Custom Pool Types

With Balancer Technology, the Beets DEX is free from the limitations of a single AMM design and supports multiple pool types, allowing it to evolve and define the unique needs of a rapidly growing market.

StablePools#

Stable pools adopt StableSwap AMM, popularized by Curve. This design enables larger trades with minimal price impact, with prices determined by pool balances, the amplification parameter (A), and swap amounts.

Ideally, stable assets would always trade 1:1, following a linear (Constant Sum) curve. However, if one asset loses its peg, this model would cause the pool to drain entirely. To prevent this, the pool must adapt to uncorrelated asset trading rules, best handled by the Constant Product curve.

Stable math combines these curves to allow low-slippage trades while adapting to price changes. The amplification parameter (A) determines how closely the curve mimics Constant Product (A=0) or Constant Sum (A→∞), ensuring efficient liquidity management.

Rate Provider Integration for Yield Bearing Assets#

This Rate Provider is a specific contract that accounts for the slow appreciation in the value of Yield Bearing (YB) tokens. In a typical stable pool without a rate provider, the two tokens trade at 1:1. Liquidity providers lose out on the yield generated by these tokens, as it is leeched out due to the activity of arbitrage traders.

Beets navigates this problem by integrating a rate provider contract that constantly updates the ratio between the two assets upon any swap. Instead of assuming a 1:1 ratio, the rate provider queries the blockchain and constantly updates to the correct ratio, ensuring LPs maintain exposure to Yield appreciation.

StablePool PMF#

• Efficient Stable Asset Swaps with Low Slippage: StablePools optimize for deep liquidity and minimal price impact using StableSwap math, ensuring efficient, low-slippage trading for stable assets while adapting to de-pegging risks.

• Yield Optimization for Liquidity Providers: By integrating Rate Provider contracts, StablePools prevent yield leakage from Yield Bearing (YB) tokens, ensuring LPs retain their fair share of accrued yield while maintaining stable liquidity.

• Dynamic Liquidity Management for Market Resilience: The amplification parameter (A) enables StablePools to dynamically adjust between Constant Sum (1:1 swaps) and Constant Product (uncorrelated trading), ensuring better capital efficiency and resilience in volatile conditions.

Weighted Pools#

Before weighted pools, liquidity pools were limited to a 50/50 split between two assets. Weighted pools broke this constraint, allowing up to eight assets with customizable weights, revolutionizing on-chain indices and portfolio management.

Weighted pools extend the constant product AMM model (x * y = k) by incorporating variable weights for each asset. Each token’s balance and weight determine its share of the pool, maintaining a constant value (V).

With every trade, token prices shift slightly, incentivizing traders and arbitrageurs to rebalance the pool while generating fees. This design flips traditional index funds—users aren’t paying for portfolio management; they’re getting paid to hold assets in chosen ratios.

Weighted Pool PMF#

• Flexible Liquidity & Customizable Portfolio Management: Weighted Pools remove the 50/50 constraint, allowing up to eight assets with customizable weights, making them ideal for on-chain indices and dynamic portfolio management.

• Optimized Governance Tokenomics with 8020 vs. Single Staking: The 8020 model revolutionizes governance tokenomics by utilizing 8020 Balancer Pool Tokens (BPTs) instead of staking the native token itself. This approach allows for active participation in swaps, increasing liquidity as staked tokens grow, unlike single-sided staking, which removes liquidity from circulation. The 8020 model consolidates incentives into one pool, reducing slippage, enhancing governance efficiency, and unlocking deeper liquidity, while eliminating the need for fractionalized incentives across multiple markets.

• Passive Yield Generation for Liquidity Providers: Unlike traditional index funds where users pay for portfolio management, Weighted Pools flip the model—LPs earn trading fees while maintaining diversified exposure, turning passive holding into a yield-generating strategy.

Elliptical Concentrated Liquidity Pools#

Elliptic CLPs (E-CLPs), built by Gyroscope, allow trading along the curve of an ellipse. Like other Concentrated Liquidity Pools, E-CLPs concentrate liquidity within price bounds but, unlike uniform distributions, offer more flexibility with asymmetric liquidity.

E-CLPs have two key properties: price bounds and an uneven liquidity profile. These features enable highly customizable liquidity profiles, enhancing capital efficiency in expected trading ranges. The elliptical curve allows for asymmetric liquidity, making it adaptable to various trading curves, including Stableswap or constant product. Price bounds further optimize capital efficiency by limiting liquidity to an expected trading range.

E-CLP PMF#

• Simplified, Passive Liquidity Management: E-CLPs provide passive liquidity management by allowing the pool deployer to set price bounds at launch, eliminating the need for users to monitor or adjust parameters, creating a seamless experience similar to traditional pools with the efficiency of Uni V3.

• Highly Customizable Liquidity Profiles: With an elliptical curve, E-CLPs offer flexible, non-uniform liquidity profiles, enabling pool creators to design liquidity areas with varying price impacts and efficiently accommodate LST growth and stablecoin peg protection, reducing slippage.

• Improved User Experience & Efficiency: E-CLPs focus liquidity in areas of high utilization without requiring constant adjustments, ensuring that users can trade with minimal slippage while enjoying a simplified, efficient interface akin to Balancer stableswap pools.

Boosted Pools#

Boosted Pools route 100% of underlying pool liquidity to external yield markets to generate additional rewards while ensuring all assets remain available to facilitate and earn rewards from swaps.

While not tied to a specific AMM model, they often use Stable Math due to its efficiency with highly correlated assets. For example, StablePools can include assets like Aave's yield-bearing DAI (aDAI), USDC (aUSDC), USDT (aUSDT), or Morpho Vault assets like Steakhouse USDC (steakUSDC). The Balancer BatchRouter efficiently handles trades between these assets, ensuring gas-efficient swaps without unnecessary wrapping or unwrapping.

Any ERC4626-compliant token can easily be added to a boosted pool and swapped on Beets.

Boosted Pool PMF#

• Simplified Yield Generation: Boosted Pools simplify yield generation by offering passive exposure to AMM swap rewards and lending market interest within a single position, allowing liquidity providers to amplify their rewards without the need for active management. This streamlined approach reduces complexity while enhancing capital efficiency.

• Optimised DAO Incentive Structure: Boosted Pools provide an optimized structure for protocols to direct liquidity incentives to a single pool, driving token liquidity growth. This enables DAOs and ecosystems to scale liquidity in both DEXs and lending markets, creating a more unified incentive system that supports token utility and enhanced liquidity efficiency.

• Network Symbiosis: Boosted Pools simultaneously grow two critical liquidity markets—DEXs for permissionless swaps and lending markets for permissionless loans. This means that for every $1 in a Boosted Pool, the network's metrics increase by $2.