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.
|Circulating supply (approximately, as of August 2020)||~7,200,000 BAL|
|Maximum supply||100,000,000 BAL|
How does Balancer work?
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.
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.
How to buy BAL
Here’s a step-by-step guide for one way of buying BAL. Note that there might be other options available, so you may want to compare cryptocurrency exchanges to find the one that’s right for you.
More guides on Finder
How to make NFTs
Find out all you need to create your own NFTs – the new application of blockchain technology that enables digital ownership of assets.
AscendEX (BitMax) Cryptocurrency Exchange Review
A complete review of the AscendEX exchange, covering trading and DeFi features, associated fees, regulation and security. Is AscendEX right for you?
How to invest in cryptocurrency
Learn how to get started investing in cryptocurrency, the methods available to you, and what to keep in mind before making your first purchase.
Metamask wallet review and guide
All you need to know about Metamask – the browser extension digital wallet and a user-friendly bridge to the world of Ethereum decentralised applications.
How to buy Dogecoin (DOGE) in 3 steps
This guide explores how to buy and sell Dogecoin on an exchange as well as where you should store your cryptocurrency.
Binance Futures guide: How to trade BTC, ETH and more
Learn how to trade futures contracts on Binance with this visual step-by-step guide.
What is Yearn Finance?
Learn how to use DeFi aggregator Yearn Finance to earn interest on your cryptocurrency.
Cryptocurrency staking guide: How to stake coins for rewards
Staking is one of the most popular ways to earn an income with cryptocurrency – learn how to get started with this guide.
How to buy Filecoin (FIL)
Learn more about the Filecoin cryptocurrency in this beginner’s and buyer’s guide.
How to buy Polkadot (DOT)
Learn more about the DOT cryptocurrency in this beginner’s and buyer’s guide.
Ask an Expert