On the surface,Balancer (Bal)It seems only anotherDecentralized exchangeagainstUniswap.
But in reality,The balancer is a defi powerThe platform offers a full range of tools for automated portfolio management, performance agriculture, gas gas -token -kärtshandel and custom DEX solutions.
This guide helps you to understand what is blessing and how you can use your powerful variety of defi tools.
What is Boancer (BAL)?
Baldan calls itselfAutomated portfolio administratorIn our modest opinion, this is a bit misleading.Before we enter why we take a quick distraction in the history of the Balanches.
In 2018 BalanceBlock ScienceBefore he becomes Balanco Labs.
Like Balance Labs, the team started early versions ofStable coin liquidity swimming poolsAnd it was one of the first protocols forIntroduce liquidity reduction.
Here we return to the automated concept of the portfolio amplator.So pay close attention.
In short, Balder had built another oneAutomated market manufacturer (AMM)Decentralized exchange.An AMM replaces the buyer's colleagues who can be found in traditional stock exchanges through crowdsourcing liquidity in insured and operated pools, and operated by crowdsourcingIntelligent contracts.
Balder quickly realized that the standard liquidity group format popular by Uniswap had strict restrictions.These groups need a deposition of two assets of 50/50, a department that is often used in the creation of personalized groups based on real wall pockets.
Think of your wallet.Do you have the same weights of two tokens or do you have several cryptocurrencies in different value quantities?
If your wallet is closer to the latter, don't be surprised.The approach to index base is popular to alleviate the risk of diversification in several assets.
Therefore, the unique Balanches version via the decentralized exchange enables the creation of liquidity groups with up to eight different assets.
When people create liquidity groups or put them off, the offer side of the decentralized compensation exchange is counted.Thanks to the increasing mix of assets in these pools, the decentralized compensation exchange is possible.
All of this represents why we believe that Balder will be sold at short notice of his product as an automated portfolio administrator.It is a decentralized exchange, a customizable frame and a predatory index background.
Next we look at a deep look at how Balcer works.
How the balancer works
For the majority, the balance balance is a decentralized exchange forDealerExchange token with fewer gas costs per operation.
To offer your trade liquidity, the other side of the balancer is builtLiquidity supplier.Unissa andPancakeWith the balancer you can provide you with pools with up to eight weighted chips.
Several liquidity groups balancing a third player into the ecosystemArbitratorThese merchants are administered for the management of the designated weights of the purchase or sale of liquidity pools if the market prices are available.
This configuration is also common for most decentralized AMM exchanges.balanced.
While the basic formula, how Balancia works, is similar to other dexes, the key features of the platform are the opposite.
Private pools
With private equilibrium liquidity pools, a creator can fully adjust the pool, including assets, weights and other automatically administered configurations.Only the permissible instructions can interact or provide liquidity for the pool.
Public pools
Everyone can contribute to public balance pools.These are also customizable from the start, but its design is final and cannot be changed after the creation.The creators of the liquidity pool can define things like commercial installments, logic collection and much more.
Liquidity starter pool (LBP)
SwingThe types of more popular personalized liquidity pools and have so far been well received.Balancer Smart PoolLBPs are just one of the many programmable liquidity groups that will enable the platform.
In fact, an LBP replaces the ICO/IEO/iodine model with a design that is intended to frustrate whales that collect all sales signs.
The way in which an LBP bar works is simple: we pretend that a project begins and increases the reserve liquidity.
At the beginning, create a balance pool with two tokens:
- TU Token XYZ
- DAI as a reserve power value
The goal is to collect DAI for reserve by exchanging your token XYZ.Therefore, the rest of your pool begins very biased into the XYZ file.At the end of the sale, the pool is now strong towards Dai.
Retail investors love the Boancer LBPs because they make it easier for everyone to sell the sale of tokens of a project.
The possibility of gaining cheaper tokens is ruthless that deep whales make unique essential purchases.In the event of changes, buyers are asked to buy several times throughout the LBP in order to achieve good average costs in dollars.
March,HidratexA polkadot base protocol,Successfully collected 23 million DAI, sells 87% of his HDX token.
Decentralized exchange
The vast majority of people know the balance than a decentralized exchange.If it does not deliver liquidity any of the swimming pools, Exchange -token is the best in Balancia.
Like other AMM decentralized stock exchanges, balanceboles,Smart Order Router V2.
Smart orders routing, or Sr. V2, is the Balanche form that makes your offices efficient.Balancer sor sor its multiple swimming pool to rebuild the lowest possible prices when tasking an order.
Sor V2 carries out low costing without consuming a lot of gas, but the secret as it does is reduced to theBalance VaultThen Balanches consists of tons of different swimming pools with many assets, we already know.
But the stock market board through tons of pools creates manyjumpOr steps that cost gas.To reduce the number of jumps between the pools and the final transaction, the equilibrium vault collects all assets in the pools and then distribute their trade there.
