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The Staked aTokens proposal and Boosted Pools could revolutionize the DeFi landscape by increasing capital efficiency and liquidity, potentially creating a strong stablecoin contender and significantly boosting the total value locked (TVL) for Aave and Balancer. Boosted Pools, composed of Phantom BPTs and yield-bearing aTokens, offer a unique, risk-averse solution for liquidity providers (LPs) to increase yield, even in the absence of trading volume.
The discussion primarily revolved around the new Staked aTokens proposal and its potential impacts on Balancer, Aave, and GHO, as analyzed by Tnorm from the Messari Governor team. The proposal, seen as a critical part of Aave and Balancer's long-term strategies, could allow Balancer liquidity providers to use their liquidity pool tokens as collateral. This could pave the way for a go-to-market strategy for GHO that doesn't rely on Aave-native incentives. Instead, it would use Aave-held veBAL to incentivize Balancer LP collateral and control GHO borrow rates to boost GHO liquidity. If successful, this could significantly increase the total value locked (TVL) for Aave and Balancer, potentially creating a strong stablecoin contender built on capital-efficient liquidity from these two DeFi giants1.
Tnorm also highlighted the relevance of Boosted Pools on Balancer for Aave. These pools can increase capital efficiency for depositors by sending idle tokens to lending markets to accrue interest. Unlike Balancer’s staBAL3-USD pool, Boosted Pools can still generate yield even in the absence of trading volume, thanks to over 70% of the pool’s assets being yield-bearing aTokens. Boosted Pools also provide greater swap efficiency as they are composed of Phantom BPTs, which reduce the costs of minting and burning LP tokens. The bb-a-USD meta pool, the third largest pool on Balancer with over $122 million TVL, is an example of a Boosted Pool. These pools offer a unique, risk-averse solution for LPs looking to increase yield1.
In conclusion, the Staked aTokens proposal and the concept of Boosted Pools could potentially revolutionize the DeFi landscape by increasing capital efficiency and liquidity, and creating a strong stablecoin contender. The success of these initiatives could significantly increase the TVL for Aave and Balancer, marking a new era of growth for these platforms.
Posted a year ago
Last reply a year ago
Summary updated 2 months ago
Last updated 09/12 13:53