Balancer Protocol

Balancer’s mission is to accelerate innovation in DeFi by providing access to secure infrastructure…

Follow publication

100% Boosted Pools — Powered by Morpho

Beets
Balancer Protocol
Published in
4 min readJan 22, 2025

100% Boosted Pools simplify yield generation, allowing users to ‘boost’ rewards by accessing the two leading yield markets– DEXs and lending markets — in one position.

Morpho Boosted Pools boost users’ rewards by routing all underlying Liquidity Providers (LP) funds into Morpho Vaults. This maximizes exposure to lending interest rates while ensuring all liquidity remains available to facilitate and earn rewards from swaps.

Sustainable DeFi Yield Generation with Morpho

Morpho is a permissionless lending protocol designed to improve efficiency and flexibility in DeFi markets. It facilitates peer-to-peer lending, with depositors earning the rates established by lending supply and borrowing demand mechanics. With over $6.26 billion in total deposits, Morpho has established itself as one of the largest liquidity markets in DeFi.

Unlike traditional lending markets, Morpho prioritizes individual efficiency and permissionless market creation over governance-managed decision-making. Morpho enables sophisticated lenders, known as curators, to customize and create lending strategies by considering collateral assets, liquidation LTVs, oracles, and caps. These markets are known as Vaults, and each Vault is curated to reflect a different risk profile based on the curator’s goal and value proposition.

The Potential of Boosted Pools Powered by Morpho Vaults

With permissionless market creation and each vault curated with differing risk profiles, the potential avenues for Boosted Pool creation on Morpho are infinite. For external DAOs/protocols looking to grow liquidity for their token, Morpho Boosted Pools offer an incredibly efficient solution to grow swap liquidity and lending market supply simultaneously.

Coinshift | Steakhouse

For example, Coinshift, a protocol that aims to build the first onchain treasury economy, is looking to foster a new, highly secure home for USDL. This yield-bearing Paxos-issued stablecoin combines RWA-backed reliability and blue-chip assets with DeFi's flexibility.

In collaboration with Steakhouse, a Morpho Curator, both a USDC and a USDL CoinShift Morpho vault have been created. To supercharge and connect both these markets, a USDC | USDL Boosted Pool has then been launched on Balancer.

With the creation of this Boosted Pool, Coinshift can incentivize one position (The Morpho Boosted Pool) and grow liquidity across three different markets that benefit them: swap liquidity for USDL, lending market liquidity for USDL, and finally lending market liquidity for their isolated USDC market.

During this time, LPs gain exposure to 3 different sources of sustainable yield generation, plus any external rewards directed at the pool or lending market. For this pool, there are additional MORPHO and SHIFT rewards.

Dinero | Gauntlet

In collaboration with Dinero and Gauntlet, a pxETH | ETH Morpho Boosted Pool is also live to accommodate users seeking exposure to yield-bearing ETH liquidity. With one position offering users swap fees, Ethereum network staking rewards, ETH lending interest via Gauntlet’s isolated ETH market, and DINERO rewards, this pool is a one-stop shop for generating diverse rewards on ETH.

Boosted Earnings, Simplified Strategy

Morpho Boosted Pools represent the potential of composability in DeFi, seamlessly stacking efficient yield-generating primitives. By leveraging Morpho Vaults’ curated lending strategies and Balancer’s robust liquidity infrastructure, users and protocols alike can unlock new opportunities for growth and efficiency. Whether scaling liquidity for emerging tokens or optimizing yield across diverse markets, Morpho Boosted Pools offers an intuitive and powerful solution that simplifies DeFi participation while maximizing returns.

Free

Distraction-free reading. No ads.

Organize your knowledge with lists and highlights.

Tell your story. Find your audience.

Membership

Read member-only stories

Support writers you read most

Earn money for your writing

Listen to audio narrations

Read offline with the Medium app

Balancer Protocol
Balancer Protocol

Published in Balancer Protocol

Balancer’s mission is to accelerate innovation in DeFi by providing access to secure infrastructure for liquidity applications. Projects build on Balancer to create new, innovative types of pools and financial dApps.

Beets
Beets

No responses yet

Write a response