Balancer teams up with Gnosis to develop a ‘gasless’ Ethereum DEX


Balancer Labs, the leading automated market maker (AMM) in the Ethereum ecosystem, has partnered with Gnosis to develop a new decentralized exchange (DEX).

The crossover of the summer is coming.

Balancer x @gnosisPM have joined forces to provide the best DEX trading experience. ⚖️

Here’s what you need to know⬇ https://t.co/AanDBSUKPE.

– Balancer Labs (@BalancerLabs) 28. April 2021

The AMM balancer is already a de facto DEX, although it is used differently than Uniswap and SushiSwap. Balancer liquidity pools are increasingly used to support token sales based on bond curve mechanisms, as well as to reward LPs for providing long-term liquidity, especially when pegged to stable currencies such as the USDC.

The new Balancer Gnosis Protocol (BGP), as it is called, promises to shake up the defi landscape and give Uniswap a real competitor that combines the best of both worlds, namely DEX and AMM type balancers.

A fierce, like-minded competitor looks like.

The idea behind the Balancer-Gnosis Protocol (BGP) developed by the two teams is to combine the advanced storage system of Balancer v2 with Gnosis’ own pricing mechanism.

It also promised that BGP would set new standards for user interface, pricing and transparency. The new DEX system is based on a system that has become a hot topic in the Ethereum community in recent weeks: mineral extraction (MEV), which uses an auction system to obtain better prices.

MEV is a phenomenon that currently extracts value from up to 1% of all DEX transactions on Ethereum, passing value from users to miners or other arbiters, explains Martin Köpelmann, CEO of Gnosis.

He added: With BGP, and in particular with the Gnosis v2 protocol, we have developed an exchange protocol that protects users and ensures that the value stays with them.

DEX is scheduled to launch in mid-June, but PoC has already launched CowSwap (an acronym for Coincidence of Wants). Its greatest strength is its ability to support gasless transactions, with off-chain transactions and no network charges.

According to CowSwap, more than $390 million has been taken from users through front-end transactions by bots, which take advantage of the slack users allow in the transaction. However, CowSwap circumvents this problem by using the hard slip and can avoid the DAILY calculation altogether.

By working together, we can go beyond the competition – traditional funding – by providing unprecedented decentralization, transparency and value through our tools.
To participate, join our Discord!

Many more Balancer V2 launch partners will be available soonTM https://t.co/355xOPSfRF

– Balancer Labs (@BalancerLabs) 28. April 2021

Network costs

The infamous Ethereum network usage fees, which have been rising steadily for months, collapsed last week, helped by an increase in block space and a shift of traffic to scalable networks like Binance Smart Chain (BSC) and Polygon.

The introduction of BGP, if successful, will help to further reduce transaction costs and could bring the gig economy to levels not seen for over a year. Andre Cronje of Yearn Finance did a teaser on the 25th. April: If gwei returns to single digits, I might post one of four new logs, suggesting that his love affair with Ethereum might be renewed.

If the gwei hits single digits again, maybe I’ll post one of four new logs (five as of this morning, courtesy of Ben).

– Andre Cronje (@AndreCronjeTech) 25. April 2021

While it will take more than a gasless DEX, no matter how talented the development team, the alliance of Balancer and Gnosis will serve in an unexpected partnership to shake up the DEX landscape and could pave the way for a second Defy summer overshadowing the dizzying heights of 2020, when farming and degenerate auctions were all the rage.

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Balancer teams up with Gnosis to develop a ‘gasless’ Ethereum DEX

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