Balancer V3 has been launched, in partnership with Aave to introduce Boosted Pools. Balancer V3 aims to optimize liquidity, provide new developer tools, and drive trading volume growth. Through its collaboration with Aave, Balancer V3 introduces 100% Boosted Pools that combine its automated market maker technology with Aave's yield market infrastructure. Aave is the main partner for this upgrade, with additional partners joining in due course. This integration allows pools to merge the yields from the exchange and lending markets into an efficient position. Boosted Pools offer a passive liquidity solution, allowing liquidity providers to optimize returns without active management. Balancer V3 also introduces custom pool types and a Hooks Framework to accelerate the building of AMMs and expand the capabilities of existing pools. Balancer V3 has attracted interest from DeFi protocols including Gyroscope and QuantAMM.

Decentralized exchange protocol Balancer has launched its V3 upgrade, designed to optimize liquidity, provide new developer tools and drive trading volume growth.Balancer V3 introduces 100% Boosted Pools, combining its permissionless automated market maker technology with DeFi lending protocol Aave’s yield market infrastructure. Aave is the leading launch partner for the upgrade, with others expected to follow suit. The integration enables the pools to merge yield from swaps and lending markets into one efficient position.“Aave’s integration with Balancer v3 is a milestone for both ecosystems,” Balancer co-founder Fernando Martinelli said. “Together, we’re delivering a liquidity solution that’s efficient, scalable and accessible for everyone in DeFi.”Boosted Pools offer a passive liquidity solution that directs all underlying capital to external yield markets while maintaining liquidity for swaps, the team explained in a statement shared with The Block. With a single click, liquidity providers can optimize returns and easily access DeFi's most efficient markets without requiring active management."By combining Aave's and Balancer's strengths, the new Aave V3 Boosted Pools empower users with enhanced capital efficiency and simplified yield generation,” Aave Labs founder Stani Kulechov said. “Users earn maximum returns, seamlessly access both supply and swap functions and enjoy a smooth user experience with minimized gas costs."Balancer supports automated portfolio management and trading of crypto assets across Ethereum and other EVM-compatible blockchains. Its modular design enables DeFi projects like CoW Swap and Xave to build custom pools tailored to their needs. The V3 upgrade aims to build on this by eliminating unnecessary complexity and enabling developers to innovate faster, the team said.New features include custom pool types to make building AMMs faster and more accessible and a Hooks Framework to extend the functionality of existing pools.According to the team, examples of hook use cases include dynamic liquidity management to make real-time fee adjustments, yield optimization or automated rebalancing in specific market conditions, and tailored pool behavior to enable customized parameters for unique trading strategies.StableSurge Hook is launching alongside Balancer V3, designed to protect stable asset pegs during periods of volatility while rewarding liquidity providers with higher returns.Balancer claims its V3 has already attracted interest from DeFi protocols, including Gyroscope, which is introducing asymmetric concentrated liquidity pools without requiring active management, and QuantAMM, which is developing onchain fund products using Balancer’s custom pool capabilities.Balancer V3 was audited by leading industry firms, including Trail of Bits, Spearbit and Certora, including manual code reviews and formal verification to ensure robust security. Balancer also held code-review competitions, inviting external developers to analyze the codebase, the team said.

Balancer V3 collaborates with Aave to launch Boosted Pools, optimizing DeFi liquidity.