OlympusDAO Moves Liquidity Worth $50 Million to Balancer | HackerNoon

The principal purpose of this structure is to reduce the price effect of accessing $OHM through $DAI and $WETH. OlympusDAO, Balancer DAO, and Balancer Labs collaborated on this project.

Balancer's multi-token capabilities and variable weighting flexibility, for example, are being used to address liquidity fragmentation. The maximum treasury distribution will be $25 million $OHM, $12.5 million $DAI, and $12.5 million $ETH. Protocols are increasingly requesting that their token public auctions be conducted in OHM. However, there is currently insufficient OHM liquidity on the Balancer protocol to support this form of auction.

Security, adaptability, and capital efficiency are the foundations of Balancer V2. A constant product AMM is stiff, but an invariant AMM is flexible. While it is true that a 50/50 weighting between two tokens has the smallest relative price effect on swappers, not all cases are the same. The versatility of Balancer gives LPs the ability to create custom solutions for their specific use cases.

Another instance would be underutilized liquidity pools. In other words, given volume as a fraction of available liquidity, the price effect is less critical . In this case, pool weightings on Balancer might be tweaked to reduce IL and reserve upside while keeping the same volume at no expense to swappers.

The transfer of $OHM liquidity to the Balancer Protocol is a case study for any project that manages or incentivizes liquidity on a decentralized exchange. Balancer Weighted Pools' versatility and customization, together with the usability of Balancer Protocol products like LBPs, give a one-stop-shop solution for liquidity management. It is feasible to solve for more than only price effect, and this may be done in tandem with decreasing liquidity fragmentation.

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

US plans $50 billion wildfire fight where forests meet suburbiaThe Biden administration plans to significantly expand efforts to stave off catastrophic wildfires that have torched areas of the U.S. West by more aggressively thinning forests around areas called…
Source: mercnews - 🏆 88. / 68 Read more »

15 Under $50 Things on Amazon That Can Make Your Home Feel Extra Cozy - E! OnlineFrom plush rugs and throws to bedroom must-haves, we've rounded up some under $50 goodies that can make your home feel nice and cozy.
Source: enews - 🏆 466. / 52 Read more »

Microsoft Makes a Bold Move to Build the Metaverse With the Activision Blizzard Deal | HackerNoon'Microsoft Makes a Bold Move to Build the Metaverse With the Activision Blizzard Deal' by davidjdeal microsoft activision
Source: hackernoon - 🏆 532. / 51 Read more »

Mike Tyson Says No Fight Negotiations W/ Jake Paul, 'New To Me'Mike Tyson says he is NOT fighting Jake Paul ... after a report earlier today said they were in 'advanced talks' for a $50 million boxing match. Wo wo wo sounds to me like iron Mike Tyson is running scared Imagine MikeTyson gets knocked out by an unranked white guy jakepaul I’ll fight either of them for $50 million! Ok
Source: TMZ - 🏆 379. / 59 Read more »

OlympusDAO’s slide continues: OHM down 90% from all-time highOHM, the native token of the decentralized finance (DeFi) project OlympusDAO, is down more than 90% from its April 2021 all-time high.
Source: TheBlock__ - 🏆 464. / 53 Read more »

OlympusDAO Sheds 30% Triggered by Whale Sell-Off
Source: CryptoPanicCom - 🏆 563. / 51 Read more »