Balancer has recently unveiled their new V2 product AMM, amongst a number of improvements from V1, V2 introduces a new feature; Asset Managers which allows a portion of the funds from a liquidity pool to be lent out to lending providers to boost the yield for a LP pool.
This graphic from the balancer team medium post is especially useful at illustrating how this works.
Links to articles
- Introducing Balancer V2: Generalized AMMs | by Fernando Martinelli | Balancer Protocol | Medium
- Aave & Balancer Partner to Build The First Asset Manager for Balancer V2 | by Fernando Martinelli | Balancer Protocol | Feb, 2021 | Medium
An asset manager is a smart contract that can automatically balance a portion of a pools funds to a lending provider (IDLE for example) to improve a pools yield.
Currently, AAVE has partnered as the first lending provider for V2, but I think it would be an awesome opportunity for IDLE to integrate with Balancer as a lending provider which would benefit balancer LP holders, and also increase TVL in idle (win/win).
The purpose of this post is to gauge community sentiment on this and to get the ball rolling so to speak.