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Balancer (BAL): How it works and where to buy it

Learn more about how Balancer works, why the BAL token is useful and where to buy it.

Learn about Balancer Learn more
Where to buy BAL Find BAL exchanges

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.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade.
CryptocurrencyBAL
Circulating supply (approximately, as of August 2020)~7,200,000 BAL
Maximum supply100,000,000 BAL
TypeERC20
PurposeGovernance

What is DeFi? Read the beginner’s guide

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:

  1. Liquidity providers. They create or add funds to liquidity pools to earn a cut of the associated trading fees.
  2. 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.

Name Product Deposit methods Fiat Currencies Cryptocurrencies
FTX Cryptocurrency Exchange
Credit card, Wire transfer, Silvergate Exchange Network (SEN), Signature SIGNET
USD,EUR,GBP,AUD,HKD,SGD,TRY,ZAR,CAD,CHF,BRL

69
cryptocurrencies

FTX is an exchange built by traders for traders, with a range of derivatives markets such as options and futures with deep leverage, in addition to standard spot markets. Note: Not available for US customers.
Gate.io Cryptocurrency Exchange
Cryptocurrency
USD, EUR, GBP, HKD, SGD, AUD, CHF, MXN

818
cryptocurrencies

Finder exclusive: New users get $90 worth of Gate.IO points and an airdrop of $5 in GateTokens if trade volume exceeds $100 in their first week. T&Cs apply.
A feature-rich exchange with over 700 tokens including derivatives, yield farming and lending products.
Crypto.com App
Credit card, Cryptocurrency, PayPal, TransferWise, SEPA
USD, AUD, CAD, CHF, EUR, GBP, NZD, SGD, JPY, ZAR & 9+ more

153
cryptocurrencies

Buy 100+ cryptocurrencies, earn up to 14.5% p.a. on holdings, pay with your crypto for cashback at stores, get loans and more with this complete crypto-finance platform.
Binance Cryptocurrency Exchange
Bank transfer (ACH)
USD, AUD, GBP, EUR, RUB, TRY, NGN, UAH, PHP, CZK & 20+ more

314
cryptocurrencies

Promo: New users earn up to USD 100 in bonus rewards on qualified deposits and trades. Valid till 31 December 2021. T&Cs apply.
Finder Exclusive: Get 10% discount on your fees when signing up through Finder.
Trade an extensive range of reputable coins on this world-renowned exchange, popular for its high liquidity and multi-language support.

US residents: As of September 2019, US-based users can only trade USD on the American dollar onramp of Binance, Binance.US.
UK residents: In addition to normal crypto trading services, Binance offers margin lending. As this is a regulated activity which they are not authorised to offer in the UK, we advise you not to use this service. If you're interested in margin trading, see authorised providers.
KuCoin Cryptocurrency Exchange
Cryptocurrency, PayPal, Wire transfer, Credit or Debit Card, SEPA
USD, EUR, GBP, RUB, CNY, AUD, KRW, JPY, TRY, VND & 40+ more

434
cryptocurrencies

Finder exclusive: Sign up and use code 1xf56 for one month of VIP 1 benefits. Deposit/transfer more than 0.1 BTC to KuCoin within 7 days of registration for 1 month of VIP 2 benefits. T&Cs apply.
Browse a variety of coin offerings in one of the largest multi-cryptocurrency exchanges and pay in cryptocurrency.
OKEx Cryptocurrency Exchange
Bank transfer, Cryptocurrency, iDEAL, PayPal, POLi, SEPA, Faster Payments (FPS)
USD, CNY, EUR, ARS, AUD, BGN, BRL, CAD, CHF, COP & 20+ more

270
cryptocurrencies

Promo: Earn US$10 in BTC when you refer a friend and they purchase $100 of cryptocurrency. T&Cs apply.
Listing over 100 cryptocurrencies, OKEx offers its users a variety of payment methods and coins to choose from.
Coinbase Digital Currency Exchange
Bank transfer (ACH), Credit card, Debit card, PayPal, Bank transfer (SEPA)
USD, EUR, GBP, CAD, MXN, HRK, CZK, DKK, CLP, BGN & 10+ more

73
cryptocurrencies

Buy and sell major cryptocurrencies on one of the world's most renowned cryptocurrency exchanges.
Gemini Cryptocurrency Exchange
Bank transfer (ACH)
USD, AUD, CAD, EUR, GBP, SGD, HKD

46
cryptocurrencies

Trade bitcoin, Ethereum and more at a US-based exchange where payments can be made in USD.
Huobi Cryptocurrency Exchange
AdvCash, Cryptocurrency, SWIFT, Wire transfer
GBP, USD, AUD, EUR, INR, BRL, KHR, CAD,CNY, NZD & 15+ more

228
cryptocurrencies

Huobi is a digital currency exchange that allows its users to trade more than 190 cryptocurrency pairs.
Bithumb Cryptocurrency Exchange
Cryptocurrency
KRW

191
cryptocurrencies

A global platform where users can make KRW and cryptocurrency deposits to purchase up to 15 popular cryptocurrencies.
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