Balancer is an automated market maker (AMM) protocol and a decentralized exchange (DEX) on Ethereum and other EVM-compatible blockchains. It is one of the leading protocols in the DeFi section and offers many various services for crypto investors. The DEX was founded in 2018 by Fernando Martinelli and Mike McDonald.
Similar to how most other AMMs work, Balancer enables users to trade directly with each other via liquidity pools and rewards liquidity providers with a portion of the trading fees. The special thing about Balancer is that it has seven different types of liquidity pools and may allow up to fifty different tokens in one single pool.
The seven types of liquidity pools in Balancer are:
- Weighted Pool
- Stable Pool
- MetaStable Pool
- Liquidity Bootstrapping Pool
- Managed Pool
- Boosted Pool
- Custom Pool
BAL serves as the utility and governance token of the AMM. The total supply of BAL is 96,150,704 and the circulating supply is 44,707,457.65.
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