Balancer V2 is to make AMMs Simple, Gas efficient, Capital efficient and Flexible. For clarity, AMMs refer to Automated Market Making.
V2 is expected to launch in March. Those who are interested in building on V2 are encouraged to join their launch partner program for early access to the repo and docs.
The launch is considered to be a step towards Balancer’s vision to become a flexible, efficient source of DeFi liquidity. To keep up with V2 users will do best by joining the emerging community of BALlers on Discord in a way to keep a close eye on the governance forum.
Also, a big UI update is coming with V2. There will be a migration UI to assist LPs in migrating their exact V1 pools to V2 pools or consolidating some liquidity in similar pools on V2.
Fernando Martinelli, Co-Founder and CEO Balancer Labs stated, another great day in Balancer’s history! We are extremely proud to announce Balancer V2 which was in the works for over a year. If you are interested in building on it and becoming a V2 launch partner, please let us know.
Balancer (BAL) V2 Features
V2 features a single vault that holds and manages all assets added to Balancer pools. AMM logic is separate from the token management and accounting, allowing for deeper liquidity and programmability.
While trades can use multiple pools, only final net token amounts are transferred thus saving a significant amount of gas. V2 features internal token balances, which are extremely useful for high-frequency trader efficiency.
V2 allows every pool to have a custom AMM strategy including: Weighted pools for constant weight, index funds, stable pools for soft-pegged tokens, h/t Curve Finance and smart pools for ongoing parameter changes and more.
Asset Managers are trusted external smart contracts that can utilize the underlying tokens a pool has deposited in the Protocol Vault. This means tokens not being used for trading can be used in DeFi lending protocols.
V2 will include oracles that are resistant to sandwich attacks (h/t @ Uniswap) and offer two types of prices that can be queried with low gas costs. Instant: More up-to-date price but less resilient Resilient: Less up-to-date price but more resilient.
V2 implements the option for protocol fees controlled by BAL governance on: Trades, Vault withdrawals, Flash Loans Trade and withdrawal fees are off at inception while Flash Loan fees will start small. All protocol fees will be kept in the Vault.
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