According to Benqi's official news, the decentralized trading and asset management protocol Balancer has announced that its V3 version is now officially deployed on the Avalanche mainnet, opening a new chapter of composable DeFi in the Avalanche ecosystem. This integration not only unlocks more efficient yield channels for liquidity providers (LPs) but also builds a multi-protocol yield engine centered around sAVAX.
Multi-Protocol Fusion: Creating a Native Yield Machine
Balancer V3's deployment on Avalanche marks the establishment of a highly composable DeFi infrastructure. One of its featured pools—sAVAX / ggAVAX / WAVAX—integrates three native Avalanche assets, leveraging Balancer's dynamic fee mechanism and Aave's Boosted pool design to achieve:
● Native AVAX staking rewards (via sAVAX)
● Additional yields from lending protocols (via Aave)
● Multi-layered yield stacking
● Stronger liquidity and protocol coverage
This pool provides liquidity providers with both protocol breadth and yield depth, generating continuous returns while maintaining asset liquidity.
sAVAX: A Bridge Asset Balancing Liquidity and Yields
sAVAX, a liquidity staking token issued by BENQI, not only provides users with native yields from AVAX staking but also offers liquidity that can be directly used in various DeFi protocols. In this Balancer V3 integration, sAVAX is further utilized as a bridge asset for entering complex DeFi strategies, seamlessly connecting staking activities with advanced yield combination strategies.
Clear and Straightforward User Participation Path
Users can participate in the yield opportunities brought by this integration through the following process:
1. Stake AVAX and obtain sAVAX (supported by BENQI)
2. Inject sAVAX into the Balancer V3 pool, combining assets like ggAVAX and WAVAX
3. Receive multiple yield incentives, including native staking, lending interest, and Balancer ecosystem rewards
This integration introduces a truly multi-protocol yield aggregation model to the Avalanche ecosystem, transforming composability from concept to practice and becoming a new foundation for yield strategies.
For further information about Balancer V3's deployment on Avalanche or to participate in liquidity provision, please visit:
Balancer V3 Pool Link: https://balancer.fi/pools/avalanche/v3/0x99a9a471dbe0dcc6855b4cd4bbabeccb1280f5e8
BENQI Platform: https://benqi.fi
