What is Balancer?Balancer is a decentralized automated market maker (AMM) protocol built on Ethereum that represents a flexible building block for programmable liquidity.
By separating the AMM curve logic and math from the core swapping functionality, Balancer becomes an extensible AMM that can incorporate any number of swap curves and pool types.
– Traditional 50/50 weighted pool– Custom weights like 80/20 for controlled exposure– Stable swap curve– Nested pools (ex: Boosted Pools)
– Pools with changing weights (ex: Liquidity Bootstrapping Pools)– Concentrated liquidity pool- Managed pools that allow customizable parameter– Entire protocols to be built on top (ex: Gyroscope)
Who uses Balancer?Balancer is an incredibly useful tool for a diverse set of actors in the Defi space.Swappers can swap between any two ERC20 tokens.
Liquidity Providers (LPs) can add liquidity to pools to earn swap fees, liquidity incentives, and other forms of yield.Arbitrageurs can swap against pools using things like batch swaps and flash loan
BAL TOKENBalancer Governance Token (BAL) is the core token behind the Balancer protocol. Alignment between governance token holders and protocol stakeholders is crucial for successful decentralized governance, and BAL tokens are the vehicle to drive this alignment