From c854783a76cd71d0d7293f74e19c5c8cb3799058 Mon Sep 17 00:00:00 2001
From: "steinkirch.eth, phd" <1130416+mvonsteinkirch@users.noreply.github.com>
Date: Sat, 15 Apr 2023 18:09:52 -0700
Subject: [PATCH] Create balancer.md
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MEV_and_trading/liquidity/balancer.md | 31 +++++++++++++++++++++++++++
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+## 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