⚖️Weighted Pool

Among the various types of liquidity pools offered by the Balancer platform, the 50/50 pool and the 80/20 pool provide liquidity providers with diverse strategic options through their unique characteristics. The 50/50 pool is composed of two assets in equal proportions of 50% each. This structure allows for relatively stable returns by balancing risk when the price fluctuations of the two assets are similar.

In contrast, the 80/20 pool features an imbalanced ratio, with one asset comprising 80% and the other 20%. The 80/20 pool suggests a configuration where 80% of the protocol's native token is paired with the chain's base token or a highly liquid stablecoin, using the 80/20 pool LP token as a governance token instead of a single token. To leverage the LP token as a governance token, it is locked for a certain period to obtain ve8020 tokens, which are then used as voting power in governance.

In conclusion, providing liquidity through the 80/20 pool is essential for effectively utilizing the protocol's native tokens within the Kommune ecosystem. This is a mechanism designed for the protocol's stability and sustainability.