Epicenter - Learn about Crypto, Blockchain, Ethereum, Bitcoin and Distributed Technologies Balancer: Custom AMMs and Liquidity Solutions - Fernando Martinelli
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Jan 31, 2025 Fernando Martinelli, Co-founder of Balancer Protocol, dives into the evolution and innovation of automated market makers (AMMs) in DeFi. He discusses Balancer's unique features, including the shift to a developer-centric approach and the game-changing launch of Balancer V3. The conversation covers fungible vs non-fungible liquidity strategies, enhanced developer tools, and the innovative hooks for customizable AMMs. Martinelli also addresses MEV mitigation and how Balancer aims to protect users while scaling efficiently.
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Balancer's Origin
Fernando Martinelli shared his journey from being a fan of crypto to co-founding Balancer after realizing AMMs could support multiple tokens with varying weights. This culminated in the launch of Balancer V1 in 2020.
Evolution of AMMs
AMMs have evolved significantly since their inception, tackling challenges like impermanent loss and MEV, and introducing innovations like priority fee mechanisms. This evolution showcases the potential for continued advancements in AMM design.
Fungible vs. Non-Fungible Liquidity
Fungible liquidity creates a level playing field for passive LPs, protecting them from sophisticated strategies that can exploit concentrated liquidity. This balance ensures users can safely deploy capital without active management.