBAL stakers benefit from a larger share of revenue, with 82.5% of non-core pool fees and 12.5% of core pool fees redistributed directly to them. This represents a 46.7% increase in returns compared to v2. By aligning incentives and optimizing revenue distribution, Balancer v3 encourages migration, strengthens protocol sustainability, and reinforces its position as a leader in yield-bearing liquidity markets.
A Foundation for the Future
The AMM landscape is evolving rapidly, and the breadth of products that will emerge over the next few years is limitless. With Balancer v3, developers now have a robust and flexible platform to define the future of on-chain liquidity effortlessly.
Build great tech, generate real value, and they will come.
Balancer v3 is LIVE on Ethereum and Gnosis now.
AMMs Made Easy.
