Balancer: Custom AMMs and Liquidity Solutions

While AMMs (automated market makers) represent a DeFi innovation in themselves, research and experimentation have pushed the possibilities well beyond the limitations of the classic x*y=k constant product formula originally used by LPs. One of the main innovators in this field remains Balancer - from multi-token pools with different weights replicating TradFi indices, to dynamic ratios that can be changed under certain conditions preventing further imbalances, Balancer set in place user protection measures. With the recent release of Balancer V3, developers get more freedom to experiment with AMMs, introducing features such as hooks that enable limitless pool customisation, boosted pools that combine LP fees with yield farming from money markets, and many more.

Topics:

• Balancer’s inception
• The evolution of AMMs
• Balancer vs. other AMM competitors
• Fungible vs. non-fungible liquidity
• Balancer v3
• Boosted liquidity pools
• DevEx and hooks in Balancer v3
• Preventing stablecoin depegs
• MEV mitigation & CoW AMM
• Scaling to L2s
• Gyroscope & QuantAMM
• Balancer’s B2C & B2B solutions

Links:

• Fernando Martinelli on X
• Balancer on X