BALANCER AND GNOSIS LAUNCH THE BALANCER-GNOSIS-PROTOCOL (BGP)

The decentralized finance (DeFi) landscape is constantly evolving, with innovation driving new solutions and opportunities for users.Two of Ethereum's leading protocols, Balancer and Gnosis, have joined forces to introduce a groundbreaking development: the Balancer-Gnosis-Protocol (BGP). Octo - Lisbon, Portugal - Balancer Labs head of growth, Jeremy Musighi, announced at LisCon the official launch of the Balancer-Gnosis-Protocol (BGP). BGP combines the VaultAnnounced at LisCon by Balancer Labs Head of Growth, Jeremy Musighi, the BGP represents a significant leap forward in decentralized exchange (DEX) technology, combining the strengths of both protocols to create a more capital-efficient, user-friendly, and secure trading environment.This collaboration aims to address critical challenges in the DeFi space, such as Miner Extractable Value (MEV) manipulation and high transaction costs, while offering traders an enhanced experience with on-chain liquidity and better price discovery.But what exactly makes the BGP so special? Two of Ethereum s leading DeFi protocols Balancer and Gnosis, have announced a new business partnership. The combination of both protocols, will be called BGP (Balancer Gnosis Protocol)How does it work, and what benefits does it offer to users and the broader DeFi ecosystem? Two of Ethereum s leading protocols, Balancer and Gnosis, have officially announced the launch of the Balancer-Gnosis-Protocol (BGP), which a new DEX developed as a result of the integration between the protocols. BGP combines the Vault architecture of Balancer V2 with Gnosis Protocol s unique price-finding mechanism.Let's dive into the details of this game-changing partnership and explore the future of decentralized trading.

What is the Balancer-Gnosis-Protocol (BGP)?

The Balancer-Gnosis-Protocol (BGP) is a new decentralized exchange (DEX) born from the integration of Balancer V2 and Gnosis Protocol V2. The Balancer-Gnosis-Protocol (BGP) alliance combines the best of both protocols, with Balancer V2 s flexible liquidity pools enabled by a single-vault architecture and asset managers, inIt's designed to leverage the unique strengths of each protocol to provide a superior trading experience.Think of it as a best-of-both-worlds scenario, combining Balancer's flexible liquidity pools with Gnosis Protocol's innovative price-finding mechanism. Trusted News Discovery Since 2025. Global Edition. Tuesday, NovemEssentially, the BGP aims to create a DEX that is not only capital efficient but also offers robust protection against MEV and other forms of manipulation.

This collaboration addresses some of the core issues that have plagued DEXs. Lisbon, Portugal, 21st October, 2025 Balancer Labs Head of Growth, Jeremy Musighi, announced today at LisCon the official launch of the Balancer-Gnosis-Protocol (BGP). BGP combines the Vault architecture of Balancer V2 with Gnosis Protocol s revolutionary price-finding mechanism. Balancer joins Gnosis to provide user benefits such as on-chain liquidity, MEV protection, better tradingBy merging the Vault architecture of Balancer V2 with Gnosis Protocol's advanced price-finding capabilities, the BGP delivers on its promise of on-chain liquidity, MEV protection, and a smoother trading experience.

The Key Components: Balancer V2 and Gnosis Protocol

To fully understand the BGP, it's important to appreciate the individual contributions of Balancer V2 and Gnosis Protocol:

Balancer V2: The Flexible Liquidity Provider

Balancer V2 is an automated market maker (AMM) that allows for the creation of highly customizable liquidity pools. Two of Ethereum s leading protocols, Balancer and Gnosis, have officially announced the launch of the Balancer-Gnosis-Protocol (BGP), which a new DEX developed as a result of the integration between the protocols.Its key feature is the Vault architecture, which centralizes all token balances in a single vault.This architecture enables:

• Capital Efficiency: Shared liquidity across multiple pools minimizes idle capital.
• Flexibility: Pools can contain any number of tokens, with customizable weights.
• Asset Management: Asset managers can be permissioned to execute complex strategies within the Vault.

Balancer V2’s single-vault architecture and asset management capabilities provide a flexible and efficient foundation for the BGP.

