Balancer is similar to Uniswap and Curve, in that it enables anyone to create pools of tokens.
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What Is Balancer (BAL)?
Balancer is an Ethereum token that powers the Balancer protocol, an automated market maker that enables any user to create or add liquidity to trading pools while earning customized trading fees.
Balancer also runs automated portfolio management of tokens on the Ethereum blockchain and other EVM (Ethereum virtual machine)-compatible systems.
A significant part of the Balancer Ecosystem are Balancer Pools, which are the building blocks of the Balancer Protocol. Balancer Pools comprise the active Balancer Protocol smart contracts that specify how traders exchange tokens between one another.
A few types of pools:
- Private pools give the owner governance over the pool, and make the person the sole contributor of liquidity to the pool. Also, all the parameters are mutable by the owner.
- Shared pools are for those who want to become liquidity providers (LPs). The LPs are rewarded with the Balancer Pool Tokens (BPTs).
- Smart pools are similar to private pools but are controlled by a smart contract. They also reward using BPTs and allow anyone to contribute liquidity to the pool.
How Does Balancer Work?
Balancer will utilize whichever liquidity pools prefer to maximize the user’s rate-of-money relative to their base currency or other quoted market maker exchange. Therefore, it may be direct (e.g. ETH > BAL) or indirect (e.g. ETH > USDT > BAL).
The platform can be accessed through MetaMask, WalletConnect, or another wallet solution and DApp browser used for interacting with the Balancer smart contracts.
The History Of Balancer
Balancer Lab was started by Fernando Martinelli and Mike McDonald, but it began its life as a research project at software company BlockScience in 2018. The Balancer project boasts members from the smart, like-minded brethren with an expertise on DeFi data.
Is Balancer A Good Investment?
Balancer has introduced a new way to liquidity, and a unique feature within the protocol is allowing liquidity providers up to 8 assets per market which is rebalanced automatically and weighted by percentage. Being able to shape of how things are done within the crypto space is an indication for a great project.
Back in April 2021 you can see BAL hitting an all time high of $71.88:
Unfortunately many factors can contribute to a decline of a crypto project, whether that is investors losing confidence in the project or due to external elements such as the overall economy tanking. The question is whether BAL has gained sufficient confidence in investors and will that propel a recovery in a new bull run (if we do get one).
To stay up to date with the current BAL price data, click here.
Should You Buy Balancer (BAL)?
Only if you have done your due diligence on the Balancer project and you are fully sold on the future of it. However it’s always worth only buying a few coins and never investing all your capital on a project. Remember that cryptocurrencies can be risky, so invest wisely and be careful with your hard earned money.
The Balancer Whitepaper
Balancer released a whitepaper that describes the solutions that it is trying to solve, as well as proposed adoption dates for it.
If you want to read the Balancer whitepaper click on the button below.
How Many Balancer (BAL) Coins Are There in Circulation?
Balancer has a maximum supply of 100 million BAL coins.
How Can You Buy Balancer (BAL)?
It’s actually quite easy to buy BAL coins. All you need to do is follow these four basic steps:
- Create an account on a cryptocurrency exchange that lists BAL. Below we share some of these exchanges.
- Complete the identity verification process. Some exchanges require a scan of an identity document such as a passport or driver’s license.
- Transfer money from your bank account to the crypto exchange. The exchange may accept other payment methods, but bank account transfers typically have the lowest fees.
- Once the money is available in your account with the exchange, select the “buy” option to purchase BAL.
Where Can You Buy Balancer (BAL)?
If you would like to purchase some BAL coins, below are a handful of cryptocurrency exchanges which offer them.
Remember to bookmark and revisit this page to see if more exchanges have been added.