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balancer.md

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balancer


tl; dr

  • liquidity infrastructure

composable stable pools

  • contribute more than $640M to balancer's tvl
  • one of the many technical components of balancer's flexible amm framework and essential for token like stables or lsds
  • these pools are designed for assets that are either expected to consistently trade at near parity, or at a known exchange rate
  • pools use stable math, based on stableswap (populatized by curve finance)
  • reinforced by balancer's nested pool v2 infrastructure, metastable pools have a myriad of benefits compared to a standard pool 2: correlated token liquidity utilization, reduced liquidity fragmentation of like-assets, capital efficiency.
  • use cases include: bb-g-USD, wstETH, and bb-i-USD.
  • protocols like gearbox, lido, and idle continue to expand on the capabilities of metastable pools.
  • best assets are either pegged or correlated (e.g rETH and boosted pools like bb-g-USD).
  • token swaps can occur between any and all nested pools within balancer (e.g. aave boosted pools and rocket pool lsd eth).
  • each pool has a function known as a rate provider that updates tokens to the correct ratio any time a trade takes place. this function means that liquid staked yield flows to liquidity providers rather than arbers.

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