untitled design

DeFi Balancer Protocol Version 2 Launched

Balancer Labs has released the second version of the Balancer decentralized finance protocol. To reduce transaction fees on Ethereum, Balancer pools are managed from a single repository.

The Balancer update, which has been in development for over a year, offers a generalized protocol for automated market makers operating in the decentralized finance (DeFi) sector. The second version of the protocol implies that all pools managed by Balancer will now be administered from one repository.

According to the developers of Balancer, the move should reduce gas fees on the Ethereum network for end users. As CEO Fernando Martinelli previously stated, the startup decided to launch a version of the protocol with separate pools for security reasons. The developers noted:

“We plan that the first version of the protocol will continue to provide the best price until a significant amount of liquidity is transferred to the second version. After that, the transactions will go through the vault of the second version of the protocol, which will lead to lower gas costs and more favorable prices. ”

The update was also supported by other projects: Gnosis, Aave, Gyroscope, Enzym Finance, Ocean Protocol, PowerPool and Techemy Capital. According to Balancer, other DeFi apps will help provide better pricing, higher profitability, optimized liquidity, and support for Balancer’s version 2 automated market maker logic.

In addition, the second version of the Balancer protocol introduces asset managers or external smart contracts in which the base value of the liquidity pool can be used in other DeFi applications.

According to DeFi Pulse, the DeFi Balancer is growing in popularity. Balancer already ranks fourth among decentralized exchanges in terms of blocked cryptoassets. 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.

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular