Liquid Staked Token flywheels. Symbiotic and interconnected Boosted Pools. Next-gen 8020 tokenomics. Versatile infrastructure to effortlessly Build on. As the most flexible base layer in DeFi, Balancer technology is fuelling network-wide liquidity growth across multiple networks.
Compared to a typical stable pool that most DEXs implement for Liquid Staked Tokens (LSTs), Composable Stable pools are programmatically tailored to ensure that the full power of Yield Bearing tokens flows to Liquidity providers. How? Composable Stable Pools harness an inbuilt rate provider that constantly queries the blockchain, updating the token to the correct ratio and feeding the yield accrual back to LPs. Without rate provider technology, the two assets trade at 1:1 with any appreciation in staking yield leached out to arbitrage traders.
This innovative technology also unlocks an incredibly efficient LST incentive flywheel. With the benefits of these tokens actually flowing to users, Balancer can take a fee on this otherwise lost advantage. Integrated into a strategically implemented core pool mechanism, this fee is then fed back into the pool as voting incentives igniting a flywheel of efficient and ongoing liquidity growth.
Boosted Pools intertwine the power of Liquidity Pools and single-sided yield markets into one powerful dynamic position. In a typical Liquidity Pool, less than 20% of the liquidity facilitates swaps, Boosted Pools wrap and route idle liquidity into external yield-generating protocols, unlocking an additional source of sustainable Liquidity Mining incentives for users.
This unique pool type offers:
Optimized swap routing
Nested interconnectivity
Protocol — Protocol liquidity symbiosis
A brilliant example is Balancer Boosted Aave V3 USD on Ethereum. This Tri-Stable Boosted USDC/USDT/DAI pool offers protocols instant access to efficient swap paths for multiple USD tokens at the onset of pairing alongside an additional boost in efficiency for users. Via actively growing trading liquidity alongside aiding lending market growth, this technology is uniquely positioned to help bootstrap growth on any new chain that integrates it.
