What is a balancer token?

Like many modern DeFi applications, Balancer features its own native utility token, known as the Balancer token (BAL). This is used for participating in the governance of the Balancer Protocol and can be earned by providing liquidity or trading on the platform. How Does Balancer Work?

What is the Bal token and how does it work?

The main function of the BAL token is to attract liquidity to the platform, as Balancer users don’t only earn a transaction percentage of each asset they place in the pool, but also BAL tokens on top of that. This is similar to how the COMP token works, in order to incentivise users to stake their assets in Compound.

What are balancer pools and how do they work?

These are where BAL s, the service’s major tokens are stored; this is where all funds used in trading activities are obtained from. Other than that, it ensures the easy flow of trades and other proceedings, ensuring fluidity for all traders. There are two major subdivisions of Balancer pools regulated by smart contracts, namely:

What is balancer (balancer)?

In the earlier years of Balancer’s launch, about 100 million BAL tokens (Balancer’s utility token) were minted. The protocol released 75% of them to miners and distributed 25% among its developers and shareholders. In the process, it sold out 5 million tokens to the public. Balancer allows users to trade at optimal prices.