In Brief:
- One of the most powerful use cases for MetaStable Pools is “nesting” other pools by holding their Balancer Pool Tokens (BPTs).
- MetaStable Pools are great for tokens with highly correlated prices.
Balancer announces its partnership with Lido to launch MetaStable Pools in a joint incentive program. MetaStable Pools have highly correlated prices, unlike Stable Pools.
One of the most powerful use cases for MetaStable Pools is “nesting” other pools by holding their Balancer Pool Tokens (BPTs). Hence it eases cheap swaps between their constituent tokens and those of the nested pool.
A user can use MetaStable Pool with StaBAL3-USD (made of DAI, USDC, and USDT) and NewUsdStable tokens to swap between NewUsdStable and any of the nested StaBAL3-USD tokens (DAI, USDC, USDT).
MetaStable Pools work well for tokens that gradually diverge in value. The Pools also offer further benefits to traders and liquidity providers.
MetaStable Pools also offer benefits to traders and liquidity providers. Liquidity providers for StaBAL3-USD do not need to worry about the potential volatility, security, or failure of NewUsdStable. This is because MetaStable Pools prevent the draining of underlying pool tokens.
MetaStable Pools help users of the Balancer Protocol list lessen liquid assets and prevent diluting existing pools.
Balancer along with Lido would facilitate trades between Ether and Staked Ether. This would offer liquidity for stakers securing the Ethereum Network.
Also Read: Gelato Network Brings Liquidity Management to the Zerion users
To drive liquidity further, ahead the pools will co-incentivise with LDO and BAL rewards. It would also offer users sufficient liquidity rewards to encourage participation.
They have allocated 2,500 BALs per week to the pool with an additional 25,000 LIDO per week for the first month. The first distribution of the stablecoins will take place on August 24th via Balancer’s claim portal.
