Liquidity Balancers

Bao Finance has deployed an AMM-based Liquidity Balancer that mints and burns synths directly into liquidity pools to sustainably align incentives.

How It Works

Liquidity Balancers have the capability to:

  • Mint baoUSD and baoETH stablecoins directly into paired liquidity pools

  • Burn baoUSD and baoETH synths from pools when redeemed

Key Benefits

  • Earn trading fees through providing baoUSD or baoETH liquidity the protocol will eanr trading fees

  • Maintain synth pegs via pool rebalancing. When a synth is below peg the balancer will withdraw and burn, bringing back the balance to a healthy level. When the synth is above peg the balancer will mint tokens to the liquidity pool to bring back the balance of the pool

  • Liquidity rewards are earned by the LP tokens the Balancer owns while it has tokens minted in the pool.

Initial Deployment

The Liquidity Balancer launched using Balancer pools for baoUSD and baoETH against their underlying collateral assets.

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