Gnosis Protocol: The Price Discovery Innovator

Gnosis Protocol is a decentralized exchange protocol that utilizes a batch auction mechanism to determine fair prices and protect against front-running.Instead of continuously matching orders like a traditional order book DEX, Gnosis Protocol aggregates orders into batches and executes them at a single clearing price. LISBON, PORTUGAL / ACCESSWIRE / Octo / Balancer Labs' Head of Growth, Jeremy Musighi, announced today at LisCon the official launch of the Balancer-Gnosis-Protocol (BGP). BGP combinesThis approach offers several advantages:

• MEV Protection: Batch auctions make it difficult for miners to extract value by front-running or sandwich attacking trades.
• Fair Price Discovery: All orders in a batch are executed at the same price, preventing price manipulation.
• Gas Efficiency: Batching reduces the overall gas costs for traders.

Gnosis Protocol's price-finding mechanism is a crucial component of the BGP, providing a layer of protection against MEV that is often lacking in traditional AMMs.

How the Balancer-Gnosis-Protocol Works: A Synergistic Integration

The BGP cleverly combines the strengths of Balancer V2 and Gnosis Protocol to create a unique trading experience.Here’s how it works:

1. Liquidity Provision: Liquidity providers (LPs) deposit tokens into Balancer V2 pools within the Vault.These pools can be configured with various parameters, such as token weights and swap fees, allowing for customized liquidity strategies.
2. Order Aggregation: Traders submit their orders through the Gnosis Protocol interface.These orders are aggregated into batches over a certain period.
3. Batch Auction: At the end of each batch, Gnosis Protocol’s price-finding mechanism determines the optimal clearing price for each token pair.All orders in the batch are executed at this single price.
4. Vault Settlement: The Gnosis Protocol settlement contract interacts with the Balancer V2 Vault to settle the trades.The Vault updates token balances based on the executed trades.

By leveraging Balancer V2's Vault for liquidity and Gnosis Protocol's batch auctions for price discovery, the BGP achieves a powerful synergy that benefits both traders and liquidity providers.

Benefits of the Balancer-Gnosis-Protocol (BGP)

The Balancer-Gnosis-Protocol (BGP) offers a range of benefits that address some of the key challenges in the DeFi space:

• Enhanced MEV Protection: Gnosis Protocol's batch auctions significantly reduce the risk of MEV extraction, protecting traders from front-running and sandwich attacks.
• Improved Capital Efficiency: Balancer V2's Vault architecture allows for more efficient use of capital, reducing slippage and improving trading prices.
• Fair Price Discovery: Batch auctions ensure that all traders in a batch receive the same price, preventing price manipulation and promoting fairness.
• Flexible Liquidity Pools: Balancer V2's customizable pools allow LPs to create tailored liquidity strategies, optimizing their returns.
• User-Friendly Experience: The BGP aims to provide a seamless and intuitive trading experience for users, making it easier to access and participate in DeFi.

These benefits make the BGP a compelling alternative to traditional AMMs and order book DEXs, offering a more secure, efficient, and fair trading environment.

Addressing the MEV Problem with BGP

Miner Extractable Value (MEV) is a significant concern in the DeFi space. Balancer Integrates with Gnosis to Launch the Balancer-Gnosis-Protocol (BGP) OctoIt refers to the profit that miners (or validators in Proof-of-Stake systems) can extract by reordering, including, or excluding transactions in a block. Lisbon, Portugal, 21st October, 2025, Balancer Labs Head of Growth, Jeremy Musighi, announced today at LisCon the official launch of the Balancer-Gnosis-Protocol (BGP). BGP combines the Vault architecture of Balancer V2 with Gnosis Protocol s revolutionary price-finding mechanism. Balancer joins Gnosis to provide user benefits such as on-chain liquidity, MEV protection, better tradingThis can lead to front-running, sandwich attacks, and other forms of manipulation that harm traders.

The BGP tackles the MEV problem head-on through Gnosis Protocol’s batch auction mechanism. Two of the most reputable teams in Ethereum launch a new DEX to deliver the best experience for traders. NEW YORK, NY / ACCESSWIRE / Ap / Balancer Labs, one of the leading automated market makers (AMM), and Gnosis, a protocol suite for new decentralized finance market mechanisms, announced today the launch of Balancer-Gnosis-Protocol (BGP).By aggregating orders into batches and executing them at a single clearing price, the BGP makes it much harder for miners to profit from manipulating transaction order.The batch auction process effectively randomizes the order of execution, reducing the predictability that MEV exploiters rely on.

