Balancer (BAL)

Balancer is an Ethereum-based Automated Market Maker (AMM) - a decentralized crypto exchange (DEX) that does not have accounts and order books.

Balancer is an Ethereum-based Automated Market Maker (AMM) - a decentralized crypto exchange (DEX) that does not have accounts and order books.

Although Balancer is similar to Uniswap and SushiSwap, one of its special features is the support for multi-asset pools. Pool owners can include up to 8 different assets in a pool.

Anyone can use Balancer to:

  • trade Ether (ETH) and ERC-20 cryptos against one another,
  • create liquidity pools, and
  • invest in pre-existing pools.

Balancer has multiple types of pools, such as:

  • Shared pools - these are open for anybody to contribute liquidity to.
  • Private pools - only the owner can control the pool parameters and add liquidity.
  • Smart pools - these are controlled by smart contracts.

The platform can be accessed through wallets (e.g. MetaMask), and DApp browsers.

Balancer users are of 3 types:

  • Liquidity providers - create their own pool or contribute to existing pools.
  • Traders and smart contracts - source liquidity for their tokens.
  • Arbitrageurs - capitalize on the price spread between exchange platforms.

Balancer's native utility token is BAL and is used for governance of the Balancer Protocol. BAL can be earned by providing liquidity or trading on the Balancer.

Balancer incentivizes trading by awarding BAL tokens in proportion to the median Ethereum gas price and the ETH/BAL exchange price at the time of an eligible transaction.

Useful links

Latest metrics