Don’t invest unless you’re prepared to lose all the money you invest. This is a high‑risk investment and you should not expect to be protected if something goes wrong.
Buy Balancer (BAL): Balancer is a decentralised finance (DeFi) protocol running on the . Its primary goal is to incentivise a distributed network of computers to operate a decentralised exchange where users can buy and sell any cryptocurrency. Think of as a unique type of index fund within the crypto world.
Balancer pools are at the heart of the Balancer protocol. These pools are created by users who bundle together various cryptocurrencies from their portfolios.
Each Balancer pool can contain up to eight different tokens. The value of a pool is determined by the percentages of each token within it.
For example, a Balancer pool might start with 25% Ethereum (ETH), 25% DAI, and 50% Aave (LEND).
Balancer uses smart contracts to ensure that each pool maintains the correct proportion of assets, even as individual token prices fluctuate.
If the price of a specific token increases significantly (e.g., LEND doubles in value), the pool automatically reduces its holding of that token to maintain the original weight distribution.
Liquidity providers (those who deposit assets into the pool) continue to earn fees during this rebalancing process.
There’s good news for users that provide liquidity to a Balancer pool. They earn part of the trading fees that are paid by traders who use their funds.
These liquidity providers are rewarded with a custom cryptocurrency called BAL.
By depositing assets into Balancer pools, they contribute essential liquidity to the network, enabling smooth trading for other users.
Why do investors buy BAL?
Investors buy BAL tokens to participate in liquidity mining. By staking their assets in Balancer pools, they earn BAL tokens as rewards.
Liquidity mining incentivises users to provide liquidity, which is crucial for the efficient functioning of decentralised exchanges.
BAL holders have governance rights within the Balancer ecosystem.
They can vote on proposals related to protocol upgrades, fee structures, and other important decisions.
This democratic governance model allows the community to shape the future of Balancer.
Like any other cryptocurrency, some investors buy BAL tokens speculatively, hoping that their value will appreciate over time.
As Balancer gains popularity and adoption, demand for BAL may increase.
Balancer’s innovative approach to liquidity provision and self-balancing pools sets it apart from other decentralised exchanges like Uniswap and Curve. As the DeFi space continues to evolve, Balancer remains an essential player, attracting both liquidity providers and investors seeking exposure to this dynamic ecosystem.
Sign up to CoinJar: Download the CoinJar app on your iOS or Android device. Create an account and verify your ID. This process usually takes just a few minutes. UK residents are required (in accordance with local legislation) to complete an appropriateness assessment to show they understand the risks associated with what crypto/investment they are about to buy and enabling CoinJar to categorize them as an investor.
New customers are also required under local regulations to wait 24-hours as a “cooling off” period (from account creation), before their account is active (i.e. to deposit, trade, withdraw etc.).
Deposit funds: Transfer funds from your bank account to CoinJar.
Able to buy crypto: Once your funds are in your CoinJar account, you’re ready to buy crypto. Choose BAL or any of the other 50 supported cryptocurrencies. You can use cash or a credit card to make your purchase.
Balancer is an Ethereum-based Automated Market Maker (AMM) protocol that serves as both a decentralised exchange (DEx) and a self-balancing portfolio management tool.
It allows traders to provide liquidity for their ERC-20 tokens and offers a unique approach to managing portfolios within the crypto space.
Private pools in Balancer allow creators to customise parameters such as token ratios, trading fees, and deposit addresses. These pools are not open to everyone.
Smart pools are private pools managed by smart contracts. They can automatically rebalance token weights, track indices, and adjust fees based on market conditions.
An AMM is a decentralised trading protocol that enables users to trade cryptocurrencies without relying on traditional order books. Balancer functions as an AMM.
BAL is Balancer’s native governance token. Holders of the native token BAL have voting rights and can propose changes to the network parameters and protocol.
Fernando Martinelli and Mike McDonald co-founded Balancer Labs. Martinelli is a serial entrepreneur, while McDonald is a software engineer. They lead the development and growth of the Balancer protocol.
Balancer (BAL) was initially launched as an R&D product of the firm BlockScience in 2018. It was an engineering and research firm, before it split off into Balancer Labs.
LPs who contribute liquidity to Balancer pools earn fees from swaps made by traders. They also receive Balancer Pool Tokens (BPT), representing their share of pool fees, and BAL tokens for governance participation.
Balancer functions as a self-balancing weighted portfolio. When users initiate swaps, the AMM rebalances token prices to maintain their original weights in the pool.
It allows LPs to create shared pools, which anyone can add liquidity to, or private pools with customisable parameters.
Liquidity pools are collections of tokens deposited by LPs. Balancer pools provide liquidity for trading pairs and other assets.
Balancer allows up to eight assets per pool, unlike competitors like Uniswap and SushiSwap, which only allow two tokens per pool.
LPs can create portfolio-like pools that track indices or group assets based on their preferences.
Balancer is currently deployed on Polygon, Ethereum and Arbitrum. The team has also received grants to develop deployment on Near and Algorand.
Cryptoassets traded on CoinJar UK Limited are largely unregulated in the UK, and you are unable to access the Financial Service Compensation Scheme or the Financial Ombudsman Service. We use third party banking, safekeeping and payment providers, and the failure of any of these providers could also lead to a loss of your assets. We recommend you obtain financial advice before making a decision to use your credit card to purchase cryptoassets or to invest in cryptoassets. Capital Gains Tax may be payable on profits. CoinJar’s digital currency exchange services are operated in the UK by CoinJar UK Limited (company number 8905988), registered by the Financial Conduct Authority as a Cryptoasset Exchange Provider and Custodian Wallet Provider in the United Kingdom under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, as amended (Firm Reference No. 928767).
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