Balancer Labs developers have launched the third version of liquidity pools in the protocol. Stable pools are created for assets that are traded at the same price and will allow lower fees for users.
According to the Balancer developers’ Medium article, a third type of liquidity pools will be launched in the protocol – stable pools. With the recent launch of Element.fi pools, stable pools make Balancer the first automated market maker with three different pool types: weighted, elemental and stable. The developers write:
“Stable pools are designed specifically for assets that trade at a similar price, which significantly increases the capital efficiency for similar swaps. Traders will have access to tighter spreads and less slippage, while liquidity providers will enjoy competitive returns with very low volatile losses. ”
According to the statement, the key advantage over other AMMs is that Balancer’s stable pools connect to the same protocol as weighted pools. All tokens are in one storage, which makes trading much more efficient. In Balancer, a trader can make trades going through both pools at the same time, with very little increase in gas costs compared to, for example, trades going through Curve or Uniswap.
Recall that in May, the Balancer Labs developers released the second version of the Balancer decentralized financing protocol. To reduce transaction fees in Ethereum, Balancer pools are managed from a single repository. In April, Balancer Labs launched a campaign to find bugs in the second version of the protocol. Hackers were offered up to 1,000 ETH or $ 2 million for vulnerability reports.
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