Balancer has launched its v3 protocol on Avalanche, further expanding its presence in one of the most rapidly developing DeFi ecosystems.
This initiative is designed to create new liquidity opportunities for developers, liquidity providers, and institutional participants, reinforcing Avalanche’s (AVAX) status as a center for decentralized finance and tokenized real-world assets.
Initially unveiled in December, Balancer v3 includes a range of upgrades, such as Boosted Pools and a Hooks Framework that empowers developers to tailor liquidity behavior, as noted in a recent announcement.
These improvements offer liquidity providers enhanced control, facilitating innovative trading strategies and pool configurations.
Balancer’s governance decision
This initiative followed a governance vote that garnered unanimous support from the Balancer community. It brings the protocol’s liquidity optimization tools to a network increasingly adopted by institutions like BlackRock, Franklin Templeton, and KKR for asset tokenization.
“With the advanced liquidity mechanisms of Balancer v3 now operational, we anticipate a surge in DeFi adoption throughout the Avalanche ecosystem,” stated Eric Kang, Head of DeFi at Ava Labs.
The introduction of Balancer is set to enhance the capabilities of protocols such as Aave and BENQI, allowing them to tap into greater liquidity and explore new yield strategies. Currently, Aave holds over $500 million in total value locked on Avalanche.
“Introducing Balancer v3 to Avalanche underscores our dedication to providing efficient liquidity solutions across various ecosystems,” remarked Fernando Martinelli, one of Balancer’s co-founders.