Not just AMM! Balancer V2 officially launched, creating an efficient and flexible asset management platform

Balancer Labs announced yesterday that Balancer V2 has officially launched. In addition to a significant revamp of the front-end user interface, updates include gas-saving features, community multisignature governance, the introduction of Gauntlet dynamic fees, and the announcement of multiple partners. The BAL token has surged 17% in the past 24 hours.

Balancer V2 Highlights

Currently, the new version of Balancer V2 frontend is now available for access, allowing users to manage portfolios or execute trades on the new interface. However, the current new version frontend interface does not support the creation of new pools; users can only access existing pools on the website. For pool creation, users must go to the old version interface.

Compared to the V1 version, the V2 version has undergone significant optimizations in the backend operations. One of the most noticeable updates for users is the significant reduction in Gas fees for transactions. According to Balancer Labs' press release, for example, exchanging between WETH and DAI could save up to 53% in Gas costs between V1 and V2.

In addition, Balancer has also made changes to the fee structure. In the past, Balancer's fees were calculated at a fixed rate. However, to align with the interests of traders and increase liquidity provider (LP) earnings, Balancer is collaborating with Gauntlet to introduce dynamic fee pools based on various market data (such as market conditions like volatility), aiming to achieve a "higher volatility, higher fees; lower volatility, lower fees" effect, optimizing fee market pricing for pools.

In terms of governance, Balancer will also use a multi-signature mechanism instead of administrator private keys in V2, further decentralizing the protocol. According to Balancer Labs, administrator private keys will be split into 11 parts and transferred to partners and community participants from Inflection Protocol, Bankless, Snapshot Labs, Synthetix, Gitcoin, Ocean Protocol, among others.

Next Steps for V2

In addition to the above updates, Balancer has also deployed features such as a "Protocol Vault applicable to all Balancer pool assets" and "customizable AMM logic," which can be viewed in this article. Looking at Balancer's development direction, it is not limiting itself to Automated Market Maker protocols (AMMs) or decentralized exchanges (DEXs), but positioning itself more as a digital asset management platform, allowing individuals to provide their portfolios as liquidity platforms to earn additional returns.

As Balancer V2 has just been launched, most liquidity remains in the V1 protocol. Balancer Labs will gradually release information on liquidity migration, BAL token liquidity mining, and V2 governance in the coming weeks. BAL token has seen an approximately 16% increase in the past 24 hours.