Exactly, and it allows the protocol to “farm on a 2x leverage” : when the protocol is market making, the FEI its mints to provide liquidity comes from nowhere & is destined to be burnt. That’s what the protocol is doing in the FEI/ETH pool. It earns transaction fees with 2.5B$ liquidity, with only 1.25B$ of collateral. At least that’s one way to see it.
If Balancer v2 is not ready (or we deem that “new protocol” not mature enough), there is also the Curve pool factory.