Balancer is being deployed on the Avalanche chain to drive the growth of the LST market.
2023-08-02 02:59
Odaily News According to official sources, Balancer is deploying on the Avalanche chain to drive the growth of Liquid Staked tokens and provide participants with a unique and flexible DeFi technology stack.
Balancer states that its Composable Stable pools, which are programmatically customized to ensure that all power flows to LPs for Yield Bearing tokens, differ from typical stable pools deployed by DEX for LST. These pools leverage built-in rate providers, constantly query the blockchain to update tokens at the correct ratios, and provide accruals back to LPs.
With the launch of Balancer on the Avalanche chain and collaboration among the four key LST protocols, the Liquid Staked Token market will be unified. Balancer will host liquidity for sAVAX from BenQi, ankrAVAX from Ankr, yyAVAX from Yield Yak, and ggAVAX from GoGoPool to enhance the Avalanche LST market.
Balancer's weighted math also provides the ability for all protocols to deploy the 80/20 proposal on Avalanche. This proposal allows protocols to establish native token liquidity, mitigate rent-seeking incentives, and unlock the next phase of governance token economics.
The 80/20 proposal aims to address the liquidity shortfall after the pledging of governance tokens. According to Balancer, the main advantages of this proposal include providing deep liquidity, reducing gratuitous losses, effective incentives, and hedging against price fluctuations.
Balancer states that its Composable Stable pools, which are programmatically customized to ensure that all power flows to LPs for Yield Bearing tokens, differ from typical stable pools deployed by DEX for LST. These pools leverage built-in rate providers, constantly query the blockchain to update tokens at the correct ratios, and provide accruals back to LPs.
With the launch of Balancer on the Avalanche chain and collaboration among the four key LST protocols, the Liquid Staked Token market will be unified. Balancer will host liquidity for sAVAX from BenQi, ankrAVAX from Ankr, yyAVAX from Yield Yak, and ggAVAX from GoGoPool to enhance the Avalanche LST market.
Balancer's weighted math also provides the ability for all protocols to deploy the 80/20 proposal on Avalanche. This proposal allows protocols to establish native token liquidity, mitigate rent-seeking incentives, and unlock the next phase of governance token economics.
The 80/20 proposal aims to address the liquidity shortfall after the pledging of governance tokens. According to Balancer, the main advantages of this proposal include providing deep liquidity, reducing gratuitous losses, effective incentives, and hedging against price fluctuations.
Recommended Articles