While the BGP doesn't eliminate MEV entirely, it significantly reduces its impact, creating a more level playing field for traders.

The Balancer and Gnosis Partnership: A Strategic Alliance

The collaboration between Balancer Labs and Gnosis is a strategic alliance that leverages the expertise and resources of both teams. Balancer Labs head of growth, Jeremy Musighi, announced at LisCon the official launch of the Balancer-Gnosis-Protocol (BGP). BGP combines the Vault architecture of Balancer V2 with Gnosis Protocol s revolutionary price-finding mechanism.Both protocols have a strong reputation in the Ethereum ecosystem, and their combined efforts are likely to have a significant impact on the DeFi landscape.

The partnership reflects a growing trend in DeFi towards collaboration and integration.As the ecosystem matures, protocols are increasingly recognizing the benefits of working together to create more robust and user-friendly solutions.

The BGP is a testament to the power of collaboration in DeFi, demonstrating how two innovative protocols can combine their strengths to create something greater than the sum of their parts.

Future Development and Integration

The launch of the Balancer-Gnosis-Protocol (BGP) is just the beginning. Two of the most reputable teams in Ethereum launch a new DEX to deliver the best experience for traders NEW YORK, NY / ACCESSWIRE / Ap / Balancer Labs, one of the leading automatedBoth Balancer and Gnosis are committed to continued development and integration to further enhance the BGP and its capabilities.

One area of focus is likely to be the optimization of gas efficiency. BGP combines the Vault architecture of Balancer V2 with Gnosis Protocol's revolutionary price-finding mechanism. Balancer joins Gnosis to provide user benefits such as on-chain liquidity, MEVWhile Gnosis Protocol's batch auctions are already more gas-efficient than traditional order book DEXs, there is always room for improvement.Further research and development could lead to even lower transaction costs for BGP users.

Another area of potential development is the integration of new features and functionalities, such as limit orders, stop-loss orders, and advanced trading tools. In a bid to offer traders better trading experience, capital efficiency, and protection against gas fee manipulation, Balancer Labs, the team behind Balancer (BAL), the 10th-largest decentralized exchange and automated market maker (AMM) in the world, has forged alliances with Gnosis to launch Balancer-Gnosis-Protocol (BGP).These features could further enhance the BGP's appeal to both novice and experienced traders.

Who Benefits from the Balancer-Gnosis-Protocol (BGP)?

The BGP is designed to benefit a wide range of participants in the DeFi ecosystem:

• Traders: Benefit from MEV protection, fair price discovery, and improved trading prices.
• Liquidity Providers: Can create tailored liquidity strategies and earn fees on their deposited tokens.
• DeFi Users: Gain access to a more secure, efficient, and user-friendly decentralized exchange.
• The Ethereum Ecosystem: Benefits from increased liquidity, improved price discovery, and reduced MEV exploitation.

In short, the BGP aims to create a win-win situation for all stakeholders in the DeFi ecosystem.

Real-World Example of BGP in Action

Imagine Alice wants to trade 1 ETH for DAI on a DEX. Balancer (BAL) and Gnosis have come together to launch the Balancer-Gnosis-Protocol (BGP). The team says the new protocol combines the strengths of both protocols, offering users a capital-efficient decentralized exchange (DEX) that protects them from Miner Extractable Value (MEV) manipulation, according to a blog post on Ap.On a traditional AMM, a miner could observe Alice's transaction in the mempool and insert their own transaction before hers to buy up DAI, driving up the price.Then, they would let Alice's transaction go through, profiting from the slippage she incurs.This is a classic sandwich attack.

On the BGP, Alice's order is batched with other orders.The auction mechanism determines a fair price for ETH/DAI based on the aggregate demand and supply within the batch. Following the announcement of the Balancer-Gnosis Protocol [0], this proposal aims to authorize the Gnosis Protocol V2 settlement contract with the necessary roles to: Leverage the Vault s pre-existing user ERC20 allowances and balances.Because the order of execution within the batch is effectively randomized, the miner cannot predictably front-run or sandwich Alice's trade. Balancer-Gnosis-Protocol: Targeted for mid-June, Balancer V2 will be fully integrated with Gnosis Protocol V2 to form Balancer-Gnosis-Protocol, and a joint incentive program will kick off.This results in Alice getting a better price and avoiding the MEV extraction.

