Balancer (BAL)
- Category: Polygon Ecosystem
- Coin Launched: January, 2018
- Resources: White Paper
- Official Website: Balancer
- Reddit: Balancer
About Balancer
Balancer is a multi-token automated market maker (AMM) that functions as a self-balancing weighted portfolio protocol. Balancer is built on the Ethereum network. It allows anyone to create or add liquidity to customizable pools and earn trading fees.
Compared to a typical constant product AMM model, Balancer uses a generalization formula that could be adjusted to any number of tokens at any amount of weight age.
BALANCER History / Information / Buying / Staking
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BALANCER HISTORY
Balancer is an automated market maker (AMM) that was developed on the Ethereum blockchain and launched in March 2020. It was able to raise a $3M seed round by Placeholder and Accomplice. Balancer protocol functions as a self-balancing weighted portfolio, price sensor and liquidity provider.
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HOW BALANCER WORKS
Balancer is an AMM, DEX, and liquidity pool protocol that can be used for swapping ERC-20 assets without needing to rely on any centralized entities. As a permissionless platform, anybody can access Balancer, so long as they have a supported wallet installed (MetaMask, WalletConnect, Portis, Coinbase Wallet, or Fortmatic).
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BENEFITS OF USING BALANCER
Some of the benefits of using Balancer are:
SWAP FEATURE
This allows arbitrage traders to easily profit from rebalancing pools, with yields sent directly to the user and there is no need for any tokens to be spent. Simply spot the arbitrage opportunity and reap the rewards.
DECENTRALIZED
One of the main benefits of decentralisation is that it makes it simple for day traders to get started – there is no need for users to sign up for a Balancer account and no custodial risk over one’s funds. All that is needed is an Ethereum wallet.
WEIGHTED POOLS
Balancer is a market leader with its innovative multi-token pools. These increase the opportunities available to traders and liquidity investors alike.
PROTOCOL
The Protocol Vault reduces gas costs by reducing the number of transfers required between the individual pools to complete a transaction. -
CAN YOU STAKE BALANCER
You can stake Balancer protocol as it rewards BAL holders who take a long-term view through staking of their BPT, while still ensuring BAL is not sitting idly staked but within a BAL pool.
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COINS SIMILAR TO BALANCER
Direct competition to balancer which are considered similar coins are:
CURVE DAO AAVEBAKERYSWAP UNISWAPPANCAKESWAP