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May 14, 2021, 8 tweets

Why @BalancerLabs will step into the spotlight as Defi's most Flexible and Efficient AMM [Thread]

$BAL was one of the first AMM's to provide liquidity through pools weighted by multiple tokens, unlike competitors such as $UNI offering 50/50 currency pairs 1/n

The protocol is backed by several leading funds, most notably @AlamedaResearch, @DeFianceCapital and @placeholdervc, playing a central roll in expanding their innovation further 2/n

The customizability of $BAL pools includes 6 pool variables and 3 pool types for liquidity providers to chose from, significantly more than traditional AMM's 3/n

A significant milestone took place this week with $BAL V2 being launched.

The largest upgrades include the protocol vault reducing gas fees, programmable AMM logic, and asset managers improving yields 4/n

$BAL V2 looks to improve a major issue with V1 (and competitors) which was high gas fees between pools. Through @BalancerLabs's new interface (balancer.fi), once migration is complete from V1 -> V2, a sample WETH to DAI swap can be at 40%-53% lower gas 5/n

Additionally, asset managers have been added as external contracts with full power of the pool's liquidity, generating yield for liquidity providers through investing idle tokens with $AAVE 6/n

Currently $UNI dominates the market in TVL and volume. We believe $BAL has significant upside through many new partnerships, but particularly with @gnosisPM, guaranteeing users better prices on trades beating DEX aggregators 7/n

To read our full exploratory report on @BalancerLabs, it is is available for free on our website:

Block49capital.com

$SUSHI $UNI $AAVE $BAL $MKR $COMP $YFI

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