Balancer

What is a balancer (BAL)?

BAL is the Balancer’s governance token, which Ethereum-based automated market maker (AMM). The Balancer price chart above displays the current price of BAL. Essentially, AMM is an autonomous protocol that powers decentralized exchanges (DEXs) liquidity pools. Therefore, first of all, Balancer is a liquidity provider. Users can create their own Balancer liquidity pools or contribute to existing ones.

However, Balancer can also be used to find the most competitive rates and make cryptocurrency trades at the best prices through Smart Order Router (SOR). In addition to this, Balancer also allows users to create self-balancing index funds.

Going back to the concept of liquidity pools, Balancer offers many different pools, including weighted pools, stable pools, metastable pools, bootstrap liquidity pools, and managed pools.

Looking at the larger categories, Balancer offers three main types of pools: private, smart, and public. Private pools have an owner who is the sole source of liquidity for that pool and has complete control over it. Smart pools also similar to private pools, the only difference is that they are managed smart contract. However, communal swimming poolsUnlike private or smart pools, they have multiple liquidity providers.

There are several features that distinguish Balancer pools from other AMM pools:

• Balancing pools suspendedThis means that they can be modified depending on price changes.
• Liquidity providers can add up to eight assets each liquidity pool.
• Balancer users can contribute as many supported assets as they want.
• Balancer users can profit from arbitrage and reduced slippage for production high returns from assets with low demand.
• Some Balancer pools have Oracle functionality. This allows them to act as price probes for pool tokens.

So how exactly does the Balancer liquidity pool work? Each token in the liquidity pool has its own weight. Balancer modifies these weights as needed to maintain a stable pool value. Whenever the prices of certain assets change, the proportions of assets held in the pool are rebalanced. In addition, for every trade made in the pool, the pool owner is charged a commission.

Founders of Balancer

The Balancer cryptocurrency project was founded by Balancer Labs in 2020. The founders of Balancer Labs are Fernando Martinelli and Mike McDonald.

Fernando Martinelli is an entrepreneur with education in robotics and image, as well as international management. In addition to creating Balancer, he also co-founded projects such as the game Cybercafé, PrepLounge and Brasil Mate.

Mike McDonald is a security engineer. In addition to Balancer, Mike also founded MKR.tools, a MakerDAO data analytics platform.

Even though Balancer was founded in 2020, the entire concept of Balancer was initiated in 2018 as a research program in BlockScience.

Options for using BAL tokens

The main purpose of BAL tokens is control. This means that Balancer token holders can vote on various decisions regarding the future development of the Balancer crypto project. Although in addition to this, BAL tokens are also used for rewards for Balancer liquidity providers. Be sure to check out the Balancer price chart above if you’re interested in the current BAL price.

Tokenomics BAL

Initially, 100 million BAL tokens were created. 65% of the tokens were dedicated to rewarding liquidity providers, with plans to issue 145 thousand tokens every week. The remainder was dedicated to the team, core developers, investors, advisors, Balancer Ecosystem Fund and fundraising fund.

Please be aware that the price of BAL may change if you are looking to purchase Balancer tokens. This is because the volatility of the entire cryptocurrency market significantly affects the price of Balancer. In fact, this is the same as with the prices of other crypto assets.