Balancer Labs & Gnosis Launch Balancer-Gnosis-Protocol (BGP)
Two of the most reputable teams in Ethereum launch a new DEX to deliver the best experience for traders
NEW YORK, NY / ACCESSWIRE / April 28, 2021 / Balancer Labs, one of the leading automated market makers (AMM), and Gnosis, a protocol suite for new decentralized finance market mechanisms, announced today the launch of Balancer-Gnosis-Protocol (BGP). This DEX will combine the new and improved Vault system of Balancer V2 with Gnosis Protocol's price-finding mechanism. This partnership is the first of its kind, with two of the most reputable teams in Ethereum partnering to deliver a new decentralized exchange which will deliver the best user experience to traders-across price, UX, and transparency.
The combination of Balancer Protocol asset managers and the capabilities of Gnosis Protocol can help market makers put their capital to work in the most efficient way. Through combining approaches, Balancer-Gnosis-Protocol (BGP) guarantees that users will get better prices on their trades by integrating all liquidity sources on Ethereum and using a unique auction design to protect traders from value extraction. This value extraction, known as MEV, or Miner Extractable Value, is becoming a controversial and important topic in the blockchain industry.
"MEV is a phenomenon currently extracting value of up to 1% of all DEX trades on Ethereum, with value going from users to miners or other arbitrageurs. With BGP, and in particular Gnosis Protocol v2, we built a trading protocol that protects users and makes sure the value stays with them," says Martin Köppelmann, Gnosis CEO.
The aim of the Balancer-Gnosis-Protocol (BGP) is to self-regulate the space to move from current fixed rules that apply specific parameters, to upgradeable rules via governance that change parameters according to market conditions. These changeable rules are applied to market makers and traders with the aim of keeping the value from the miners while distributing it across the Protocol's users in the form of better prices.
Balancer-Gnosis-Protocol (BGP) will be released in stages. Balancer V2 was recently released for developers, and traders will have the ability to migrate liquidity in the coming weeks. Today, the proof-of-concept CowSwap DEX goes live to test the experience of Gnosis Protocol v2 and offer a 90% reduction in transaction gas costs. Targeted for mid-June, Balancer V2 will be fully integrated with Gnosis Protocol v2, and a joint Balancer-Gnosis-Protocol incentive program will kick off.
"By collaboration, we can out-cooperate the competition-traditional finance-and bring traders unparalleled decentralization, transparency, and value," says Fernando Martinelli, Balancer CEO. "We're proud to bring two teams known for great engineering, Balancer Labs and Gnosis, together in this collaboration."
About Balancer
Balancer Protocol allows for automated portfolio management and provides liquidity turning the concept of an index fund on its head: instead of paying fees to portfolio managers, you collect fees from traders who rebalance your portfolio by following arbitrage opportunities. Developers leverage Balancer as a permissionless building block to innovate freely and create new treasury management systems. Balancer Lab's mission is to become the primary source of DeFi liquidity by providing the most flexible and powerful platform for asset management and decentralized exchange.
To learn more, please visit https://balancer.finance/.
About Gnosis
Gnosis builds new market mechanisms for decentralized finance. Our three interoperable product lines allow users to securely create, trade, and hold digital assets, currently enabling users to manage more than $26 Billion on Ethereum. Gnosis was founded in 2015 by Martin Köppelmann and Stefan George as part of ConsenSys, the globally leading Ethereum venture production studio. In April 2017, Gnosis raised funds and spun out of ConsenSys to become an independent company now with more than 60 employees.
To learn more, please visit https://gnosis.io/.
CowSwap DEX: https://cowswap.exchange/: CowSwap is a proof-of-concept decentralized application built on Gnosis Protocol v2 (GPv2). CowSwap offers the decentralized finance community a teaser of the capabilities of GPv2 through testing upcoming features while placing nearly gas-free trades. Please note the proof-of-concept dapp is in alpha and is currently undergoing a formal audit process.
Contact:
Dan Edelstein
pr@marketacross.com
SOURCE: Balancer
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