What is balancer token?

Like many modern DeFi applications, Balancer features its own native utility token, known as the Balancer token (BAL). This is used for participating in the governance of the Balancer Protocol and can be earned by providing liquidity or trading on the platform. How Does Balancer Work?

What is balancer (Bal)?

It might help to think about Balancer as a kind of index fund, where users create funds based on the cryptocurrencies in their portfolios. These funds are known as Balancer pools, and any user wishing to provide liquidity to a pool can do so by simply depositing an asset in them.

Is balancer decentralized?

Remember, Balancer is decentralized, allowing for anyone to create a pool for any crypto asset, with any parameters. Ethereum users created pools for transfer fee/deflationary tokens, which burn a portion of the coins sent in transactions. The problem is that Balancer Labs warned against this, placing deflationary tokens in pools.

What is balancer protocol?

The Balancer Protocol was launched by Mike McDonald and Fernando Martnelli, two active members of the Maker DeFi community. Like most groundbreaking decentralized applications, Balancer runs on the Ethereum blockchain. To understand Balancer, we need to understand how an AMM (Automated Market Maker) works. What’s an AMM?