EN
Crypto
Balancer
BAL
Balancer
2.0547
3.27%
≈2.0551
Circ/Total Supply
60721670/65801814
92.3%
Volume/24h%
6407878.649404
3.27%
#193
24h Turnover
5.14%
Balancer is an AMM (automated market making) protocol similar to Uniswap that allows for the creation of flexible pools of liquidity that constantly adjust themselves. These pools of liquidity can contain multiple tokens with different weights, as well as customizable transaction fees. A Balancer pool can be thought of as an index fund in which liquidity providers are paid without having to pay maintenance fees, as in traditional finance.
Balancer has many differences compared to Uniswap which is completely decentralized. The first is that a liquidity pool can support up to eight currencies, while Uniswap can only support two. Secondly, each currency can be weighted so that there is no need to ensure that each currency in the pool has the same dollar value as Uniswap, which is convenient for market makers. But it also leads to the difference in the rate of change of price in the two directions of buying and selling. Finally, unlike Uniswap, which is completely decentralized, the creator of the Balancer liquidity pool has the authority to modify the transaction fees (0.0001%-10%), but in terms of income, all liquidity providers are the same.
Two types of pools can be created, public and private. Public pools have fixed weights and fees that allow anyone to put assets into the pool, while private pools allow creators to change parameters and cannot accept outside funding. Balancer also allows pools to be owned by smart contracts, allowing more sophisticated logic to dynamically adjust weights and fees. Because of these flexible parameters, Balancer has a typical pool template, Can benefit both traders and token holders. Some examples of the types of pools that dynamic balancer pools might use include:
| Distribution of tokens | Number of | Percent |
|---|---|---|
| Liquidity provider | 750000 | 75% |
| Team and Consultant | 75000 | 7.5% |
| Ecosystem Fund | 50000 | 5% |
| Raising funds | 50000 | 5% |
| Seed round investor | 50000 | 5% |
| Future employee option | 25000 | 2.5% |
