Balancer is a decentralized protocol that provides DeFi liquidity infrastructure, which adopts powerful features to slash gas costs, super-charge capital efficiency, unlock arbitrage with zero-token starting capital, and open the door to custom AMMs. For more information on Balancer, check out docs.balancer.fi.

For Lido users, you can use Balancer on Arbitrum to easily swap from wstETH to WETH, USDC and LDO, and vice versa. Adding to this, get fees from LP'ing a number of pools including:

Note: to swap tokens or provide liquidity on Arbitrum, you will also need ETH in order to pay gas.

Using Balancer Pools, users can add liquidity to certain pairs to get swap fees. The wstETH/WETH and wstETH/USDC pools are - at the time of writing - incentivised by Lido in the form of additional LDO to liquidity providers in the pool.

There are two kinds of wstETH-related pools - Weighted and Composable Stable. Weighted pools are used for the tokens that don't necessarily have any price correlation, e.g. wstETH/USDC and wstETH/LDO, whereas Composable Stable pools are used for correlated tokens or pegged tokens like wstETH/WETH.