While AMMs (automated market makers) represent a DeFi innovation in themselves, research and experimentation have pushed the possibilities well beyond the limitations of the classic x*y=k constant product formula originally used by LPs. One of the main innovators in this field remains Balancer - from multi-token pools with different weights replicating TradFi indices, to dynamic ratios that can be changed under certain conditions preventing further imbalances, Balancer set in place user protection measures. With the recent release of Balancer V3, developers get more freedom to experiment with AMMs, introducing features such as hooks that enable limitless pool customisation, boosted pools that combine LP fees with yield farming from money markets, and many more.

Topics covered in this episode:

Balancer’s inception
The evolution of AMMs
Balancer vs. other AMM competitors
Fungible vs. non-fungible liquidity
Balancer v3
Boosted liquidity pools
DevEx and hooks in Balancer v3
Preventing stablecoin depegs
MEV mitigation & CoW AMM
Scaling to L2s
Gyroscope & QuantAMM
Balancer’s B2C & B2B solutions

Episode links:

Sponsors:

Gnosis: Gnosis builds decentralized infrastructure for the Ethereum ecosystem, since 2015. This year marks the launch of Gnosis Pay— the world's first Decentralized Payment Network. Get started today at - gnosis.io
Chorus1: Chorus1 is one of the largest node operators worldwide, supporting more than 100,000 delegators, across 45 networks. The recently launched OPUS allows staking up to 8,000 ETH in a single transaction. Enjoy the highest yields and institutional grade security at - chorus.one

This episode is hosted by Friederike Ernst.

Balancer: Custom AMMs and Liquidity Solutions - Fernando Martinelli

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