Balancer Protocol Launches Boosted Pools with Aave

Balancer, an open-source protocol and liquidity provider, announced today the official launch of AAVE-powered Boosted Pools.

The “Automated Market Maker” Pools (AMM) set to be deployed by the protocol aims to solve the decreased capital efficiency with yields on tokens, the company noted in an announcement shared with FXEmpire.

Boosted Pools grants users to deploy a given percentage of the liquidity in a pool to money markets like Aave and keep a smaller percentage inside the pool for traders to use as liquidity.

Gaining Interest from the Aave Platform

“The collaboration with Aave as the first iteration of the Boosted Pools launch is a natural fit and solidifies their place in the Balancer ecosystem. There are various levels of Boosted Pool innovations that lead to concrete results,  deeper liquidity, more efficient integrations for liquidity, and higher yields,” Fernando Martinelli, Balancer Labs’ CEO and Co-Founder, commented.

That said, the solution expects to solve the expensive efforts of wrapping or unwrapping tokens during a swap, Balancer added in the announcement. Usually, only 10% of the liquidity deposited into an AMM pool is used by traders because sizes are much smaller than the available liquidity.

With Boosted Pools, Balancer seeks that the portion of the liquidity’s percentage deployed on Aave will gain interest from the Aave platform.

Arbitrum’s Integration on OpenOcean

Recently, OpenOcean announced the integration of Arbitrum as well as its decentralized exchanges (DEXs), such as UniSwap v3, Balancer v2, SushiSwap, Curve, DODO, Synapse, and Swapr.

With the maneuver, users from OpenOcean could trade on multiple Ethereum Layer-2 constructions via Arbitrum, which has experienced an increase in its total value locked (TVL).

Arbitrum has over 40% of the market share of the Layer-2 TVL, according to metrics from l2beat.com. The next ones on the ranking are dYdX, Boba Network, Loopring, and Optimism.

The DeFi and CeFi aggregator noted that they plan to add more cross-chain swaps and protocols, and products while also planning to launch intelligent management services in the future.