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DeFi Ethereum

What the BAL token is used for

How the BAL token works. Balancer is an automated market maker where users can provide liquidity with two or multiple tokens, and with any ratio between them.

BAL token is used for


  • Governance of Balancer

Off-chain voting with BAL tokens is done here. And discussed in the forums.

What is Balancer


Balancer is an automated market maker where users can provide liquidity with two or multiple tokens, and with any ratio between them.

How Balancer Protocol works


In Uniswap pools are always 50/50 between token pairs. In Balancer the pools can have any ratio.

A user submits a trade between two tokens. Balancer uses something called Smart Order Router to:

  • Check the all the available pools for the two tokens.
  • Find best gas price, and least slippage depending on order size.
  • Perform the exchange.

Balancer can also be viewed as an automated index fund for a user providing liquidity.

Liquidity providers earn

  • Trading fees.
  • Exit fees when a user removes their liquidity.

More here.

BAL token issuance


The total minted supply of BAL: 35,435,000.

  • 25M – Team, stock options, advisors and investors
  • 5M – Ecosystem fund.
  • 5M –  Fundraising fund
  • 0.435M – Liquidity providers over 3 weeks.

Max potential supply: 65M

How much will be minted is to be decided through governance.

Current supply

Docs


Docs

Paper

Competition


BAL price


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