Balancer

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.

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.

A new on-chain index fund has been deployed using Ondo's tokenized stocks, demonstrating practical applications of weighted pool technology. **What was deployed:** - 8-token pool on V3 - Includes: AAPL, NVDA, META, MSFT, GOOGL, AMZN, TSLA + USDC - Self-rebalancing mechanism - No traditional fund manager required **Key features:** - Operates entirely on-chain - Automated rebalancing through weighted pools - Combines tokenized equities with stablecoin liquidity This deployment shows how tokenized securities can function as programmable, accessible financial products without intermediaries.

**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 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.

Balancer has integrated with Merkl to offer incentive campaigns for liquidity providers. **Key Details:** - Access Merkl campaigns directly through the [Balancer protocol page](https://app.merkl.xyz/protocols/balancer?chain=143) - Campaigns are available on chain ID 143 - Merkl provides a platform for distributing rewards to liquidity providers **What This Means:** Liquidity providers on Balancer can now participate in targeted incentive programs through Merkl's distribution system. This integration aims to attract more liquidity to specific pools by offering additional rewards beyond standard trading fees. Visit the campaign page to explore available opportunities and reward structures.

Balancer V3 is now live on Monad, bringing programmable liquidity infrastructure to one of the fastest EVM chains. **Key deployments:** - syzUSD/AUSD stable pool combining [Yuzu Money](https://balancer.fi/pools/monad/v3/0xc71c30914bc7790218b1adee782ba307b7867b08)'s DeFi-native stablecoin - AUSD/USDC/USDT0 three-token [boosted pool](https://balancer.fi/pools/monad/v3/0x2daa146dfb7eaef0038f9f15b2ec1e4de003f72b) stacking swap fees on lending yield - 80/20 project token/stable [pool structure](https://balancer.fi/pools/monad/v3/0x8f4fb1985eb6d28b9e3f4ad116a6fff087b55f438) for capital efficiency **Why it matters:** Monad's 10,000 TPS and sub-second finality enable high throughput, but speed without deep liquidity creates slippage. Balancer's stable and boosted pools are designed to match this volume with capital-efficient infrastructure. The integration pairs Monad's parallel execution with V3's programmable liquidity across multiple pool types. Partners like Neverland Money and Fastlane are building on this foundation, with more lending market integrations coming.

**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.

**Standard AMMs weren't designed for pegged assets.** When swapping stablecoins or liquid staking tokens on traditional automated market makers, you pay unnecessary slippage costs—even though these assets should trade near 1:1. **Stable pools solve this problem through amplified mathematics.** By concentrating liquidity around the parity price range, they enable: - Larger swap sizes with minimal price impact - Tighter 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**—making them both pioneers and the endgame solution for pegged asset trading. For three stablecoins all tracking the same dollar value, StableSwap math puts liquidity exactly where it's needed.

Balancer V3 has deployed a three-token stablecoin pool on Monad, combining AUSD, USDC, and USDT0 in a single liquidity pool. **Key Features:** - First three-stablecoin pool enabled by Balancer V3 technology - Provides deep liquidity for AUSD stablecoin - Combines swap fees with lending yield for liquidity providers - Operates as both a stable and boosted pool The pool is now live and accessible at [balancer.fi](https://balancer.fi/pools/monad/v3/0x2daa146dfb7eaef0038f9f15b2ec1e4de003f72b). This deployment showcases V3's capability to handle multi-token stable pools, offering traders tighter spreads and liquidity providers additional yield opportunities beyond traditional two-token pairs.