Balancer V3 Is Here

A robust and flexible base layer, with hooks for customization and boosted yields from deploying assets into onchain lending markets — v3 is much more than a DEX upgrade. It further solidifies Balancer’s position as the Bedrock of AMM Innovation.

TLDR:
➕ Boosted Pools: In 1-click, LPs can earn yield from both trading and lending.
🪝 Hooks: Unlock a vast design space for AMM experimentation.
🪴 Base Layer: A 10x improvement in pool developer experience makes it easier than ever to Build on Balancer.

Controlling 68% of all veBAL, Aura amplifies LP yields, offers a yield-bearing liquid wrapper, and powers governance, with voting markets regularly paying over 60% APR.

Excitement around DeFi has surged, and with it, lending rates on markets like @aave and @MorphoLabs.

Before v3, users had to make a decision: earn yield from lending markets OR from providing liquidity. Now, users can earn from BOTH simultaneously, unlocking a new era of capital efficiency in DeFi.

How does it work?

Imagine there’s a boosted $DAI/$USDT/$USDC pool. LPs who deposit into this pool will have 100% of their assets redirected to a yield-generating market like Aave or Morpho. By integrating a buffer where most normal trading occurs, Boosted Pools increase LP profitability while abstracting complexities and remaining gas-efficient for low-cost swaps.

Hooks enable the customization of pool logic at various stages of its lifecycle, leading to unprecedented flexibility in AMM design.

In the v3 Hookathon, we saw the integration of prediction markets, an MEV Tax, and discounts on swap fees for those that hold the protocol’s native token. This represents just a glimpse of the creative potential that hooks unlock.

While hooks are often thought to be tailored for niche use cases, their impact can be profound. For example, the StableSurge Hook could position Balancer as the central platform for stablecoin trading.

https://medium.com/balancer-protocol/balancers-stablesurge-hook-09d2eb20f219

Balancer is more than just a DEX; it’s the only platform for truly permissionless AMM experimentation.

The success of Balancer and Aura depends largely on the success of protocols building on top of Balancer. The redesigned v3 vault makes it much simpler to do so, resulting in a 10x improvement in pool developer experience.

Even before v3, top-tier teams have already started building on Balancer. CoW AMM, by @CoWSwap, is the first AMM that protects LPs from LVR. @GyroStable pools bring the benefits of E-CLPs and often drive an outsized share of trading volume.

What happens once it gets even easier to Build on Balancer? An AMM Renaissance.

With 68% of all veBAL locked in Aura, there is no larger stakeholder in Balancer’s success. It’s also where most users should go to get exposure to the Balancer ecosystem.

• LPs can stake their Balancer Pool Tokens (BPTs) on Aura to earn boosted rewards.

• vlAURA gives governance rights, including gauge voting, which earn an additional source of revenue from vote markets like @HiddenHandFi and @Paladin_vote

• $auraBAL receives veBAL fees, Aura protocol fees, and $AURA emissions without requiring a lock.

It was a long wait, but Balancer v3 is finally here!

An improved developer experience makes it much simpler for protocols to rapidly experiment and bring new AMMs to market, while hooks provide further customizability. Boosted Pools make LPing more profitable as lending markets unlock an additional source of yield.

Sitting on top, Aura makes participating in the Balancer ecosystem more accessible as we usher in a new era of AMM innovation.