DeFi Deep Dive – Balancing Crypto Assets with Balancer

[LazY]

The decentralized finance space has become increasingly crowded in recent months. New protocols, exchanges, and automated market makers are launching on an almost daily basis. One of the original protocols feeding many of those new ones, is Balancer, and it is still going strong.

The Ethereum based automated market maker allows users to create or add liquidity to customizable pools and earn trading fees. Balancer derives its name from the formula it uses. As such, it essentially allows any number of tokens in any weights or trading fees into to its custom pools.

The protocol is designed two categories of user:

Liquidity providers who own Balancer pools or participate in shared pools.
Traders who buy or sell the underlying pool assets on the open market.
Over the past 12 months, the collateral locked into the platform has exploded from around $2.5 million to over $2 billion. This securely places Balancer in the top ten largest DeFi platforms on the planet.

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