Balancer Now Officially Deployed On Avalanche To Expand LST Liquidity
Key Points:
- Balancer deploys on Avalanche to boost liquid staking growth and offer a flexible DeFi tech stack.
- Composable Stable Pools enable tailored hosting of liquid staking tokens, maximizing yield benefits for liquidity providers.
- Balancer collaborates with four key Avalanche LST protocols to enhance the Avalanche LST market.
Balancer, a renowned decentralized automated market maker (AMM) with a staggering $1 billion in total value locked, has made a momentous announcement.
The platform is now officially deployed on Avalanche, a high-performance blockchain known for its throughput, fast finality, energy efficiency, and scalability through custom Subnets. Balancer’s foray into Avalanche aims to drive the growth of liquid staking on the network while offering users a more versatile DeFi tech stack.
Additionally, Balancer is keen on collaborating with four prominent LST protocols on the Avalanche network. This collaboration aims to consolidate the Avalanche Liquid Staked Token (LST) market under one umbrella, providing users and protocols with a unified and efficient platform. The protocols in question are sAVAX by BENQI, ankrAVAX by Ankr, yyAVAX by Yield Yak, and ggAVAX by GoGoPool.
LSTs are a crucial aspect of the DeFi ecosystem, and Balancer is set to revolutionize its hosting and management through its Composable Stable Pools. These innovative pools can be programmatically customized to ensure that liquidity providers (LPs) receive the full benefits of yield-bearing tokens. The secret lies in an inbuilt rate provider that constantly queries the blockchain, keeping the token ratios up to date and funneling yield accrual back to LPs. Unlike traditional setups where assets trade at a fixed 1:1 ratio, Balancer’s technology ensures that any appreciation in staking yield isn’t lost to arbitrage traders.
To further enhance its DeFi infrastructure, Balancer introduces Boosted Pools, a fusion of Liquidity Pools and single-sided yield markets. In a conventional Liquidity Pool, a significant portion of liquidity remains idle. However, Boosted Pools route this idle liquidity to external yield-generating protocols like Aave, unlocking additional Liquidity Mining incentives for users.
By joining forces with Balancer, the Avalanche LST protocols seek to elevate the capabilities of Avalanche’s Liquid Staked Tokens. The strategic partnership aims to enhance the liquidity and overall market dynamics of sAVAX, ankrAVAX, yyAVAX, and ggAVAX tokens.
This move not only showcases Balancer’s commitment to advancing DeFi possibilities but also underlines Avalanche’s attractiveness as a blockchain platform for innovative financial technologies. As Balancer’s technology intertwines with Avalanche’s unique features, the future of liquid staking on the network appears promising, with increased efficiency and new opportunities for DeFi participants.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Author
DeFi
Balancer Now Officially Deployed On Avalanche To Expand LST Liquidity
Key Points:
- Balancer deploys on Avalanche to boost liquid staking growth and offer a flexible DeFi tech stack.
- Composable Stable Pools enable tailored hosting of liquid staking tokens, maximizing yield benefits for liquidity providers.
- Balancer collaborates with four key Avalanche LST protocols to enhance the Avalanche LST market.
Balancer, a renowned decentralized automated market maker (AMM) with a staggering $1 billion in total value locked, has made a momentous announcement.
The platform is now officially deployed on Avalanche, a high-performance blockchain known for its throughput, fast finality, energy efficiency, and scalability through custom Subnets. Balancer’s foray into Avalanche aims to drive the growth of liquid staking on the network while offering users a more versatile DeFi tech stack.
Additionally, Balancer is keen on collaborating with four prominent LST protocols on the Avalanche network. This collaboration aims to consolidate the Avalanche Liquid Staked Token (LST) market under one umbrella, providing users and protocols with a unified and efficient platform. The protocols in question are sAVAX by BENQI, ankrAVAX by Ankr, yyAVAX by Yield Yak, and ggAVAX by GoGoPool.
LSTs are a crucial aspect of the DeFi ecosystem, and Balancer is set to revolutionize its hosting and management through its Composable Stable Pools. These innovative pools can be programmatically customized to ensure that liquidity providers (LPs) receive the full benefits of yield-bearing tokens. The secret lies in an inbuilt rate provider that constantly queries the blockchain, keeping the token ratios up to date and funneling yield accrual back to LPs. Unlike traditional setups where assets trade at a fixed 1:1 ratio, Balancer’s technology ensures that any appreciation in staking yield isn’t lost to arbitrage traders.
To further enhance its DeFi infrastructure, Balancer introduces Boosted Pools, a fusion of Liquidity Pools and single-sided yield markets. In a conventional Liquidity Pool, a significant portion of liquidity remains idle. However, Boosted Pools route this idle liquidity to external yield-generating protocols like Aave, unlocking additional Liquidity Mining incentives for users.
By joining forces with Balancer, the Avalanche LST protocols seek to elevate the capabilities of Avalanche’s Liquid Staked Tokens. The strategic partnership aims to enhance the liquidity and overall market dynamics of sAVAX, ankrAVAX, yyAVAX, and ggAVAX tokens.
This move not only showcases Balancer’s commitment to advancing DeFi possibilities but also underlines Avalanche’s attractiveness as a blockchain platform for innovative financial technologies. As Balancer’s technology intertwines with Avalanche’s unique features, the future of liquid staking on the network appears promising, with increased efficiency and new opportunities for DeFi participants.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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