Just like the Curve stablecoin pools, where holders of stablecoins can provide liquidity and earn fees on swaps, the Balancer Labs pool will allow ERC-20 token holders to invest in existing liquidity pools of up to 8 coins, or make their own custom coin pools and earn fees.
"Balancer allows pools with up to 8 tokens, with any custom %-distribution of value for each of them. Anyone can now create their own self-balancing index fund, or invest in someone else’s."
Balance Labs has raised 3 million USD and from what I have read on their Discord the protocol should be launching very soon.
If you have a Metamask wallet, you can test the beta version on the Kovan testnet https://kovan.pools.balancer.exchange/
Hi
So does pooling your stable coins here provide liquidity for a Dex? This sounds like a decentralized solution to the inherent centralization of exchanges? Does this facilittate Peer to Peer trading?
Thanks, I am trying to understand the various rationales for this business model.
Basically yes. You can either swap on Balancer, or use an aggregator like 1Inch which also routes trades through Balancer and other liquidity pools.