Balancer (BAL) Balancer is a next-generation portfolio manage | Crypto Great | Bitcoin | DeFi

Balancer (BAL)

Balancer is a next-generation portfolio manager and AMM on Ethereum. It’s similar to Uniswap in that it uses liquidity pools to provide a DEX and gives liquidity providers a portion of trading fees for supplying their assets. Balancer separates itself by allowing users to create custom weighted pools with up to eight assets.

Balancer is overhauling its format for initial DEX offerings (IDOs). IDOs are similar to initial coin offerings (ICOs), which were famously used in 2017 as a way for new projects to raise funding.

Balancer is a superior platform for IDOs, since its liquidity pools are fully customizable,allowing new projects to pair their token with any of the 163 ERC-20 tokens on Balancer. And buyers can purchase the new token with any ERC-20 token supported on Balancer.

These customizable pools also lower the barriers to entry for new projects since they require less capital up front. This is because projects can adjust the weights in the Balancer pools from the common 50–50% weights of other Ethereum-based DEXs. In fact, the first IDO on Balancer launched its pool with a 10–90% split, meaning it only needed to fund 10% of the launch.

Soon, Balancer will have a more user-friendly interface for DAOs and make it easier for investors to buy these new projects. We believe this will lead to more projects choosing Balancer to launch their token.