Gauntlet is bringing dynamic-fee pools to Balancer.
Dynamic-Fee Pools Coming to Balancer
Balancer is introducing dynamic-fee pools.
The DeFi keystone is partnering with Gauntlet, a simulation platform for on-chain risk management. Using techniques developed in algorithmic trading, Gauntlet’s involvement in the automated market maker will optimize returns for Balancer V2 liquidity providers.
Making adjustments to trading fees means that liquidity providers can be paid fairly according to the current market conditions, rather than earning a fixed price. Fernando Martinelli, CEO at Balancer, said of the update:
“It’s a privilege for Balancer Protocol and its liquidity providers to be able to tap on the galaxy brains of the Gauntlet team to maximize pool returns. The idea of dynamic-fee pools has been top of mind for Balancer for a long time. It is better for all stakeholders for fees to constantly adapt to the market conditions.“
He also suggested that fixed-fee pools may one day be a dated format for automated marker makers, drawing a comparison to taxis and ride-sharing apps. Gauntlet’s COO John Morrow also shared his enthusiasm for working with the Balancer team. He said:
“Balancer’s vision for their V2 pools is perfectly suited for our simulation platform. We’re looking forward to launch, but we’re even more excited for what comes after – our optimization platform gets smarter as we incorporate more live data.”
Optimizations are a key point of focus for automated market makers due to the competitive nature of the market. Attracting sufficient …
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