Hello everyone! I’m Jesse and it’s my pleasure to welcome you to the “Wealth Mastery” family. With each new asset comes that deep dive into the potential it can have for us and stacking those sats. So every week we’ll have a look at the latest blockchain protocols on the scene and help answer some of your pressing questions. This week we’ll be diving into a new exchange called Balancer.
Introduction
Balancer isn’t the standard execution of an exchange we usually see. Instead it chooses to operate more independently by using non-custodial liquidity pools to perform as automated market makers (AMM). Giving Balancer properties that enable it to function as a self-balancing portfolio manager. But, at the same time shares similarities to the functions we’re used to seeing with other ETH swap platforms.
The difference with Balancer comes with the ability for any person or party to add and manage a liquidity pool or join an existing one to share in exchange fees collected on the platform. These liquidity pools are controlled by smart contracts and will eventually be able to install any arbitrary trading strategy or logic on behalf of the contract holder. Earnings are based on the trading volume in proportion to your liquidity pool and as you’d expect with this type of model, the more people that use the platform the more the liquidity contract pays.
The Token
The economy on Balancer works in the form of the exchange’s native token (BAL). It’s your standard ERC-20 token on a GPL3-licensed Ethereum smart contract. Allowing you to link your Metamask or WalletConnect compatible Ethereum wallet and swap ETH for any other ERC-20 token on the platform. No email, login, password or KYC necessary. The standard plug and play we’ve come to expect from anything that refers to itself as DeFi. Trades are split through a smart order routing system which performs an optimization across all current liquidity pools for best price execution. The token itself bestows governance rights to holders allowing them to vote on issues like protocol fees and new features, but governance has not yet been implemented into the protocol.
Currently there’s a total supply of 35,580,000 BAL tokens available. With almost 30% (10,000,000BAL) of the supply allocated for future fundraising and liquidity mining which officially started June 1st. Payment of earned tokens is set to be distributed on a weekly basis to liquidity participants. Serving as a great mechanism to incentivize pool owners to continue using the platform and grow the self sufficient exchange Balancer wants to create. With around 50 assets currently available to swap on the platform, it’s off to a good start in offering a variety of options. The majority of the exchanges current $6 Million USD daily trading volume is being executed in mostly ETH, WETH, BAL, and USD Coin.
In comparison to other exchanges available to buy BAL tokens, Balancer exchange is receiving around 18% of that total volume. With the majority of BAL token purchases being made via USDT on other exchanges that carry less than spectacular trading trust score. So the true volume and interest in BAL tokens is something we’ll have to get a better idea of in the coming months, as more well-known exchanges list the token.
The Founders
As of this time the team consists of CEO Fernando…
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
