Balancer (BAL) Balancer is an automated market maker (AMM) si | Crypto Great | Bitcoin | DeFi

Balancer (BAL)

Balancer is an automated market maker (AMM) similar to Uniswap. Balancer sets itself apart from DEXs like Uniswap by enabling its users to create liquidity pools with up to 16 assets rather than two.

This allows Balancer users to create a portfolio of assets with customized weights and be paid by market makers who rebalance their portfolio. It flips the traditional asset management structure on its head – giving restructuring fees to users, not asset managers.

After more than a year of development, Balancer V2 went live this month, proving to be one of the most flexible and efficient AMMs out there. With it, Balancer aims to give users the best token price at a low gas cost with a fully redesigned user interface. Some improvements include:
Balancer’s new protocol vault. This allows trades to pull liquidity from vaults, saving a lot of computational work and gas fees.
Plus, Balancer V2 users will receive BAL when swapping tokens on the new easy-to-user interface. This will also help lower the overall cost of gas fees.
On March 7, the community approved to increase BAL distribution. This should entice more liquidity providers on the network and give traders incentives to use the protocol.
Balancer V2 smart contracts are now on the Ethereum ecosystem. These are public and open source, allowing any developer to work on the network in full transparency. And they give Balancer flexibility to support different AMM smart contract logic.

Balancer’s V2 improvements to its security, flexibility, capital efficiency, and gas efficiency brings Balancer’s vision of being the primary source for DeFi liquidity much closer.