Balancer pioneered the concept of programmable liquidity with customizable pool weights and compositions. From simple weighted pools to sophisticated boosted pools that earn yield on idle assets, Balancer offers LP strategies unavailable anywhere else.
Pool Types
Weighted Pools
Custom ratios (e.g., 80/20 ETH/USDC) reduce IL on the higher-weighted asset.
Stable Pools
Like Curve, optimized for pegged assets with minimal slippage.
Boosted Pools
Idle liquidity automatically deposited in lending protocols for extra yield.
Key Takeaways
- Weighted pools let you control IL exposure
- 80/20 pools reduce IL by 50% vs 50/50
- Boosted pools earn yield on idle capital
- veBAL system mirrors Curve’s vote-escrow model
- Great for portfolio-like LP positions