Balancer v3 is Now Live on Arbitrum
Balancer v3 is officially live on Arbitrum, bringing a more capital-efficient and composable liquidity layer to one of DeFi’s most scalable ecosystems. This expansion enhances Balancer’s capabilities with lower transaction costs, faster execution, and key integrations across the Arbitrum ecosystem.
The upgrade introduces novel innovations, including custom AMMs, 100% Boosted Pools, and the addition of Hooks, empowering developers to effortlessly create tailored liquidity solutions.
With Balancer v3, liquidity providers, traders, and builders gain access to a flexible, efficient framework designed to push the limits of simplified yield generation.
A New Era of AMMs
With over $1 billion in assets 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 foundation, making it easier for developers and protocols to build custom liquidity solutions while improving efficiency throughout the ecosystem.
At its core, v3 introduces a revamped architecture that moves key design elements from the pool to the vault, simplifying complexity and enhancing the developer experience. This allows builders to focus on innovation without getting bogged down by low-level engineering tasks.
Boosted Pools: Maximizing Capital Efficiency
Balancer v3 introduces 100% Boosted Pools — a custom pool type designed to optimize returns for LPs by automating yield generation while ensuring capital remains available for trading.
Unlike traditional pools where assets sit idle, Boosted Pools route liquidity into external lending markets, earning additional yield without requiring active management from LPs. This enhances capital efficiency, driving higher returns while maintaining deep on-chain liquidity for seamless swaps.
By embedding Boosted Pools as a core feature on Arbitrum, Balancer v3 delivers a sustainable, scalable approach to passive yield generation.
Hooks: Expanding Liquidity Functionality
Balancer v3 also introduces Hooks, a powerful framework that enables developers to extend and customize pool functionality at key points in its lifecycle. This innovation unlocks new possibilities for liquidity management, automated strategies, risk controls, and a wide range of other use cases, allowing builders to design more adaptable and efficient AMMs.
For example, the StableSurge Hook, developed by Balancer Labs, automatically adjusts swap fees to maintain stable-asset pegs during periods of market volatility, ensuring more robust and resilient liquidity conditions.
As more developers explore the possibilities enabled by Hooks, Balancer v3 on Arbitrum will serve as the foundation for next-generation AMM design and tailored liquidity solutions.
Arbitrum Expansion
The launch of Balancer v3 on Arbitrum marks a strategic expansion aimed at enhancing liquidity infrastructure within one of DeFi’s most scalable Layer 2 ecosystems. Developed in collaboration with the Arbitrum Foundation, this deployment underscores a shared commitment to capital efficiency and decentralized market-making.
With Arbitrum’s low fees and high-speed execution, Balancer’s technology — Boosted Pools, Hooks, custom AMMs, and deep protocol integrations — can operate at peak efficiency.
This rollout further cements Arbitrum’s position as a DeFi hub, supporting stablecoin swaps, lending markets, and the next generation of on-chain financial applications.
Key Partnerships & Integrations
As Balancer v3 expands on Arbitrum, several key partnerships will drive deeper liquidity and enhanced yield opportunities for LPs.
Over the next few weeks, multiple pools and incentive programs will go live, reinforcing Balancer’s role as a core liquidity hub on Arbitrum:
Aave v3 | Boosted Lending Liquidity
Balancer Boosted Pools integrate with Aave, enabling LPs to earn both swap fees and lending interest from idle liquidity — maximizing capital efficiency with seamless passive yield.
Lido | Staked ETH Liquidity
Balancer v3 deepens wstETH liquidity on Arbitrum, unlocking new opportunities for ETH stakers. Pools like wstETH/wETH, wstETH/rsETH, and wstETH/ezETH will be Aave Boosted, enhancing LP yields while maintaining deep staked ETH liquidity.
USDX, Treehouse, and YieldFi | Stablecoin Liquidity
Balancer is integrating with USDX, Treehouse, and YieldFi to improve stablecoin swap efficiency — ensuring tight spreads and deep liquidity for stable assets on Arbitrum.
While Boosted Pools generate sustainable yields through lending market integrations, veBAL gauges (launching in the coming weeks) will allow governance to direct emissions to key liquidity pairs, deepening markets and optimizing LP rewards.
Additionally, the Balancer DAO will bootstrap key pools for the first six weeks, offering initial incentives on Arbitrum. These will be complemented by external incentives from integrated protocols, further enhancing yield opportunities for LPs.
A Foundation for the Future
By combining customizable AMMs, Boosted Pools, and Hooks, Balancer v3 offers a flexible, capital-efficient framework that aligns LP incentives with DeFi applications and lending markets.
With deep integrations across protocols like Aave, Lido, and emerging stablecoin ecosystems, Balancer v3 is positioned to serve as a key liquidity hub for DeFi on Arbitrum.
The next era of automated market-making starts now.