Why is Capital Efficiency Important?

Capital efficiency is a crucial factor in the success of any DeFi protocol.It refers to the ability of a protocol to maximize the utilization of the capital deposited within it.

Balancer V2's Vault architecture plays a key role in improving capital efficiency by allowing liquidity to be shared across multiple pools. Balancer and Gnosis are launching an Ethereum-based DEX called the Balancer-Gnosis-Protocol. Through combining Balancer V2 s Vault system with Gnosis price-finding mechanism, the new DEX aims to protect traders from MEV. It will launch in several stages, with a full integration slated for mid-June. Share this articleThis reduces the amount of idle capital and allows for more efficient price discovery.

More capital efficiency translates to tighter spreads, lower slippage, and better trading prices for users.

BGP vs. Balancer Labs, one of the leading automated market makers (AMM), and Gnosis, a protocol suite for new decentralized finance market mechanisms, announced today the launch of Balancer-GnosisTraditional AMMs: What's the Difference?

The Balancer-Gnosis-Protocol (BGP) offers several key advantages over traditional Automated Market Makers (AMMs):

• MEV Protection: Traditional AMMs are highly susceptible to MEV exploitation, while the BGP offers robust MEV protection through Gnosis Protocol's batch auctions.
• Price Discovery: Traditional AMMs rely on constant product formulas, which can lead to price slippage and manipulation.The BGP's batch auctions provide a fairer and more efficient price discovery mechanism.
• Capital Efficiency: The BGP's Vault architecture improves capital efficiency compared to traditional AMMs, leading to better trading prices.

While traditional AMMs have played a crucial role in the growth of DeFi, the BGP represents a significant step forward in terms of security, efficiency, and fairness.

Common Questions About the Balancer-Gnosis-Protocol (BGP)

What tokens can I trade on the BGP?

You can trade any ERC-20 token that is supported by Balancer V2 pools within the Vault.The specific tokens available will depend on the liquidity provided by LPs.

How do I provide liquidity to the BGP?

You can provide liquidity by depositing tokens into Balancer V2 pools within the Vault.You'll need to choose a pool with the desired tokens and weights and then deposit your tokens through the Balancer interface.

What are the fees for trading on the BGP?

The fees for trading on the BGP are determined by the swap fees set by the liquidity pool creators on Balancer V2.These fees are typically a small percentage of the trade amount and are distributed to liquidity providers.

Is the BGP audited?

Both Balancer V2 and Gnosis Protocol have undergone multiple security audits by reputable firms.The BGP itself will likely be subject to additional audits to ensure its security and integrity.

Conclusion: The Future of Decentralized Trading with BGP

The launch of the Balancer-Gnosis-Protocol (BGP) marks a significant milestone in the evolution of decentralized exchanges.By combining the strengths of Balancer V2 and Gnosis Protocol, the BGP offers a more secure, efficient, and user-friendly trading experience that addresses some of the key challenges in the DeFi space.The BGP’s innovative approach to MEV protection, capital efficiency, and price discovery has the potential to attract a wider range of users to DeFi and drive further innovation in the ecosystem. Two of the most reputable teams in Ethereum launch a new DEX to deliver the best experience for tradersNEW YORK, NY / ACCESSWIRE / Ap / Balancer Labs, one of the leading automatedThe collaboration between Balancer Labs and Gnosis is a testament to the power of collaboration and integration in DeFi, and the BGP is likely to be a key player in shaping the future of decentralized trading.Key takeaways from this article are:

• The BGP combines Balancer's flexible pools with Gnosis' MEV protection.
• It aims to provide better capital efficiency and fair pricing.
• This partnership is a significant step forward for DEX technology.

Interested in learning more or participating?Keep an eye on the Balancer and Gnosis communities for updates and opportunities to get involved!The future of decentralized trading is here, and it's called the Balancer-Gnosis-Protocol.