After more than a year of development, the highly anticipated decentralized asset protocol Balancer V2 went live yesterday. For readers who don’t know it, Balancer V2 provides a generic AMM protocol, a full overview of which can be found in this article.
The New Way to Play DeFi 丨 An article about Balancer V2, bringing higher Gas efficiency and custom AMM logic
The following is the main information about this new version of the protocol (more details will be expanded below).
New trading and liquidity interface on app.balancer.fi.
Migration of liquidity from V1 to V2.
New BAL liquidity mining.
Dynamic fee pools powered by Gauntlet.
V2 release partners
New interface, and lower cost of gas
The Balancer front-end has been reconsidered as part of the V2 upgrade. balancer.fi is an interface created by Balancer Labs to share information with users entering the Balancer ecosystem.
On the surface, balancer.fi provides the same functionality as before. And on the back end, transactions will be routed through the most efficient protocols. We expect V1 to continue to offer the best prices until a significant amount of liquidity migrates to Balancer V2, at which point we expect transactions to be routed through V2’s protocol library, resulting in lower gas costs as well as better pricing.
The following is an example of the difference in gas cost for a WETH-DAI swap transaction.
In addition, the interface provided to liquidity providers (LPs) has been improved.
Updated website as well as branding
In addition, the new Balancer homepage provides an overview of the protocol improvements.
The new Balancer homepage
Go to app.balancer.fi to view balancer’s updated automated portfolio manager and trading platform.
The Balancer protocol has converted its governance implementation to a community multi-signature model, with new signatories under the governance scheme including
Alexander Lange (Inflection)
Ash Egan (Accomplice)
Cooper Turley (???? __????)
David Hoffman (Bankless)
Davis Ramsey (pools.vision)
Fabien Marino (Snapshot Labs)
Jake Brukhman (CoinFund)
Kain Warwick (Synthetix)
Kevin Owocki (Gitcoin)
Mariano Conti (Ethereum)
Trent McConaghy (Ocean Protocol)
This group will be responsible for implementing all proposals voted on at Snapshot.
As part of the V2 upgrade, mobility needs to be migrated over from Balancer V1 soon. We will give a full tutorial on this in a separate article.
Some partners have built a robust infrastructure around the Balancer V1 pool and may choose to keep the older version for the foreseeable future. However, these partners are encouraged to start a new pool on Balancer V2 to take advantage of all the additional benefits mentioned above.
Balancer V2 liquidity mining
The Balancer protocol will be migrated to a new, more trust-free program for Balancer governance-approved BAL liquidity mining.
Once the new V2 liquidity mining program is launched, LPs will be able to pledge positions in different pools to receive BAL. there are 3 levels in total, each pool will correspond to a level and receive a fixed number of BAL rewards on a weekly basis.
And the allocation of these pool levels will be managed in a transparent and accountable manner by Ballers, who are the most active members within the Balancer community. Anyone can participate and become a Baller. v2 liquidity mining will be discussed in the Balancer forum.
Dynamic fee pool powered by Gauntlet
Balancer Labs has been working closely with Gauntlet to optimize the returns of the V2 pool. The set of Gauntlet pools created on V2 maps directly to the set of existing pools on V1. In total, the Gauntlet pools will contain most of the total Balancer V1 liquidity after migration.
Gauntlet introduces dynamic fee pools by using a rigorous approach and taking into account multiple inputs (including market conditions such as volatility) to make optimal fee forecasts for the pools. This is expected to result in higher APYs and optimized transaction fees for LPs!
For more information on Gauntlet pools, please see the following brief.
V2 Release Partner
Balancer Labs is also reported to have joined forces with a number of partners for this V2 release, including Gnosis, Aave, Element Finance, Enzyme Finance, Gyroscope, Ocean Protocol, PowerPool, Techemy Capital.
Balancer-Gnosis-Protocol (BGP) combines the new and improved vaulting system of Balancer V2 with the price discovery mechanism of Gnosis protocol.
BGP guarantees users better prices in their transactions, and with the integration of liquidity sources, BGP can outperform DEX aggregators in terms of price. In addition, the two parties will soon launch a joint incentive program, which is expected to start in mid-June.
Balancer has established a partnership with Aave that optimizes the liquidity provider experience through the Aave-Balancer Asset Manager and opens up new possibilities for Aave depositors and Aave/ETH security incentive pools.
- Element Finance
Element Protocol delivers the attractive high fixed-rate yields that DeFi users crave, while maximizing capital efficiency and creating liquidity for the market. The protocol uses Balancer V2’s custom trading curve feature to enable an invariant that is well suited for assets whose value converges over time.
Enzyme is a non-custodial on-chain asset management infrastructure that allows people to create crypto asset positions through the Enzyme application interface. Enzyme has access to Balancer v2, which allows users to earn BAL rewards through the Enzyme liquidity pool.
Gyroscope is a new stablecoin design that achieves this through a new AMM design, and BalancerV2’s support for customizable AMM logic greatly simplifies and enhances the development of AMM.
Balancer V2’s flexible AMM will help Ocean reduce impermanent losses and improve the initial data product, so the Ocean protocol will introduce Balancer V2 in the next major release.
PowerPool chose Balancer V2 as the core technology for building exponential and dynamic AMM pools, which provides great flexibility and opportunity to build customizable pools and integrate them seamlessly into the ecosystem.
Techemy Capital will use Balancer V2 as its infrastructure for running ETPs.
What is the next step?
Over the next few weeks, the project will share more resources on Balancer V2, as well as updates on key topics such as liquidity migration, BAL liquidity mining, and V2 governance, among other guides.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/defi-way%e4%b8%a8balancer-v2-officially-launched-seven-highlights-in-one/
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