Balancer v3 is expected to launch in late November / early December. You can find the current state of Balancer v3 here, and the accompanying documentation here.
This page aims to provide partners with an overview of certain v3 features and to kickstart discussions on how Balancer can support you with them.
Peg protection of yield-bearing assets.
Let’s say there’s an LRT-ETH pool. This pool is meant to be 50% LRT and 50% ETH.
Then one day, the wind blows, CT gets nervous about the LRT, and people start selling their LRT for ETH, increasing the amount of LRT in the pool.
With the StableSurge Hook, pools can set a threshold, for example 10%. If this pool gets more than 10% imbalanced, the surge fee will kick in, taxing any sellers that hurt the peg. At the same time, buyers who help the peg only pay the regular base fee.
This aligns incentives between liquidity providers, who now earn increased fees, and projects that want to keep their assets pegged.
Additional yield for Balancer LPs while providing additional liquidity to trusted-third party platforms.