# Boosted Pools

Boosted Pools represent a significant evolution in DeFi yield generation, combining the benefits of DEX liquidity provision and lending market yields in a single position. These pools maximize capital efficiency while maintaining a simple, passive user experience.

# Overview

Boosted Pools in Balancer v3 enable:

• 100% utilization of pool liquidity in lending markets
• Simultaneous earning from swap fees and lending yields
• Gas-efficient swaps through an innovative buffer system
• Simple UX with permissionless entry and exit

# How Boosted Pools Work

# Architecture

Boosted Pools deploy 100% of liquidity into yield-generating strategies (e.g., Aave) while maintaining full swap functionality through a buffer system:

1. Underlying Assets: Users deposit base assets (e.g., USDC, DAI)
2. Yield Generation: Assets are automatically converted to yield-bearing tokens (e.g., aUSDC, aDAI)
3. Buffer System: Facilitates efficient swaps between base assets

# Key Benefits

For Liquidity Providers:

• Earn both swap fees and lending yields
• Simplified position management
• Permissionless entry and exit
• Full exposure to yield-bearing assets

For Traders:

• Seamless swaps between base assets
• Gas-efficient transactions
• Deep, reliable liquidity
• No additional complexity

# Implementation

Boosted Pools in v3 improve upon previous versions by:

• Eliminating nested pool structures
• Introducing efficient buffer mechanics
• Optimizing gas costs for all operations
• Maintaining 100% capital efficiency

# Use Cases

Boosted Pools are ideal for:

• Stablecoin liquidity provision
• Passive yield optimization strategies
• High-volume trading pairs
• Long-term liquidity deployment

# Additional Resources

• Buffer Documentation
• Buffer Documentation
• Pool Creation Guide