30 August 2026
Balancer Protocol Launches V2 of its Automated Market Maker
Leading automated market maker, Balancer has launched version 2 of its protocol, which promises faster speed, lower costs and improved liquidity.
In addition to this, Balancer’s backend will also provide more efficient routing for trades through “Protocol Vault.” The platform claims this upgrade will reduce gas costs and produce better pricing mechanisms. Expected gas costs would be 40% lower in version 2 – which jumps to 53% with internal balances.
Balancer Labs, the development arm behind the AMM, has also announced a partnership with DeFi protocol Gnosis for providing an improved user experience for traders in terms of price, user experience and transparency.
Automated market makers are smart contracts that generate a liquidity pool of tokens, which can be traded automatically through a programmable algorithm instead of an order book. This allows assets to be swapped automatically.
AMMs has become a necessity of the rapidly growing DeFi industry, which, according to industry estimates, has surged eightfold since the start of 2021. Balancer’s native BAL token has also set multiple record highs this year due to positive protocol integrations, gas fee revision and a surge in DeFi trading activity.
The speculations of a possible Coinbase listing has also contributed to BAL’s tremendous growth. Currently, BAL is the 31st largest DeFi protocol by market cap, as per Coingecko.
Disclaimer: The author’s views and opinions are for informational purposes only and do not constitute financial, investment, or other advice.
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