screenshot of the ui

balancer - introduction of weighting

By ahinga | The Art of LPing | 17 Dec 2023


shortly after the launch of uni-v1 i became aware of the balancer protocol.

as with uniswap, it was quite overwhelming at first sight. it was somehow similar, but you now had far more options. it was now possible to provide liquidty not in equal amounts, but rather in fixed percentages and even with more than just two tokens. the creator of the pool had far more options when launching a new pool than before and so it became more complex.

it got really famous during the good old yfi days, where in order to participate to farm, you had to provide liquidty in the yfi-dai pair weighted at 1/99% or another one. the described one was the damous pool2 if i remember correctly...

there was a flawless migration of the contract, and later on they transformed into a ve3,3 model where it is now.

it turned out to be a solid lego block within the space and was ported numerous times into the differnet chains over time.

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The Art of LPing
The Art of LPing

in this blog i will take a look a liquidity provision now and how it evolved over the years with hopefully some useful tips and tricks.

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