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MEV_and_trading/liquidity/balancer.md
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## balancer
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<br>
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### tl; dr
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* liquidity infrastructure
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<br>
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---
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### composable stable pools
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* contribute more than $640M to balancer's tvl
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* one of the many technical components of balancer's flexible amm framework and essential for token like stables or lsds
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* these pools are designed for assets that are either expected to consistently trade at near parity, or at a known exchange rate
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* pools use stable math, based on stableswap (populatized by curve finance)
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* 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.
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* use cases include: bb-g-USD, wstETH, and bb-i-USD.
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* protocols like gearbox, lido, and idle continue to expand on the capabilities of metastable pools.
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* best assets are either pegged or correlated (e.g rETH and boosted pools like bb-g-USD).
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* token swaps can occur between any and all nested pools within balancer (e.g. aave boosted pools and rocket pool lsd eth).
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* 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.
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<br>
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---
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## resources
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