Introduction:
Recently Mimo Labs have submitted a Balancer Gauge proposal for the MIMO/wETH 80/20 pool on Ethereum mainnet et Polygon PoS. This proposal has been accepted, and in the context of the MGP-16 and MGP-17, the DAO has decided to vote with accumulated vlAURA owned by the DAO on these MIMO/wETH pools to provide incentives for liquidity providers but also starting the accumulation of POL (Protocol Owned Liquidity).
In this article, we will delve into the concept of weighted pools on Balancer, explore the MIMO token and its utility, and guide you through the process of depositing liquidity on Balancer and how to optimize your yield with Aura Finance.
Understanding Weighted Pools on Balancer:
Balancer's weighted pools are an innovative extension of traditional AMM pools, allowing users to create liquidity pools with custom weightings for multiple tokens. Unlike conventional 50/50 pools, Balancer's weighted pools enable the composition of pools with various token ratios, such as the MIMO/wETH 80/20 pool. These weighted pools are designed to accommodate assets with different price correlations, offering greater flexibility, reduced impermanent loss and control for liquidity providers.
The MIMO Token:
MIMO is the governance token associated with both the Parallel Protocol and the KUMA Protocol. MIMO token holders play a vital role in the governance of both protocols, actively participating in decision-making processes by voting on proposals. This dual functionality underscores the significance of the MIMO Token within the decentralized finance (DeFi) ecosystem, granting users the power to shape the development and direction of these protocols.
How to Deposit Liquidity on Balancer:
To participate in the MIMO/wETH 80/20 pool on Balancer, users can deposit their MIMO and/or wETH tokens on the Balancer protocol. By doing so, they receive Balancer Pool Tokens (BPT), which represent their share of the pool. These BPTs serve as proof of the user's liquidity deposit in the Balancer pool.
Provide liquidity on Ethereum or in Polygon PoS
Currently, you can earn up to 3125% APR depending on your veBAL balance, if you don't have any veBAL, it's possible to get a boosted APR of up to 765% APR on Aura Finance, see below for more details.
Maximizing Yield with Aura Finance:
After obtaining MIMO/wETH 80/20 BPTs, users can further optimize their yield by staking these tokens on Aura Finance. Aura Finance offers boosted yield opportunities, which are paid in $BAL and $AURA. Staking MIMO/wETH 80/20 BPTs on Aura Finance allows users to earn additional rewards.
Stake your BPTs on Ethereum or in Polygon PoS.
In conclusion
The arrival of MIMO/wETH 80/20 pools on Balancer's Ethereum and Polygon PoS opens up a hub for liquidity provision for the MIMO token. Balancer's weighted pools provide flexibility and reduced Impermanent loss, while Aura Finance offers opportunities for liquidity providers to earn enhanced yields making them profitable even with a reduced Impermanent loss.
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