BAL is the native token of Balancer.
Balancer is a permissionless, non-custodial automated market maker program. It aims to let people make deposits into liquidity pools, earn a cut of the fees from transactions that utilise that liquidity, and maintain the balance of their portfolio without additional costs.
How to buy BAL
Follow these steps to purchase your first BAL.
- Compare crypto exchanges
The easiest way to buy BAL is from a cryptocurrency exchange. Use our comparison table to find an exchange with the features you want such as low fees, ease of use or 24-hour customer support.
- Create an account
To create an account on an exchange you will need to verify your email address and identity. Have some photo ID and your phone ready.
- Make a deposit
Once verified, you can deposit HKD using the payment method that best suits you – Bank transfer, debit card, wire transfer and credit cards are all widely accepted.
- Buy Balancer
You can now exchange your funds for BAL. On easier-to-use exchanges, this is as easy as entering the amount you want to purchase and clicking “buy”. If you like you can now withdraw your BAL to your personal wallet.
Where to buy BAL in Hong Kong
Compare exchanges that list the BAL token on things like payment methods, fees and features.
A step-by-step guide to buying Balancer
Want to buy Balancer? Follow these simple steps:
Step 1. Create an account on a cryptocurrency exchange that allows you to trade BAL
Compare exchanges that support BAL, then determine if the exchange you choose supports buying BAL with Hong Kong dollars (HKD), Bitcoin (BTC) or Ethereum (ETH). You’ll need to provide your email address and create a password to register for an account.
- Note: It’s also recommended that you set up two-factor authentication to provide an extra level of security.
Step 2. Deposit funds into your account
Many cryptocurrency exchanges only allow trading between cryptocurrencies and don’t allow the direct deposit of fiat currency, such as HKD, so you’ll usually need to own or buy BTC or ETH first.
- Note:The exact process for depositing funds into your account varies depending on the exchange you choose.
Step 3. Buying BAL
The final step is to trade your chosen currency for BAL on the exchange. Once again, the exact process you need to follow may vary slightly depending on the exchange you choose.
Which wallets can I use to hold BAL?
Unless you’re looking to place a trade, storing cryptocurrency in an account on an exchange is not recommended. Instead, it’s generally much safer to store your BAL in a secure wallet.
How Balancer works
At its heart, Balancer is a series of liquidity pools. Anyone can create a new pool and add funds to an existing pool and then receive a cut of the trading fees.
There are two kinds of people who use Balancer:
- Liquidity providers. They create or add funds to liquidity pools to earn a cut of the associated trading fees.
- Traders. They take advantage of the concentrated liquidity offered by Balancer to perform faster, cheaper trades than they might otherwise. Other smart contracts in the DeFi ecosystem can also tap into Balancer’s liquidity pools.
While there are many liquidity aggregators in DeFi, Balancer sets itself apart by letting liquidity providers enjoy automatic rebalancing of their portfolios, of up to eight assets.
It also aims to attract more depositors faster through “liquidity mining,” which is essentially an incentive scheme to reward people with the BAL token when they provide liquidity.
The idea is that liquidity begets liquidity, and as these pools grow, they become more useful and start attracting more trading fees, which in turn drive even more growth and more usability.
|Circulating supply (approximately, as of August 2020)||~7,200,000 BAL|
|Maximum supply||100,000,000 BAL|
What does the BAL token do?
BAL is a governance token. Its holders are allowed to practice governance rights on Balancer.
While not an inherently valuable function, this opens the door for the community to make decisions further down the line. For example, there may be a decision to reduce the maximum supply of BAL tokens, to curtail BAL token rewards or to start paying a cut of the liquidity pool profits to token holders.
It can also be bought and sold.
Key factors to consider when buying BAL
The native BAL token provides holders (or Balancer Governors) with the ability to vote on protocol decisions, including fee structure and how BAL tokens are distributed. As the platform grows so too does the need for the BAL token.
The maximum supply of BAL tokens is 100 million. 25 million were provided to the founders, advisors and investment team. A further 10 million are kept for running the ecosystem and the remaining 65 million were kept for distribution to liquidity providers (LPs). 145,000 BAL tokens are distributed per week to LPs which means the total supply will be fully liquid in 2028.
Although tested, the protocol is not without risks from smart contract malfunction, hackers and from general interconnectivity and reliance on other DeFi protocols.
How to sell BAL
If you want to sell your BAL holdings, you can do so by following a similar process to that outlined in Step 3. You’ll obviously need to look for the “Sell BAL” link, while it’s also worth remembering that you may not be able to directly exchange BAL for the currency you want to acquire.
Frequently asked questions
I have BAL tokens, do I need anything else to become eligible to vote on the Balancer platform?
Yes. Along with holding BAL tokens in your wallet, you must hold liquidity pool tokens from the Balancer platform. The LP tokens must be from a pool that includes the BAL token. Only then can voting power be delegated to you by another wallet.
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