Balancer V2 — On‑Chain AMM & Vault Protocol

Balancer V2 is a next‑generation AMM and protocol for programmable liquidity on Ethereum and EVM chains. Below is a concise official overview, features, and how to get started safely.

What is Balancer V2?

Balancer V2 redesigns the classic AMM by introducing a single on‑chain Vault that holds assets and enables gas‑efficient swaps, plus Asset Managers that can earn yield on idle assets. Pools are highly configurable — weighted pools, stable pools, and custom pool types supported by the protocol.

Key components

  • Vault: Central asset hub for swaps, shares, and protocol operations — improves gas and composability.
  • Pools: Configurable pools (weighted, stable, and customizable AMMs) that define swap logic and fees.
  • Asset Managers: Optional modules that earn external yield while assets remain available for swaps.
  • Protocol Fees & Governance: Fee collection and BAL token governance controls parameters and upgrades.

Why use Balancer V2?

  • Flexible pool design for custom AMM behavior and multi‑asset pools.
  • Improved capital efficiency via stable pools and yield integration.
  • Integration with wallet providers, aggregators, and DeFi composability tools.

How to interact (brief)

  1. Open the official Balancer site via the single official link in the sidebar.
  2. Connect a supported wallet (MetaMask, WalletConnect, or recommended wallets).
  3. Use the Swap interface or explore Pools to add liquidity.
  4. When providing liquidity, review pool composition, fees, and impermanent loss risks.
  5. For devs: consult the docs and SDKs for integrations, subgraph, and Vault API endpoints.

Security & best practices

  • Always use the official site and confirm the domain (balancer.fi).
  • Check pool smart contract addresses in the docs before depositing funds.
  • Use hardware wallets for large deposits and verify transactions onchain.
  • Audit reports and governance proposals are available—review them when in doubt.

Note: Pool parameters, rewards, and Asset Manager strategies change over time. Always read official docs and pool metadata before committing funds.