Balancer LP Tokens Now Accepted as Collateral on Monad
Balancer LP Tokens Now Accepted as Collateral on Monad
🔓 LP tokens unlock liquidity
Balancer has launched its first LP token (BPT) collateral integration on Monad for the AUSD/USDC/USDT pool. The integration is powered by Euler as the lending layer and curated by Alpha Growth.
Key Development:
- LPs can now use their Balancer Pool Tokens as collateral to access liquidity
- No need to unwind positions or forfeit ongoing yield earnings
- BPTs continue earning fees and yield while serving as collateral
Growing Adoption: Several protocols have already integrated Balancer LPs as eligible collateral:
- Rocket Pool
- StakeWise
- Treehouse Finance
This solves a key limitation where LP capital was previously locked - users had to exit positions entirely to access liquidity, sacrificing accumulated earnings. Now LPs can maintain their yield-generating positions while unlocking additional capital utility through lending markets.
What if your Balancer LPs could do more than earn fees and yield? They are now accepted as collateral across lending markets, opening up new possibilities on top of your position. Here's how it works 🧵
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Already integrated by: - @Rocket_Pool - @stakewise_io - @TreehouseFi These protocols now accept Balancer LPs as eligible collateral, letting LPs access liquidity without unwinding their positions.
When you provide liquidity on Balancer, you receive BPTs (Balancer Pool Tokens). These ERC-20 tokens represent your share of the pool. As fees accumulate and assets generate yield, the value of your position grows. LP capital, though, had a limitation. 👇
Your position earns over time, yet it's locked. Accessing liquidity meant exiting and giving up your earnings. With Balancer LP as collateral integrations, that's no longer the only option.
Balancer Launches Boosted Euler Pools with Alpha Growth Integration
Balancer has integrated with Euler and Alpha Growth to create a new lending infrastructure. The collaboration divides responsibilities: - **Balancer** provides the pool infrastructure - **Euler and Alpha Growth** manage collateral parameters and lending risk This builds on Balancer's May 2025 announcement of boosted Euler pools, marking the arrival of their "lending super app." Users can explore the integration at [balancer.alphagrowth.fun](https://balancer.alphagrowth.fun/) The partnership combines Balancer's liquidity infrastructure with Euler's risk management expertise to create enhanced lending pools.
Tokenized Stock Index Fund Goes Live On-Chain
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Weighted Pools Enable Multi-Asset Liquidity with Custom Ratios
**Weighted pools** allow liquidity providers to create pools with up to **8 different assets** in custom ratios, moving beyond traditional 50/50 two-token pools. **Key features:** - Set custom weight distributions (40/30/20/10, equal splits, or any combination) - One pool supports multiple trading pairs simultaneously - Automatic rebalancing occurs through arbitrage activity - Earn swap fees as arbitrageurs restore target weights when tokens fluctuate When one token in the pool experiences price movement, arbitrageurs step in to restore the predetermined weight ratios, generating fee revenue for liquidity providers in the process. This creates a more flexible approach to providing liquidity across multiple assets within a single pool structure.
80/20 Liquidity Pools: A Capital-Efficient Alternative to Traditional AMMs
**80/20 pools offer a capital-efficient solution for projects launching tokens.** - Pool composition: 80% project token, 20% ETH or stablecoin - Requires only 1/5 of pool value in "real" capital (ETH/stablecoin) - Traditional 50/50 pools demand half the pool value in ETH **Key advantage:** Projects can seed tradeable liquidity with significantly less upfront capital compared to balanced pools. This builds on earlier innovations like Liquidity Bootstrapping Pools (LBPs), which could start at 99/1 ratios and adjust to market-determined prices with minimal initial capital requirements.