Dissecting the Balancer V2 protocol (Part 1)
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This was first published on substack, make sure to follow 0xkowloon for more protocol deep dives.
Balancer protocol is an automated portfolio manager, liquidity provider and price sensor. Liquidity providers who want to earn trading fees and rebalance their portfolios can deposit their assets into a balancer pool. Arbitrageurs help liquidity providers to rebalance their portfolios by trading against the pools’ assets.