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Balancer competes with Uniswap and Curve! Introduces Bitcoin and stablecoin pools.

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Balancer competes with Uniswap and Curve! Introduces Bitcoin and stablecoin pools.

In addition to the original weighted pools and the Element.fi pool launched in collaboration with the fixed-rate protocol Element Finance, the automated market maker protocol Balancer announced that it will be introducing stablecoin trading pools on V2.

Balancer

Unlike other Automated Market Makers (AMMs) that support only two assets in their liquidity pools, Balancer allows users to provide up to 8 different tokens to its liquidity pools, with each token's balance in the pool weighted accordingly. Therefore, the initial liquidity pools launched by Balancer are referred to as Weighted Pools.

pools.balancer

Subsequently, the fixed-rate protocol Element Finance became Balancer's launch partner, introducing the Element.fi pool.

Creating Stablecoin Trading Pools

In their announcement, Balancer Labs stated that they will create two stablecoin pools for traders and liquidity providers:

Balancer emphasizes that trading pools with similar assets significantly reduce slippage, enhance capital efficiency, provide more competitive returns for liquidity providers, have minimal impermanent loss, and lower transaction fee costs compared to trading on Curve and Uniswap.

Deployment on Polygon

In addition to creating new stablecoin trading pools, Balancer launched V2 in early May and deployed and introduced incentive pools on the Ethereum scaling solution Polygon on 6/29.

As previously reported, Balancer's development direction is not limited to Automated Market Maker (AMM) protocols or decentralized exchanges (DEXs), but rather focuses more on being a digital asset management platform that allows users to provide their investment portfolios as a liquidity platform to earn additional income.