AMM DeFi protocol Balancer announced Monday that it had partnered with DAO-based staking platform Lido to introduce a MetaStable Pool (NASDAQ:POOL) incentive program.
MetaStable Pools are liquidity pools specifically designed to work with highly correlated (but not hard-pegged) tokens, like wrapped assets. Users will be able to create swaps between MetaStable pools and assets integrated with other liquidity pools, while benefiting from cheaper swap prices and eliminating the need for individual swap-specific stable pools. They will also prevent the dilution of liquidity from existing pools and increase maximum trade amounts, according to the release.