Why Balancer Chose Monad's Rebuilt EVM Infrastructure
Why Balancer Chose Monad's Rebuilt EVM Infrastructure
🏗️ Why Monad's rebuilt EVM
Balancer deployed on Monad because the chain's rebuilt EVM architecture provides the infrastructure needed for capital-efficient DeFi at scale.
Key technical advantages:
- 10,000 TPS with sub-second finality
- Parallel execution handling institutional-scale volume
- Large blocks creating abundant block space
The deployment addresses a critical challenge: high throughput means nothing without deep liquidity. Monad's speed combined with Balancer V3's programmable pools creates infrastructure where trades execute fast without slippage eating into returns.
Tom from 0xFastLane breaks down the technical reasoning behind this infrastructure match.
Monad's parallel execution handles volume. But throughput without capital-efficient liquidity means slippage eats into every trade. Stable + boosted combination solves that friction ⚖️
Access the pool at: balancer.fi/pools/monad/v3… 80% project token. 20% stables. Better capital efficiency. This is how protocols scale liquidity on Monad.
More project tokens. Fewer stablecoins. Capital efficient liquidity. The DUST/AUSD 80/20 pool is live on @monad, providing liquidity for @Neverland_Money's token. Want to understand why are weighted pools are a capital-efficient way to sustain protocol liquidity? Read below 🧵
Fast execution demands efficient liquidity. That's why we're bringing Balancer V3 to @monad 💜 One of the fastest EVM chains with 10,000 TPS and sub-second finality is now powered by programmable liquidity. But what does that mean? 🧵
Monad built infrastructure for speed. Balancer brings infrastructure for liquidity. Follow @Balancer for launch updates and partner announcements.
Fast execution demands efficient liquidity. That's why we're bringing Balancer V3 to @monad 💜 One of the fastest EVM chains with 10,000 TPS and sub-second finality is now powered by programmable liquidity. But what does that mean? 🧵
This is where V3's programmable liquidity becomes critical. It brings three pool types built for different liquidity needs on high-throughput chains. Each designed to match Monad's speed while serving specific use cases. Here's how they work 👇
This is Balancer's infrastructure enabling a new layer of DeFi composability. More lending markets and integrations are coming (stay tuned 👀) Build on Balancer 🥷
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 🧵
Monad demands capital efficiency. This pool delivers. Explore the syzUSD/AUSD pool at: balancer.fi/pools/monad/v3… And don't forget to follow @Balancer for product updates and fresh new pools 🥷
The syzUSD/AUSD Balancer V3 pool is live on @monad! @YuzuMoneyX's DeFi-native stablecoin meets the high-performance EVM chain. Let's break down the mechanism that makes this work 🧵
Balancer V3 solves that. Our stable pools bring optimized liquidity that matches Monad's speed. Proven infrastructure ready for the volume this chain will generate. And it goes deeper:
Three-token stable AND boosted pool. This is what Balancer V3 was made for. Explore the AUSD/USDC/USDT0 pool on Monad 👇 balancer.fi/pools/monad/v3…
Three stablecoins in a single pool? V3 makes it possible on @monad. The AUSD/USDC/USDT0 pool is live, bringing deep liquidity to @withAUSD and stacking swap fees on top of lending yield. How it works 🧵
But high-throughput creates a new challenge: Speed without liquidity is like empty highways. Fast execution means nothing if pools can't handle the volume. 10,000 TPS demands deep, capital-efficient liquidity that can absorb serious trading activity without breaking.
To power this amazing set of features, Monad brings the infrastructure. 10,000 TPS + sub-second blocks provide a serious throughput. But speed without liquidity mean nothing. Balancer's capital-efficient stable pools match the volume this chain will generate.
Monad makes this possible at scale. Sub-second finality and parallel execution mean complex multi-token pools can operate without the latency or cost that would make this inefficient elsewhere. The infrastructure matches the ambition.
