Odaily News Balancer V3 has been deployed to Arbitrum, aiming to optimize liquidity, provide new development tools and drive trading volume growth. It is understood that Balancer V3 introduces 100% Boosted Pools, combining its permissionless automated market maker technology with the yield market infrastructure of DeFi lending protocol Aave.
Boosted Pools provides a passive liquidity solution that directs all underlying capital to external yield markets while maintaining swap liquidity. With a single click, liquidity providers can optimize returns and access DeFi markets without the need for active management.
The new Hooks feature allows developers to customize pool functionality, for example applications like StableSurge can adjust redemption fees to stabilize asset pegs during volatility.
Additionally, future governance mechanisms such as veBAL gauges will enable the Arbitrum community to influence incentive allocation.