Balancer has pioneered a good deal of innovation in the DeFi space, and it is one of the most widely used liquidity protocols.
Balancer Labs has helped create Balancer Protocol, a core part of Blockchain’s DeFi community. Balancer is an automated market maker, decentralized exchange, and liquidity pool protocol built on Ethereum that allows people to create or add liquidity to trading pools while earning customizable trading fees. When users swap tokens, their orders are filled by multiple pools with better pricing and lower slippage.
Balancer Pool is an automated market maker with specific fundamental properties that cause it to function as a self-balancing weighted portfolio and price sensor. Balancer turns an idea of an index fund on its head; instead of paying fees to portfolio managers to rebalance their portfolio, one can collect payments from traders, who rebalance their portfolio by following arbitrage opportunities. It is based on a particular N-dimensional surface, a cost function for exchanging any pair of tokens held in a Balancer Pool. Balancer’s native BAL token is known as a governance token. BAL holders vote on proposals relevant to the Protocol, such as new features and directions of where the Balancer Protocol should go. These proposals range from Protocol fees to how BAL tokens themselves are distributed, notably, the allocation of BAL tokens towards the Balancer Liquidity Mining program. Balancer Protocol’s success comes from the Balancer Labs team and members of the Balancer Community, and the projects built on top of it. The Balancer Grants program provides support and funding to projects committed to bringing Balancer Protocol a step nearer to becoming the leading platform for programmable liquidity. Developers leverage Balancer Protocol as a permissionless building block to create new treasury management systems.
Balancer is an automated market maker, decentralized exchange, and liquidity pool protocol built on Ethereum that allows users to provide liquidity for multiple assets simultaneously. To learn more about them, get connected to them on Twitter @BalancerLabs.