Balancer V3 Expands to Avalanche, Delivering Programmable Liquidity Mechanics and Strong Capital Efficiency

Balancer, a prominent decentralized finance protocol developed on Ethereum, has announced the V3 launch on Avalanche

Balancer, a major decentralized finance protocol operating on Ethereum, has announced the launch of V3 on Avalanche, a prominent blockchain network.

Announcing the integration on Thursday, Balancer stated that it is bringing its V3 update to the blockchain of Avalanche to provide "powerful tools" for DeFi strategists, developers, and liquidity providers. The platform took to social media to announce the integration.

"Announcing Balancer V3 on Avalanche! 🏛️ 🧊 Programmable liquidity mechanics, strong capital efficiency, and smarter tooling for on-chain stability. "

The launch of Balancer V3 on Avalanche marks a significant milestone, introducing programmable liquidity. In addition to this, the update will also enable seamless integration with local Avalanche protocols and facilitate optimal capital efficiency.

Avalanche has already emerged as a central hub for Real World Assets (RWAs), blockchain developers, and liquidity providers. Furthermore, with the introduction of Balancer V3, a substantial layer of yield optimization and composability is being added to the ecosystem.

As Balancer further explained, the consumers will be provided with a suite of exclusive features including upgraded pools, support for modified strategy-led pools, and programmable hooks. At the heart of the Balancer V3 upgrade lies the 100 percent Boosted Pools. This innovation integrates with the lending markets of Aave.

These pools ensure the availability of the assets in the liquidity pool even after their deposit. Additionally, it permits the rehypothecation of these assets to offer yield within the Aave ecosystem.

A key example highlights the newly released Boosted Pool that includes $ggAVAX, $sAVAX, and $wAVAX. This pool is a product of a collaboration between GoGoPool and Benqi Finance. The pool boosts the mentioned assets via Agrade to create high-yield liquidity.

The efficient product is modified for the ecosystem of Avalanche. Balancer has also unveiled a couple of boosted pools for stablecoins. One of them includes $AUSD, $USDT, and $USDC, while the other includes $sdeUSD, $upAUSD, and $savUSD.

According to Balancer, its V3 upgrade lets developers implement hooks, which are programmable extensions for the execution of custom logic for exits, joins, and swaps. The respective feature unlocks the door for DeFi apps to build customized functionality into the liquidity infrastructure of Balancer.

Overall, Balancer V3′s deployment underscores a paradigm shift in the optimization and management of DeFi liquidity.