Balancer’s Governance Execution
The project, which has been one year in development, will see the automated market maker (AMM) switch its governance execution to a community multi-sig.
This will see new signers like Jake Brukhman of CoinFund, David Hoffman with Bankless, Alexander Langer of Inflection, and eight more signers forming the new community.
Alongside this, the upgrade comes with a new clean user interface to make it simpler for users to execute trades. Also, the V2 offering will see users enjoy lower gas fees, faster exchanges, and improved liquidity – major challenges the Ethereum network is hoping to address with its ETH 2.0 launch.
Speaking about the expected gas savings the upgrade will facilitate, Balancer Labs said users would enjoy a 40% gas reduction fee for simple swaps. They will also get a 53% gas reduction fee if they execute trades with internal balances.
Balancer Labs also noted that all liquidity pools would be managed within a single vault in the new V2.
However, Balancer Labs says users should continue using the V1 pool since it provides the best prices. This is until enough liquidity is moved to the new V2 protocol. The development team notes that once enough liquidity is in the latest version, all trades would be routed through its Protocol Vault so users will enjoy low gas costs and better pricing.
Concerning V2 liquidity mining, Balancer Labs said liquidity providers (LPs) would switch to a new and trustless program to mine its native token BAL. This will see LPs stake positions in different pools to receive BAL. Balancer said these pools are divided into three tiers, and each tier slot will be getting a fixed amount of BAL token per week.
DeFi Is Booming
In the run-up to its V2 launch, Balancer Labs highlighted the key contributions of a few industry players and said it had signed agreements with a few. Some of its launch partners are Gnosis which handled its user experience focusing on price, UX, and transparency. Others are Ocean Protocol, Element Finance, Aave, Gyroscope, PowerPool, Enzyme Finance, and Techemy Capital.
AMMs like Balancer Labs are hugely popular in the DeFi sub-sector, given their competitive prices and user-friendliness. In a new report by DeFi data aggregator DeFi Pulse, the UniSwap rival has racked up over $2.77 billion total value locked (TVL) in the last 90 days.