Scaling Balancer v3: Next Steps
Scaling Balancer v3: Next Steps
🏗️ Building DeFi's Next Chapter
Following Balancer v3's launch, the protocol outlines three key objectives for the next two quarters:
Supporting Partners: Creating an environment for partners to innovate with v3, fostering collaboration and new use cases
Building on v3: Prototyping and demonstrating unique applications to showcase platform capabilities and inspire developers
Driving v3 Integrations: Prioritizing integration with major DeFi primitives like aggregators, wallets, and dashboards through standard conventions and robust tooling
The initiative aims to establish Balancer v3 as a foundational DeFi layer.
As 2025 sets in, we’re taking a moment to reflect on a year of progress for Balancer. From cutting-edge innovations to community growth, this year has set the stage for what’s next. Here’s a look back at our biggest achievements. 🧵👇
đź”´ BAL Liquidations Trigger Price Volatility
**Major BAL liquidations occurred overnight on Aave and Venus**, causing significant price swings in the market. **Key Points:** - Large BAL positions were liquidated across lending platforms - Price volatility followed the liquidation events - Balancer teams are reviewing impact on liquidity mining emissions - Coordination with ecosystem partners is underway **Protocol Status:** The Balancer protocol remains secure and fully operational. This was an external market event that did not compromise the protocol's functionality or security.
đź”’ Balancer V3 Security Updates
The Balancer team continues advancing protocol security with their V3 development. Team member @0xJuani presented the latest security improvements in a recent update. **Recent Security Focus:** - V3 re-audits in progress - Internal testing automation implementation - New safeguards for upcoming pool versions Protocol-level security remains the team's primary focus as they work toward the V3 launch.
Nerite Org Presents Decentralized Borrowing Protocol at Balancer Office Hours
Balancer is hosting its weekly office hours session featuring Nerite Org. **Key Details:** - CupOjoseph from Nerite Org will present their decentralized borrowing protocol - Focus on how they leverage Balancer pools to scale USND - USND is a stablecoin that allows users to set their own interest rates This follows last week's session with Yuzu Money, which covered their Balancer pool strategies and yzUSD stablecoin development. The office hours series provides a platform for projects building on Balancer to share their technical implementations and product roadmaps with the community.
Balancer V3 Launch: New Chapter for DeFi Protocol
Balancer has officially launched **V3**, marking a significant upgrade to the decentralized exchange protocol. **Key Points:** - V3 represents a major technical evolution for the platform - The upgrade introduces new features aimed at improving the DeFi ecosystem - Full details available in the official [Medium article](https://medium.com/balancer-protocol/balancer-v3-here-to-stay-9ec37439b4be) The protocol describes this as "a new chapter where balance meets innovation," signaling their commitment to long-term development and ecosystem growth. Balancer continues to position itself as a foundational infrastructure for DeFi builders.
🏗️ Balancer V3 Simplifies Custom AMM Development from Months to Days
**Balancer V3 has dramatically simplified custom AMM development** by moving all complexity from individual pools to the vault architecture. **Pools now only need three functions:** - `onSwap` - calculation logic - `computeInvariant` - pool invariant - `computeBalance` - operation balances **The impact:** Custom AMM strategies that previously took months of wrestling with base contracts now take just days to implement core math. This represents a fundamental shift from V2's approach, which assumed developers could make slight math adjustments while base contracts handled complexity—a model that didn't work in practice.