The decentralized Exchange Balancer and DeFi platform Gnosis today announced a planned integration called Balancer-Gnosis-Protocol., a collaboration that combines Balancer’s v2 pool mechanisms with Gnosis’ DEX aggregator and batch auctions to mitigate Miner’s Extractable Value (MEV)
Currently running for developer testing, Balancer v2 was announced in February and has a number of new features.: All liquidity is consolidated into a single vault for gas efficiency, unused liquidity is used for additional return on the Aave lending platform, and users can create their own automated market charts with customizable curves.
Gnosis, for its part, is preparing to publish the proof of concept for its next Cowswap DEX on Wednesday. Cowswap integrates “all sources of liquidity in Ethereum” as a 1-inch-like aggregator as well offers a partially off-chain system that can result in non-gas transactionsas well as strict slip and MEV protection.
MEV is a phenomenon where bots anticipate transactions with DEXs, exploit arbitration and cause slips. The demand for ways to mitigate MEV has increased in recent months, and according to MEV-Explore Since January 1, 2020, DEX traders worth more than $ 420 million have been mined.
The collaboration between protocols is designed to combine the best of the pool and curvature mechanics with a next generation liquidity aggregator and MEV deterrent exchange platform.The current target date for full integration is “mid-June” and the teams have determined that there will be an “incentive program”, presumably some form of cash raffle, that will coincide with the launch.
“By working together, we can outperform the competition – traditional finance – and provide operators with unparalleled decentralization, transparency and value creation.”said the CEO of Balancer, Fernando Martinelliabout integration.
Balancer has been particularly active lately in integrating with other protocols. highlighted by the collaboration with Aave in its design v2These integrations seem to be part of a wider movement of collaborations that is intensifying across the DeFi space.