Balancer’s new MetaStable Pools are designed to facilitate wrapped asset swaps


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Automated Market Maker (AMM) and DeFi-Protokoll (DeFi) Balancer announced on Monday that it has partnered with DAO-based staking platform Lido to introduce a MetaStable pool incentive program.

MetaStable Pools are liquidity pools specifically designed to work with highly correlated (but not tightly tied) tokens, such as packaged assets. Users can create swaps between MetaStable pools and assets integrated with other liquidity pools while benefiting from cheaper swap prices and eliminating the need for individual swap-specific stable pools. They will also prevent the dilution of liquidity from existing pools and increase the maximum trading amounts, according to the press release.

The first pool listing of Staked Ether (stETH) and Wrapped Staked Ether (wstETH) aims to provide liquidity to stakers in the Ethereum network. The pool is sponsored by LDO and BAL rewards of 2500 BAL per week and an additional 25,000 LIDO per week in the first month. The first distribution should take place on August 24th via the claims portal Balancer.

Back in July, Balancer introduced stable pools with narrower spreads and less slippage than the other pools on the platform. This update made Balancer the only automated market maker with 3 different types of liquidity pools: weighted, elementary and stable.

Earlier this month, the CEO of Unstoppable Domains predicted that the stablecoin market would hit $ 1K by 2025 – or possibly even sooner. However, he stressed that the proliferation of stablecoins could lead to volatility concerns and additional questions about regulatory uncertainty of tied assets.