Balancer - A Very Important DeFi Project
Creating Liquidity in the Crypto Space
Concise Crypto
April 26, 2023
Balancer (BAL)
What is Balancer?
Balancer is a token swap platform built on Ethereum, that allows users to create their own trading pairs and provide liquidity for a variety of Decentralized Exchanges (DEX’s). Users can create liquidity pools with up to 8 different digital assets. When prices or volume change with trades, the protocol balances the number of tokens to maintain the initial proportion of value. Very Interesting.
Why does Balancer have value?
Balancer brings liquidity to the world of Decentralized Finance (DeFi) allowing traders and everyday crypto users access to a variety of tokens and swaps. Traders can benefit from Balancer prices and fees, which are usually better than other DEX’s. Also, liquidity providers can arrange their pools in many different ways, to maximize their return according to the price of each token.
What are the Pros of Balancer?
● Provides a liquidity source for many tokens that have low trading volumes
● Liquidity providers can set their own fees
● You can earn rewards through holding the BAL token
What are the Cons of Balancer?
● It’s got a steep learning curve for crypto newbies.
What are Balancer’s tokenomics?
The maximum supply of BAL is 96,150,704. There are 46.6 million currently in circulation, from a total minted supply of 54,704,221. 15 million were distributed at the moment of launch. 145 thousand BAL are distributed weekly to liquidity providers.
Who founded Balancer?
Fernando Martinelli and Mike McDonald who have engineering backgrounds and had prior stops at Microsoft, Google, and McKinsey & Company.
Who are Balancer’s investors?
Balancer Labs has conducted three funding rounds, raising $32.3 million. Its major investors are Kain Warwick, Fenbushi Capital, Blockchain Capital, Continue Capital, Fintech Collective, LongHash Ventures, Pantera Capital, CoinFund, Alameda Research, DeFiance Capital.
Concise Crypto Grade
A: Balancer adds an interesting twist to the automated market maker (AMM) field, by offering the ability to create multi-asset liquidity pools. The fact that liquidity providers can set their own fees is also very positive for the end user. Balancer acts as an infrastructure tool for the entire Ethereum ecosystem by providing liquidity to a number of protocols (tokens/coins) and Web3 apps.
Where can I buy BAL?
Binance, Bithumb, Coinbase Exchange, Kraken, KuCoin, Bitfinex.
What ecosystem does Balancer run on?
Ethereum, Polygon, Arbitrum, Optimism, and Fantom