Balancer (BAL) is an automated market maker, decentralized exchange, and liquidity pool protocol built on Ethereum. On the 22nd of September, Balancer (BAL) was listed for trading on the Emirex exchange.
- Balancer is a decentralized finance protocol based on Ethereum that allows for automatic market-making.
- It offers multi-asset pools and allows anyone to become a liquidity provider.
- Each pool can set its own customized trading fee, which rewards liquidity providers who bear the risk of impermanent loss due to fluctuations in the value of the assets they hold in the pool.
- BAL native token acts as a governance token to help the project set features such as issuance rewards and whitelisted pools for liquidity mining.
- Token Standard - ERC-20
- Balancer Price - $14,93 USD
- Balancer ROI - -23,56%
- Market Rank - #87
- Market Cap - $103 656 498 USD
- 24 Hour Volume - $62 730 902 USD
- Circulating Supply - 6 943 831 BAL
- Total Supply - 35 725 000 BAL
- All Time High - $37,86 USD (Aug 30, 2020)
- All Time Low - $7,88 USD (Jul 15, 2020)
Balancer is an exchange for trading ERC20 tokens without using the order book. The project enables traders to exchange various cryptocurrencies with minimal cost and slippage. It aims to replace centralized market makers with peer-to-peer and non-custodial trading and exchange services. Balancer works on smart contracts and creates so-called liquidity pools, from which funds for trading are actually taken. Balancer pools have a lot of liquidity, so anyone can exchange any amount in cryptocurrencies. The project has released pool schematics, such as one for Liquidity Bootstrapping Pools or one for pools that attempt to remove the risk of LPs losing their assets.
Users can then use pools in two ways:
- Providing liquidity: Users can deposit supported assets into pools, providing liquidity to users of the pool. Those that deposit assets can earn a fee, though due to volatility and other factors, there are cases where liquidity providers can lose some of their assets.
- Trading: Users can trade tokens in a decentralized manner through pools, with Balancer’s smart order routing system ensuring the exchange of cryptocurrency at low fees and at quick speeds.
The main function of Balancer is to allow ordinary participants in the crypto market to join pools and stimulate them to add liquidity by depositing assets into smart contracts. Like many other DeFi protocols, Balancer rewards liquidity providers with a percentage that is charged to traders.
BAL is a native token created to reward liquidity providers. The token was released on June 23, 2020 based on the Ethereum blockchain. According to The Block analysts, on the first day, 1,000 investors became BAL token holders, and the initial emission was 35,725,000 BAL.
Immediately after its release, BAL was added to the Uniswap exchange. Traders instantly inflated the BAL price from $ 7 to $ 22, but the average daily trading volume remained relatively low.
On June 1, the Balancer developers launched liquidity mining in their protocol and already at the end of the month distributed 435,000 BAL. In total, liquidity miners (holders of DeFi assets and pool members) will receive up to 65 million BAL tokens. According to the white paper of the project, 25 million BAL will be distributed among the Balancer developers and 10 million BAL will go to the development of the ecosystem.
- 31 March 2020: Went live on main-net;
- 15 May 2020: Proposed Balancer Liquidity Mining;
- 23 June 2020: Introduced the Balancer protocol governance token (BAL) on main-net;
- 24 July 2020: Listed on OKEx;
- 6 Aug 2020: Listed on Binance;
- Sep 18 2020: Completed the token offering via Balancer Liquidity Bootstrapping Pool (LBP);
- 4 Oct 2020: Listed on Bitfinex.
The project is working on a detailed roadmap. The bronze release is planned to go live in February 2020. Silver is currently in a design phase and will likely release late 2020.
- Currently, it is a Bronze Release state. The Bronze Release is the first of 3 planned releases of the Balancer Protocol. Bronze emphasizes code clarity for audit and verification and does not go to great lengths to optimize for gas.
- The Silver Release will bring many gas optimizations and architecture changes that will reduce transaction overhead and enable more flexibility for controlled pools.
- The Golden Release will introduce several new features to tie the whole system together.
The Balancer Protocol is just beginning to amaze DeFi investors with its capabilities. It positions itself as a powerful competitive tool in the market that allows you to reduce transaction fees for various cryptocurrencies. It leads the market for liquidity pools due to its ability to create n-dimensional liquidity pools. With its unique formula that actively discourages large fees, Balancer has created a decentralized project that has the potential to become a self-contained system with a focus on the community.