The balancer is an automated market maker (AMM) and decentralized finance (DeFi) protocol. On Monday, the protocol announced that it has partnered with Lido to launch the MetaStable incentive program. Lido is the DAO-based staking platform MetaStable Pools are liquidity pools. They are specially designed to handle highly correlated (but not hard-fastened) tokens such as wrapped assets.
All the users on the platform will be able to exchange between MetaStable pools and the assets that are integrated with several other liquidity pools. In this process, they will also benefit from cheaper swap prices and removing the need for a special swap-specific stable pool. In addition, according to the statement released, they will also avoid diluting the liquidity from existing pools. Thus, they will increase the maximum trading volume. The first batch of pool listing, that includes both the staked Ether (stETH), as well as the wrapped staked Ether (wstETH), aims to provide liquidity for all the participants in the Ethereum network.
LDO and BAL Rewards Sponsoring Balancer Pool
LDO and BAL rewards are sponsoring the pool. They will allocate 2,500 BALs every week and an additional 25,000 LIDO every week in the first month. They have scheduled the first distribution for the 24th of August through the Balancer claim portal. In July, Balancer launched stable pools. These pools have comparatively narrower spreads and less slippage than other pools on the platform. This update from the platform made it the only AMM (automated market maker) that has 3 different types of liquidity pools. The pools are weighted, element, and stable.
At the beginning of this month, Unstoppable Domains CEO predicted that by 2025, the stablecoin market will reach $1 trillion. Or it can reach that height even earlier. However, he emphasized that the proliferation of stablecoins may raise volatility concerns. It may also raise further questions about the uncertainty of pegged assets.
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