We are excited to announce our partnership with @gauntletnetwork to maximize returns for Balancer V2 Liquidity Providers. This partnership will make available long-awaited dynamic-fee AMM pools to Balancer LPs.https://t.co/JffgmgFi5a
— Balancer Labs (@BalancerLabs) March 23, 2021
Gauntlet is a simulation platform for on-chain risk management. The team at Gauntlet has been tapped many times in the past by the largest DeFi protocols to perform sensitive analysis and simulations.
Gauntlet will utilize battle-tested techniques from the algorithmic trading industry to help Balancer manage risk, capital efficiency, and rewards. For the Balancer V2 pools, Gauntlet will be empowered to make protocol parameter optimizations, starting with trading fees. These fee-optimized pools powered by Gauntlet will be a core component of the Balancer V2 launch.
“It’s a privilege for Balancer Protocol and its liquidity providers to be able to tap on the galaxy brains of the Gauntlet team to maximize pool returns. The idea of dynamic-fee pools has been top of mind for Balancer for a long time. I believe fixed-fee pools won’t be able to compete with dynamic-fee pools just like taxis can’t compete with ride-sharing apps. It is better for all stakeholders for fees to constantly adapt to the market conditions.” – Fernando Martinelli (CEO, Balancer)
The Balancer team views this as the start of a healthy partnership that should eventually spread across the crypto ecosystem as more firms & individuals look to contribute to the real-time optimization of pool parameters on Balancer.