Imagine the safe as a cooking instructorYou have many ingredients (assets), you can organize in various dishes (liquidity swimming pools) and order you as from guests (dealers).
In this way, balance routes are cited by many groups and at the same time reduces the approvals of transactions from many to one.
Who benefits from the balanced Dex dealers with large orders?Every person looking for reduced slide costs and complicated orders for whom several asset exchanges are required are the main candidate for the remaining amount of the balancers.
Liquidity supplier
Balancers belong to a handful of Defi platforms that are innovativePerformance agricultureThis is because the equilibrium protocol used crowdsourcing liquidity to replace intermediaries with automated markets that are operated by intelligent contracts.
Obviously, the compensation impulse to gain liquidity works works because the platform contains a deposited assets of almost 9,000 liquidity providers of almost 2 billion US dollars.
Liquidity suppliers only achieved an orderly profit of 63.6 million US dollars last week.It's not bad, isn't it?But where do you get all the money from?
Balance Liquidity Suppliers earn money from two sources:
- Commercial quotas
- Liquidity pool administrator prices
Every time someone exchanges assets in your liquidity group, you will receive interest rates for this trade.How much does the pool win after operation?Depends on.Liquidity group can set your own rules for prices, but one thing is certain: the interest rate is divided between the pool protocol and the balancer.
The interest rates of the asset manager refer to the interest rates paid by the arbitration proceedings that solve the imbalances in the liquidity groups.They are encouraged to compensate for the pools for the profits that are achieved from the price movement discrepancies between the swimming pools.This model works incredibly incredibly for LPS has been a high -frequency negotiation strategy since arbitration procedure that accumulates the rates for the group.
Balance Vault
We played themBalance VaultIn the previous Dex discussion, but we will dive a little more.
If you insert token in a group of balancers as a supplier or liquidity dealer, there are two sets of intelligent contracts at work.
- Liquiditätspool Contrata Con Logic AMM
- Master Vault contract with the token management logic
Balbol can enable the pool of the pool to set their own AMM rules and to be fully adjusted in various sentences.This is a big point of sale for the protocol.
In this way, you can also have a Master safe contract that monitors all tokens in all pools.
Why should you want to do that?For a few good reasons.
Firstcan include the operations in many groups, but receive all assets of a contract (fewer transaction permits = lower gas costs).
Second, TThe vault holds the bellows of individual pools between the separate pools, which makes the safe very safe.
Asset manager
According to her mind, making liquidity groups highly adaptable, Balder contains a brilliant V2Asset managerProduct.
The asset administrator is an intelligent contract that contains administrative logic for the assets in the group, to which it is assigned.
Let us assume that you have created a liquidity group that made to take assets and for credit protocols such asGeistPresentConnection, yCurveIncreasing the yields for LPS.The asset manager is the contract that automatically implements his strategies with group funds.
Pools with asset managers are very similar to indices or ETF funds.However, some people do not like the authority granted, since they should be granted a high degree of trust.
Balance approaches the problem of trustAssociate with protocols like AaveTo carry out the first asset managers.
token de equilitonOr Bal, it is the governance sheet for the balanced Defi platform.The token -Bals design is refreshingly easy.
Basic token concepts
- Current price: $ 16.01
- Market night: $ 172,890,965
- Maximum care: 100,000,000 BAL
- Current offer: 10,799,858 Bal
- Total blocked value: 1.8 billion US dollars
- Negotiation volume: 20.089.461 USD
- Token Standard: ERC-20
- TOKEN utility: Governance
Governance Token
Balancer is a decentralized financial platform.hatBalance, decisions are made by decentralized coordination.
Who can vote in the decisions of the equilibrium network?Some wallet that marks at least one of these boxes:
The main problem with equilibrium voices is how to spendGovernable protocol ratesGPF are the partial sentences that are collected from shops and flash loans using balance pools.
Balder developed like offsidesnapshot, the coordination tool from the chain that is almost usedeveryThe existing Defi protocol.
Liquidity reduction
To attract his TVL of almost 2 billion US dollars, balanceWBTC-Weth Oracle weight poolYou will see an APY estimate.
Cast your mouse on the Sparkles emoji to see a collapse of the rewards.Bal.
Balder has no real rival in the Defi area, with the exception of1 inch exchange.
1 inch is an aggregator from Dex, which means that you enter your order in different protocols Defi to get the best cryptography prices.If Balanche does not add prices and routing to other protocols.tutAdd its many pools with diversified cryptographic assets.
In practice, the balancer and 1 inch are excellent decentralized exchange to mitigatePrice slipBut because the balancer runs all its businessinternWith a vault that adds assets in all liquidity groups, the gas costs tend to be cheaper than in the 1 -inch exchange.
However, the 1 -inch exchange offers deeper liquidity, since it includes many decentralized stock exchanges in addition to its own liquidity groups.
As always, the best decentralized exchange is always the one who offers compensations that adapt to their specific needs.Does the deepest liquidity need?