TechFlow news — On December 16, Balancer Labs, an automated portfolio manager and liquidity provider, announced a collaboration with leading DeFi lending protocol Aave to officially launch Boosted Pools. According to Balancer, the new product aims to address reduced capital efficiency by generating yield from tokens deposited in automated market maker (AMM) pools. Balancer noted that traders typically utilize only about 10% of the available liquidity in AMM pools, as trade sizes are smaller than the total liquidity. With Boosted Pools, the remaining idle liquidity can be deposited into lending protocols, thereby generating additional returns. Different levels of Boosted Pools can enable deeper liquidity, more efficient liquidity aggregation, and higher yields.
