Balancer, a flagship project in the decentralized finance (DeFi) arena, announced the end of its token sale this Tuesday. Unfortunately, the amount of funds raised was not disclosed.
However, The Block writes that the Balancer’s investors were the analytical company Alameda Research and the venture capital fund Pantera Capital. Alameda founder Sam Bankman-Fried wrote on social media that the investment round was closed after reaching at least $ 1 million.
It is reported that the raised capital will be used to expand Balancer’s staff and to launch a protocol update.
What is Balancer?
Balancer is an automated market-making blockchain protocol and a major competitor to the Uniswap exchange. Balancer is currently the 5th largest protocol in the decentralized finance market. Balancer trading volume was $ 350 million in October. In March 2020, Balancer raised $ 3 million in seed funding from well-known representatives of the cryptocurrency industry, including CoinFund and Inflection.
Recall that in the summer, Balancer added 200% per day and became the second largest DeFi token.
As an abbreviation, instead of “Balancer”, Latin BAL is often written. This entry is similar to currency codes.
Balancer is an Automated Market Maker (AMM) that was developed on top of the Ethereum blockchain and launched in March 2020. He was able to raise an initial $ 3 million round with the help of Placeholder and Comeplice. The balancer protocol functions as a self-balancing weighted portfolio, price gauge, and liquidity provider. It allows users to profit from the recently introduced token ($ BAL) by contributing to customizable liquidity pools.You can find bal to trx exchange on Godex.
The protocol works with several types of pools:
- Private pools give the owner the ability to manage the pool and make the individual the sole contributor of liquidity to the pool. Besides, all parameters are changed by the owner.
- Shared pools are for those looking to become liquidity providers (LPs). LPs are rewarded with Balancing Pool Tokens (BPT).
- Smart pools are similar to private pools, but are managed by a smart contract. They also reward the use of BPT and allow anyone to contribute liquidity to the pool.
What was the most underrated industry event in the past year?
It may not be the most underestimated event, but a number of experts believe that its consequences will be much more serious than we think. We are talking about the fact that one of the oldest US pension funds, MassMutual, made a large purchase of bitcoins – for $ 100 million.
What will happen next with the development of projects within the framework of decentralized financing?
A number of experts believe that the entire DeFi industry (decentralized finance – ed.) Will gain value. To the extent that major fintech companies such as PayPal, CashApp or Revolut will implement DeFi into their products. It is tempting for them because an investment in DeFi brings in up to 10%. per year with a relatively high level of security, and today no bank can provide such rates.
Which cryptocurrencies – existing or announced – deserve attention in the next 12 months?
Almost all experts are unambiguous in their conclusions – Bitcoin will remain king. Ethereum will continue to grow at a breakneck pace. And DeFi projects such as Compound, bZx, Aave, Balancer and Link will be on the radar all over Wall Street looking for new capital routes. Last year was a breakthrough in almost all areas, and in 2021 we will all see the consequences of these changes.
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