Latest Update: Balancer is set to organize an “Ask Me Anything” (AMA) session in collaboration with Tally on July 25th, at 17:00 UTC.
About Balancer: Balancer, an automated market maker (AMM), was introduced on the Ethereum blockchain in March 2020. It operates as a self-adjusting weighted portfolio, price detector, and a source of liquidity. The platform enables users to gain profits through their participation in modifiable liquidity pools. Balancer empowers the formation of token pools, which auto-balance to keep equal weightings, irrespective of price fluctuations.
The protocol introduces various pool types: private pools, fully managed by the owner; shared pools, where liquidity providers can earn Balancer Pool Tokens (BPTs); and smart pools, controlled by intelligent contracts, that also issue BPTs. Balancer distinguishes itself by permitting up to eight assets in a single market, weighted by percentage and auto-rebalanced, hence offering exclusive liquidity and arbitrage opportunities.
Balancer unveiled its governance token, BAL, to decentralize control and incentivize liquidity providers. Out of the total 100 million BAL tokens, 25 million were set aside for the team and stakeholders, 5 million for the Balancer Ecosystem Fund, and another 5 million for fundraising efforts. The remaining tokens are mined by liquidity providers at a pace of 145,000 per week, with an estimated distribution period of approximately 8.6 years.
