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Alisa Davidson
Published: April 11, 2025 at 9:00 am Updated: April 11, 2025 at 8:06 am
Edited and fact-checked:
April 11, 2025 at 9:00 am
In Brief
Balancer has launched Balancer v3 on Avalanche, expanding its liquidity infrastructure and integrating with Avalanche’s ecosystem to reach a broader user base.
A decentralized and permissionless platform known for its contributions to Automated Market Maker (AMM) innovation, Balancer announced the launch of Balancer v3 on the Layer 1 network Avalanche. This deployment extends Balancer’s liquidity infrastructure to a broader user base by integrating with Avalanche’s expanding ecosystem. With this move, the platform aims to provide enhanced tools and efficiencies for traders, liquidity providers, and institutions exploring diversified opportunities in decentralized finance (DeFi).
“Balancer V3 offers a wide range of cutting-edge AMM solutions. Balancer’s core product, V3, is a DEX that enhances capital efficiency across the Avalanche ecosystem. It features boosted pools powered by lending markets such as Aave, various concentrated liquidity solutions, hooks like StableSurge, classic weighted pools, and infrastructure for building custom AMMs to support growth within the Avalanche ecosystem,” ZenDragon, Head of Business Development at Balancer, told Mpost.
“The core team at Balancer views Avalanche as an innovative chain within the Web3 ecosystem, with strong growth potential in both DeFi and the RWA space. As Avalanche continues to build popularity and liquidity, Balancer is positioned to offer sustainable decentralized exchange options for both LPs and traders,” ZenDragon added.
Launched in December, Balancer v3 marks an evolution of the protocol’s permissionless AMM platform, introducing upgrades intended to enhance both user experience and technical performance in DeFi. The release brings features aimed at improving liquidity efficiency and supporting developer innovation, including fully Boosted Pools, a modular Hooks Framework, and collaborations such as a key integration with lending platform Aave.
By deploying Balancer v3 on Avalanche, the protocol expands its offerings into a blockchain ecosystem known for its fast growth in both DeFi and tokenized real-world assets. This integration gives liquidity providers (LPs) more flexibility in managing their capital, enabling diverse asset strategies and more dynamic pool configurations. These enhancements are designed to foster a broader range of use cases for developers and ecosystem participants.
Balancer v3 Launch On Avalanche Boosts DeFi Growth, Unlocks New Liquidity And Yield Opportunities For Protocols Like Aave And BENQI
The decision to launch on Avalanche followed a community governance proposal, which received unanimous support. Balancer’s move aligns with the increasing adoption of Avalanche by major financial institutions, including BlackRock and Franklin Templeton, who use the network for asset tokenization. As interest in tokenized assets grows, the demand for advanced liquidity infrastructure—such as what Balancer offers—continues to rise.
“Balancer has been a core pillar of DeFi innovation, and its expansion of v3 to Avalanche brings even greater liquidity efficiency to a rapidly growing on-chain economy,” said Eric Kang, Head of DeFi at Ava Labs, in a written statement. “With Balancer v3’s advanced liquidity mechanisms now live, we expect to see a variety of DeFi adoption across the Avalanche ecosystem,” he added.
The launch of Balancer v3 on Avalanche will further accelerate growth of the network’s DeFi ecosystem, with its multi-asset pools and customizable hooks providing more flexible liquidity solutions and tools to optimize market making for these institutions, as well as expanded opportunities for liquidity providers. Some of the biggest DeFi protocols on Avalanche, such as Aave and BENQI, will be able to tap deeper into liquidity pools and access new yield-generating opportunities through Balancer v3. Aave, with a total value locked (TVL) of $501.03 million on Avalanche, has become a key player in the network’s lending ecosystem.
As more institutions leverage Avalanche to move on-chain, Balancer v3’s advanced liquidity mechanisms will provide liquidity providers and developers with more efficient ways to deploy capital. It’s a collaboration that highlights Balancer’s growing role in laying the foundations for the next wave of DeFi innovation, helping the ecosystem to evolve to support both cryptocurrency and traditional financial markets.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa Davidson
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
More articles
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