What is balancer (Bal)?

What is Balancer? (BAL) Balancer is a decentralized finance (DeFi) protocol running on Ethereum that seeks to incentivize a distributed network of computers to operate a decentralized exchange where users can buy and sell any cryptocurrency.

What is balancer network & how does it work?

Balancer network connects a liquidity provider to a pool to execute a swap transaction. Furthermore, it is a non-custodial exchange that allows traders to swap assets for a fee that goes to pool liquidity providers. Did you know? Decentralized exchanges such as Kyber and Uniswap use Balancer protocol.

Is balancer a decentralized system?

This combination of elements results in Balancer being a decentralized system capable of market control. Other platforms that follow the same principle include Uniswap and Curve. Balancer is distinctive because its protocol can support several assets, unlike Uniswap, which only supports two.

What is a 'balancer pool'?

Instead, it introduces a concept known as 'balancer pools', which are essentially pools of between two to eight different cryptocurrencies that provide the liquidity required by traders. When a balancer pool is first created, the ratio of the tokens in the pools is set.