Decentralized exchange Balancer and DeFi platform Gnosis have announced today a planned integration dubbed the Balancer-Gnosis-Protocol (BGP), a collaboration that will combine Balancer’s v2 pool mechanisms with Gnosis’s DEX aggregation and batch auctions designed to mitigate miner extractable value (MEV).
Balancer’s v2, which is currently live for developer testing, was announced in February and boasts a host of new features: all liquidity will be pooled into a single vault for gas efficiency, unused liquidity will be put to work on lending platform Aave for additional yield, and users will be able to build their own AMMs with customizable curves.
Gnosis, meanwhile, is set to release the proof-of-concept for their forthcoming Cowswap DEX today. Cowswap integrates “all liquidity sources on Ethereum” as an aggregator similar to 1inch, and also offers a partially-offchain system that may lead to gasless transactions, as well as tight slippage and MEV protection.
MEV is a phenomenon where bots frontrun transactions on DEXes, exploiting arbitrages and causing