Balancer’s new feature allows traders to access pools of assets that trade at comparable price levels, which they can then use to their advantage.
Balancer promises to be the world’s first automated market maker to provide consistent pools of money for traders.
Balancing, a well-known automated cryptocurrency market maker, has announced a new protocol function that is intended to minimise fees and improve the trading execution for like-kind waps. The feature is available now.
Stable pools, according to Fernando Martinelli, co-founder and CEO of Balancer Labs, are “designed specifically for assets that trade at a similar price.”
Thus, the pools improve capital efficiency for like-kind swaps, allowing traders to take advantage of tighter spreads and lower slippage as a result. Providers of liquid assets, on the other hand, have the possibility to earn a competitive yield.
Martinelli highlighted that, in contrast to typical weighted pools, all tokens within the Balancer stable pools are held in a single vault, which he described as follows:
A trader can use Balancer to execute trades that route through both pools at the same time with only a minor increase in gas expenses compared to, for example, a trade that routes via Curve and Uniswap.
With the addition of stable pools, Balancer now offers at least three different types of pools, the other two of which are weighted pools and the Element Finance integration, which was introduced in April of this year, among other features.
Funding for Balancer Labs has totalled tens of millions of dollars from venture capital firms looking for long-term exposure to the decentralised finance (also known as “DeFi“) market.
Three Arrows Capital, Blockchain Capital, LongHash Ventures, and Fenbushi Capital are among the most well-known venture capital firms that have invested in Balancer.
As previously reported by Cointelegraph, Balancer introduced version 2 of its technology in May of this year, promising better performance and improved liquidity over the previous version. A significant reduction in gas prices was realised as a result of the modification, particularly for internal balances.