Balancer, a leading automated market maker, has launched version 2 of its protocol, promising faster speed, lower costs and improved liquidity.

In addition to revamping the user interface, Balancer'southward backend volition provide more efficient routing for trades through "Protocol Vault." The platform claims that this upgrade will reduce gas costs and produce better pricing mechanisms.

Expected gas costs are said to be xl% lower in version ii – a effigy that jumps to 53% with internal balances.

Balancer Labs, the development arm behind the AMM, also announced a partnership with DeFi protocol Gnosis to deliver an enhanced user experience to traders across cost, user experience and transparency.

Automated market makers are substantially smart contracts that generate a liquidity pool of tokens, which are traded automatically through a programmable algorithm as opposed to an order book. This allows avails to exist swapped automatically.

AMMs are role of the apace growing DeFi manufacture which, according to manufacture estimates, has grown eightfold since the get-go of 2021. The DeFi space has locked in more than than $160 billion in assets as of Tuesday.

Balancer'due south native BAL token has set multiple record highs this yr on the back of positive protocol integrations, gas fee reimbursements and a surge in DeFi trading activity. Buzz surrounding a possible Coinbase listing has too contributed to BAL's tremendous growth.

The toll of BAL was little inverse at $67 on Tuesday for a total market capitalization of $722 1000000. BAL is the 31st largest DeFi protocol by market place cap, according to Coingecko.