What is balancer? Balancer is a blockchain project that provides risk-free profits by offering private and public liquidity pools to users. In this article, you can find answers to frequently asked questions such as what is Balancer, what it offers, what is BAL coin, how to get it, what is it used for. As Kriptokoin.com, we have prepared it for you.
What is a Balancer? What does the project offer?
Balancer is a DeFi-focused blockchain project that offers users the opportunity to generate income regardless of market volatility. The native cryptocurrency of the project is BAL coin. Built on the Ethereum Blockchain, the protocol is in the “Automated Market Maker Protocol (AMM)” class. Therefore, Uniswap or Curve Finance etc. it has to compete with other major AMM protocols. The strongest feature of the protocol is that it uses “Smart Pool” pools controlled by smart contracts.
AMMs are protocols that enable decentralized asset trading using algorithms and smart contracts to determine the price of assets. Such projects include liquidity pools where users can earn cryptocurrency rewards. The liquidity pools of the protocol are divided into private and shared. Private pools are owned by a specific investor and create liquidity space for that person. Shared pools, on the other hand, have multiple investors who want to benefit from token rewards. The protocol, founded by the two creators of Maker’s DeFi community, recently integrated with the scalability solution Polygon and Arbitrum network, which offers high speed and low transaction fees.
What is BAL coin? What is it used for?
BAL coin is a token that works as the native cryptocurrency of the Balancer platform. Users of the DeFi protocol receive BAL coin rewards, in addition to earning additional tokens based on the transaction percentage of each asset they place in shared liquidity pools. Therefore, the main purpose of the BAL token is to attract users to liquidity pools.
In addition, the BAL token also acts as a governance token similar to the native cryptocurrency of many blockchain projects. BAL holders vote on decisions that determine the future of the platform. This is the key to the decentralization of the protocol.
How to get BAL coin?
BAL coin, the native cryptocurrency of the Balancer project, is listed by many crypto exchanges. Among these exchanges, it is listed by major and trusted crypto exchanges such as Coinbase, Binance, and Huobi Global. Interested investors can purchase BAL tokens by signing up for one of these exchanges and depositing money.
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