Announcing the new incentivised VISION liquidity pool on Balancer
We are excited to announce that we have a new, incentivized pool on the Balancer platform! The Balancer team was kind enough to work with us to create this pool which will be replacing the current Quickswap and Cometh pools that are used for the Pro membership LP boost on Polygon. Balancer has allocated 100 BAL tokens in rewards for the first week on this new pool! We would like to thank the team at Balancer and are happy to share that this is just the beginning of our collaboration!
We are aiming to move all of the liquidity over to the new pool by the end of March. We strongly advise to move liquidity over as soon as possible because access to the Pro version via the Quickswap and Cometh pools will eventually be shut off.
Here is the link to the new VISION/wETH pool on Balancer.
Important takeaways
- This is not a 50/50 pool, it is weighted 80% VISION and 20% ETH
- The LP bonus will be slightly higher to encourage migration
- The fees on the pool are higher (5%) to give more advantage to LP’s
- Liquidity mining programs are updated weekly by Balancer, you can check them here
- Bonus tracking on Ethereum is not affected and remains available through the Uniswap pool
More info about uneven (80/20) Balancer Pools
Uneven weighted pools are an innovative take on automated liquidity for decentralized exchanges. These pools can limit the impact of impermanent loss compared to a 50/50 pool as seen in Uniswap V2. This can enable a few different use cases like bootstrapping liquidity for new projects that mostly hold their native token in their treasury. It can also be used as a component in bullish portfolios thanks to the selective token exposure that can be constructed.
While uneven pools can help prevent impermanent loss, they are often less efficient in terms of slippage when it comes to the trading activity of the pool. The benefit of uneven pools is the ability to have flexibility with the different parameters of a pool given the intended use.
Conclusion
Providing liquidity is a great way to earn some income on tokens sitting in your wallet. You do have to be careful when providing liquidity, as sharp price increases or decreases can have a huge impact on the performance of your position. To read more about the risks, we highly recommend reading this post. We suggest using APY.Vision to keep a close eye on your positions to know when to remove liquidity during times of extreme price volatility.
APY.Vision does not give investment advice and always insists that you do your own research. Read our full Legal Disclaimer.
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