Monad rebuilt the EVM from scratch. Big blocks. Sub-second finality. Lot of block space. This is the infrastructure Balancer needed to deploy there. @TomFastlane from @0xFastLane breaks down exactly why 👇
Capital efficiency needs a chain that can keep up. @monad is that chain, and that's why Balancer and @Neverland_Money are building there. @alice_nvr explains it better in this clip from our Monad livestream 👇
The syzUSD/AUSD Balancer V3 pool is live on @monad! @YuzuMoneyX's DeFi-native stablecoin meets the high-performance EVM chain. Let's break down the mechanism that makes this work 🧵
Monad brings 10,000 TPS + sub-second blocks + parallel execution, enabling the kind of throughput that can handle institutional-scale volume. But high throughput alone, without capital efficiency, means trades slip, users leave, and ecosystems stall.
How Stable Pools Solve the Slippage Problem for Pegged Assets
**The Problem with Traditional AMMs** The classic constant product formula (x * y = k) works well for volatile pairs like wBTC/USDC, but creates unnecessary slippage for stablecoin pairs like GHO/USDC where both assets are pegged to $1. **The Solution: Blended Curves** Stable pools combine two approaches: - **Constant product (x * y = k)**: Steep curve, protective but high slippage - **Constant sum (x + y = k)**: Flat curve, zero slippage but fragile The blend adjusts dynamically based on pool balance, controlled by a single parameter called **A** (amplification factor). This creates efficient swaps for pegged assets while maintaining pool stability.
Why Stable Pools Beat Standard AMMs for Pegged Asset Swaps
**Standard AMMs create unnecessary slippage when swapping pegged assets** like stablecoins or liquid staking tokens. The problem? Their curves weren't designed for assets that move together. **Stable pools solve this with amplified mathematics** that concentrate liquidity around the 1:1 price range. This means: - Larger swaps with minimal price impact - Tight spreads for correlated assets - True capital efficiency where trading actually happens Unlike concentrated liquidity ranges (Uniswap V3-style) that can leave you exposed when assets depeg, **stable pools maintain some liquidity at every price point**. They pioneered concentrated liquidity and remain the optimal solution for pegged assets - even years after introduction. The result? Swapping three stablecoins tracking the same dollar value happens with the depth and efficiency the market demands.
Balancer LP Tokens Now Accepted as Collateral Across Major DeFi Protocols
**Major DeFi protocols now accept Balancer LP tokens as collateral** Rocket Pool, StakeWise, and TreehouseFi have integrated support for Balancer Pool Tokens (BPTs) as eligible collateral. This allows liquidity providers to: - Access liquidity without unwinding their positions - Continue earning fees and yield while borrowing against their LP tokens - Unlock capital that was previously locked in pools **How it works:** When you provide liquidity on Balancer, you receive BPTs - ERC-20 tokens representing your pool share. As fees accumulate and assets generate yield, your position value grows. Previously, accessing this capital meant exiting the position and forfeiting future earnings. With these new integrations, LPs can now use their BPTs as collateral in lending markets while maintaining their earning positions.
DeFi Oracles Now Support Complex Multi-Asset Token Pricing
**DeFi infrastructure reaches new milestone with oracle solutions for complex tokens** A longstanding challenge in decentralized finance has been resolved with the launch of oracles capable of pricing sophisticated multi-asset tokens. **The Problem** - Pricing tokens backed by multiple assets with dynamic weights was previously impossible - Value calculations required tracking yield-bearing token rates and shifting asset allocations simultaneously - This complexity prevented many DeFi protocols from supporting advanced token structures **The Solution** - New oracle systems are now live and operational - These oracles can handle the computational complexity of multi-variable pricing - Protocols can now integrate previously unsupported token types This development builds on recent advances in oracle transparency, where providers like DIA have introduced verifiable on-chain computation through rollup infrastructure, allowing protocols to audit entire data pipelines from source to smart contract.