Balancer introduces stable pools for similar swaps


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Balancer, a popular automated cryptocurrency market maker, has introduced a new log feature designed to lower fees and improve trade execution for similar swaps.

Stable pools “are specifically designed for assets that trade at a similar price,” wrote Fernando Martinelli, co-founder and CEO of Balancer Labs. As such, the pools increase capital efficiency for similar swaps, thereby offering traders tighter spreads and lower slippage. Liquidity providers, on the other hand, have the ability to generate competitive returns.

Martinelli explained that unlike traditional weighted pools, all of the tokens in Balancer’s stable pools are contained in a single vault:

“On Balancer, a trader can conclude trades that lead through both pools at the same time, with a very small increase in gas costs compared to a trade that routes via Curve and Uniswap, for example.”

With the introduction of stable pools, Balancer now has at least three different types of pools – the other two are weighted pools and the Element Finance integration launched in April this year.

Balancer Labs has raised tens of millions of dollars from venture funds seeking long-term exposure to the decentralized financial market, or DeFi market. Balancer’s best-known VC investors include Three Arrows Capital, Blockchain Capital, LongHash Ventures, and Fenbushi Capital.

Connected: VCs are backing balancers with a $ 24.25 million investment

As reported by Cointelegraph, Balancer released version 2 of its protocol in May of this year, which promises faster speed and improved liquidity. The upgrade led to a significant reduction in gas costs, especially for internal balance sheets.