diff --git a/MEV_and_trading/liquidity/balancer.md b/MEV_and_trading/liquidity/balancer.md new file mode 100644 index 0000000..d0dbdc9 --- /dev/null +++ b/MEV_and_trading/liquidity/balancer.md @@ -0,0 +1,31 @@ +## balancer + +
+ +### tl; dr + +* liquidity infrastructure + +
+ +--- + + +### composable stable pools + +* contribute more than $640M to balancer's tvl +* one of the many technical components of balancer's flexible amm framework and essential for token like stables or lsds +* these pools are designed for assets that are either expected to consistently trade at near parity, or at a known exchange rate +* pools use stable math, based on stableswap (populatized by curve finance) +* reinforced by balancer's nested pool v2 infrastructure, metastable pools have a myriad of benefits compared to a standard pool 2: correlated token liquidity utilization, reduced liquidity fragmentation of like-assets, capital efficiency. +* use cases include: bb-g-USD, wstETH, and bb-i-USD. +* protocols like gearbox, lido, and idle continue to expand on the capabilities of metastable pools. +* best assets are either pegged or correlated (e.g rETH and boosted pools like bb-g-USD). +* token swaps can occur between any and all nested pools within balancer (e.g. aave boosted pools and rocket pool lsd eth). +* each pool has a function known as a rate provider that updates tokens to the correct ratio any time a trade takes place. this function means that liquid staked yield flows to liquidity providers rather than arbers. + +
+ +--- + +## resources