The Balancer Protocol has unleashed arguably the most innovative AMM product, its Balancer V2. This product, which was a year in the making, takes Balancer V1 as its backbone and improves on it.
Balancer Finance is an AMM, an automated market maker, which removes the need for portfolio managers, by using algorithms to automatically price the markets and thus give liquidity providers the ultimate in balanced portfolios. The algorithm works in collaboration with traders who monitor and optimize the users’ portfolios in return for a fee.
Here are the main features of Balancer V2:
New trading and liquidity interface at app.balancer.fi
The interface, which was developed by Balancer Labs shares streaming data on its dashboard. The Balancer Protocol is open-source and can be accessed through a variety of platforms which include, 1inch, Matcha for V2 & Zerion, Zapper, PieDAO.
While the front end may appear to look the same, the back end is an entirely new proposition. Now trades are directed through the most efficient protocol available eg. when enough liquidity becomes available, trades are channeled from V1 through to V2 which gives much more efficient gas usage, thus resulting in better fees.
Rebrand of the website
The site has been rebranded to give a clear picture of what is happening within the Balancer protocol at any one time.
This self governing community has a group of executors responsible for all activities through the ecosystem. These include members from Ethereum, Snapshot, Gitcoin and Ocean Protocol.
V1 to V2 liquidity migration
For those who have built long standing pools on V1, they may stay there, although all new providers are advised to use V2 for their integrations because of the host of advantages (gas efficiency, minimal fees) they bring.
New BAL Liquidity Mining
Liquidity providers can use the V2 program to stake positions in return for enhanced APY, in the form of Balancer’s native BAL token. The pools work on a tier system, with each pool giving a different fixed reward weekly. The tiers are governed by Ballers, the community’s most active members.
Dynamic-fee pools powered by Gauntlet
Gauntlet, a simulation platform for creating financial models of blockchain protocols and applications, is working with Balancer to maximise yield output from the V2 pools, which means better yield for staking, and better fees for liquidity providers.
V2 Launch Partners
Balancer Protocol takes one step closer to becoming the ultimate liquidity provider for the DeFi scene with their new platform and back-end enhancements.