Balancer made the exciting announcement of launching stable pools at Balancer V2 soon after the Element.fi pools’ release making Balancer the foremost AMM in the Blockchain universe with three types of pools. As of today, Balancer is associated with weighted pools, Element pools, and stable pools. The much-awaited launch of stable pools of Balancer is bolstered by the robust framework of the Vault architecture of Balancer V2 by the utilization of internal balances and batch swaps.
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Balancer’s stable pools are incredibly beneficial for liquidity providers and traders. These pools are particularly engineered for assets that have a similar price pattern. The maintenance of stable pools helps in increasing the capital efficiency for like-kind swapping. Liquidity providers prefer competitive yield with negligible impermanent losses, while traders seek lower slippage and tighter spreads by employing stable pools. What makes the stable pools more advantageous than the stable pools of other AMMs is that the stable pools of Balancer are driven by the same protocol as that of the weighted pools.
Balancer allows the traders to conduct trading through the weighted pools and the stable pools simultaneously at a slightly increased gas fee. One of the chief advantages of the Balancer Vault V2 is that the robustness and convenience of using the Vault continue to increase with the supply of more assets that enhance the platform’s liquidity and provide more competitive trading opportunities to the traders.
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As of today, Balancer operates with two stable pools that include staBAL3-BTC and staBAL3- USD. The protocol of Balancer facilitates automated management of the portfolio. The Balancer Protocol is unique in the sense that the users do not have to pay any fee to the portfolio manager. Instead, the users can obtain fees from the traders and rebalance their portfolios by employing the arbitrage opportunities.
