The collaboration with Aave as the first iteration of the Boosted Pools launch is a natural fit and there are various levels of Boosted Pool innovations that lead to concrete results, deeper liquidity, more efficient integrations for liquidity, and higher yields.” Reducing Costs AMM Pools typically hold wrapped tokens of yield-bearing assets to increase capital efficiency and improve the overall pool yield. But the wrapping and unwrapping of these tokens are often too expensive to do during swaps on ethereum blockchain, now avalible on Avalanche and Polygon blolckchain.
To solve this problem, Balancer Labs collaborated with Aave, effectively reducing the costs of wrapping and unwrapping tokens during a swap while leaving the task to arbitrageurs, who are correctly incentivized to do it. A Game Changer Commenting on the partnership, Aave founder and CEO Stani Kulechov said: “The collaboration with Balancer for the launch of Aave Boosted Pools is a prime example of incredible innovation happening in DeFi.
I have been following Balancer’s V2 launch closely and Boosted Pools offer users deeper liquidity and more access to Aave. With the help of Balancer, we look forward to providing users a seamless earning experience.” Balancer noted that Boosted Pools could be a game-changer, Balancer noted that Boosted Pools could be a game-changer for traders and liquidity providers. It allows users to deploy a percentage of the, Boosted Pools allows users to deploy a percentage of the liquidity in a pool to lending platforms like Aave and earn more yield.