• Two of Ethereum’s leading DeFi protocols — Balancer and Gnosis, have announced a new business partnership.
• This combination will be known as BGP (Balancer-Gnosis Protocol), and it will replace Balancer’s current infrastructure.

Lead DeFi protocols — Balancer and Gnosis, Balancer Growth’s Head of Growth, Jeremy Musighi, announced today at Liscon, the official launch of Balancer-Gnosis-Protocol (BGP). BGP, to be specific, is a combination of the ‘vault architecture’ of Balancer V2 and the revolutionary price-finding mechanism of Gnosis Protocol.

They hope to offer more benefits for users, such as enhanced trading prices and MEV protection. Users will now be able use BGP to trade on balancer.fi.

Balancer Labs CEO & Co-Founder — Fernando Martinelli, comments,

“Gnosis brings unparalleled transparency and value to DeFi, focusing on user experience and enhancing industry growth. The combination of these two protocols will allow users to obtain the best benefits of Gnosis and Balancer, such as gasless trading, better overall prices, and MEV protection.”

BGP eliminates the requirement for an external liquidity provider or market maker. This will enable users to cut down on fuel costs and slippage tolerance.

Noting that MEV (Miner Extractable Value) refers the profit that a mincer can make by being able to add, subtract, or reorder transactions in the blocks that they produce, In fact, to date, more than &30 million has been extracted from users by bots frontrunning transactions and exploiting the slippage users allow in trade.

Moreover, BGP or the Balancer-Gnosis-Protocol leverages batch auctions with uniform clearing prices for all trades in the same batch, to protect users from the aforementioned value extraction, which is already active on the Gnosis CowSwap DEX.

Also expressing his delight on the collaboration, Gnosis CEO and Co-founder — Martin Köppelmann, said,

“The collaboration with Balancer is a natural fit, the native integration of Balancer’s v2 architecture allows us to achieve even better prices for the end-users and provide a smooth UX across the two platforms. It’s an important milestone towards our mission to build an infrastructure layer that protects traders.”

Furthermore, the users of Balancer will be introduced to Gnosis’s price-finding mechanism, based on gasless orders and smart order routing. An off-chain message will be used to communicate intent to trade rather than sending an executable order with an execution path. The additional party will also execute trades against the highest price on the chain liquidity.

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