Balancer v3 launches in partnership with AAVE

Balancer, a decentralized exchange and automated portfolio management protocol, announced that its v3 upgrade is now live.

The Balancer (BAL) team said that v3 is an upgrade designed to drive the next chapter of growth of the decentralized finance ecosystem, with the main focus being liquidity optimization and incentivizing developers.

Balancer v3 offers 100% powered pools and has a major partnership with DeFi giant Aave (AAVE).

100% Increased Pools

Balancer v3’s 100% Augmented Pools provide a passive liquidity solution where underlying capital goes to external return markets. However, it maintains liquidity for swaps. This means liquidity providers can maximize returns with a single click by participating in one of the most efficient markets in decentralized finance.

Aave will power v3’s first Empowered Pools, Balancer told crypto.news in a press release. The protocol expects to add more partners as it expands the solution across DeFi.

As the launch partner of Balancer v3, Aave will integrate 100% Augmented Pools and leverage the integration to provide unparalleled liquidity optimization to ecosystem users. Balancer and Aave aim to transform the broader DeFi market through Balancer’s automated market maker technology and Aave’s infrastructure.

“Combining the strengths of Aave and Balancer, the new Aave V3 Powered Pools provide users with improved capital efficiency and simplified return generation,” said Stani Kulechov, founder of Aave Labs.

The integration offers benefits such as greater returns, access to supply and clearing functions, and lower gas costs.

Along with integration with Aave, Balancer announced that the v3 rollout comes with multiple key features. These include custom pool types designed to help projects create custom pools and the Hooks Framework, which helps unlock new liquidity management possibilities.

This functionality for hooks includes use cases such as dynamic liquidity management for real-time fee adjustments or custom pool behavior for yield optimization and trading and investment strategies.

Projects looking to leverage V3 include liquidity pools platform Gyroskop and on-chain funding protocol QuantAMM.