Gauging the impact of Boosted Pools on Balancer’s [BAL] market trend

ambcrypto.com:

More than a year ago, Balancer created its Boosted Pool to attract liquidity to the protocol by providing investors with additional incentives. How balanced has this made the protocol and its native token – BAL?

– Read Balancer (BAL) Price Prediction 2022-2023

Balancer Boosted Pool is a feature of the Decentralized Finance (DeFi) protocol – Balancer. The Balancer Boosted Pool allows liquidity providers (LPs) to deposit two types of assets in a pool – The base asset and the boost asset. The base asset typically has lower volatility while the boost asset has higher volatility. The boost asset is used to generate additional returns for liquidity providers.

According to a recent report by Messari, Balancer developed boosted pools to improve LPs’ capital efficiency. Depositors might profit from trading commissions and interest thanks to the pools. LPs receive $0.50, the Decentralised Autonomous Organization (DAO) treasury receives $0.175, and veBAL lockers receive $0.325 for every dollar in fees paid.

What effect has this action had on Balancer’s Total Value Locked? (TVL)

Since the introduction of the boosted pools, the trend in TVL has been more of a downward trend than an upward one, according to statistics from DefiLlama. The chart revealed that the TVL has fallen from almost $2 billion to $1 billion since the pools were established. The TVL was approximately $1.28 billion, at the time of writing, with a slight hike seen since January. 

Source: DefiLlama

Balancer’s (BAL) price has been relatively flat in recent weeks. In fact, a look at its price action on the daily timeframe showed no discernible upward or downward trend. At the time of writing, the asset had dropped nearly 1% in value and was trading at around $6.35.

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