Balancer V3 collaborates with DeFi lending protocol Aave. Decentralised exchange Balancer launched the V3 platform upgrade, focusing on liquidity optimisation and improved developer tools. Amid these developments, the BAL price saw an increase of approximately 28 per cent on a daily basis.
Balancer has formed a strategic partnership with Aave!
Decentralised exchange protocol Balancer launched the V3 upgrade. Thus, it aims to optimise liquidity and provide new developer tools. It will also enable the growth of trading volume. Balancer V3 combines permissionless automated market maker technology with the yield market infrastructure of the DeFi lending protocol Aave, offering 100% Augmented Pools. As a result of this development, the price of Balancer’s native token BAL increased by approximately 28% on a daily basis. Token was changing hands at $ 3.80 at the time of writing.
As Kriptokoin.com noted, Aave was the leading launch partner for the upgrade. Also, others are expected to follow suit. The integration enables pools to combine the return from swap and borrowing markets into a single efficient position. Balancer co-founder Fernando Martinelli said about the development:
Aave’s integration with Balancer v3 is a milestone for both ecosystems. Together, we are delivering an efficient, scalable, and accessible liquidity solution for everyone in DeFi.
Stani Kulechov, founder of Aave Labs, commented
In a statement, the team explained that Boosted Pools offers a passive liquidity solution that directs all underlying capital to external yield markets while maintaining liquidity for swaps. Liquidity providers can optimise returns with a single click. They also have easy access to DeFi’s most efficient markets without active management. Stani Kulechov, founder of Aave Labs, made the following statement about the partnership:
‘Combining the strengths of Aave and Balancer, the new Aave V3 Boosted Pools empowers users with improved capital efficiency and simplified return generation. Users maximise returns, seamlessly access both supply and clearing functions and enjoy a smooth user experience with minimised gas costs.
New developer tools
Balancer supports automated portfolio management and trading of crypto assets on Ethereum and other EVM-compatible Blockchains. Its modular design allows DeFi projects such as CoWSwap and Xave to create custom pools according to their needs. The team said that the V3 update will eliminate unnecessary complexity. It will also enable developers to innovate faster.
New features include custom pool types to make creating AMMs faster and more accessible, and a Hooks Framework to extend the functionality of existing pools. According to the team, Hooks use cases include dynamic liquidity management to make real-time fee adjustments, yield optimisation or automatic rebalancing in specific market conditions, and custom pool behaviour to provide customised parameters for unique trading strategies.
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