Balancer
Balancer V2
Balancer V2
  • Protocol Overview
  • Developer Docs
  • Products
    • The Vault
      • Flash Loans
    • Balancer Pools
      • Weighted Pools
      • Composable Stable Pools
      • Liquidity Bootstrapping Pools (LBPs)
      • Managed Pools
        • Asset Managers
      • Boosted Pools
      • Custom Pools
    • Smart Order Router
    • Balancer CoW Protocol
    • Oracles (deprecated)
  • Concepts
    • Math
      • Weighted Math
      • Stable Math
    • Fees
  • Ecosystem
    • Governance
      • Governance Process
        • RFC/Proposal Forum Post Template
      • BAL Governance Token
      • Snapshot
      • Multisig
        • Other DAO Multisigs
      • Governable Protocol Fees
      • Emergency subDAO
    • Community
      • Ballers
      • Delegation
      • Grants
    • veBAL and Gauges
      • veBAL
        • How veBAL Works
        • How To Use veBAL
        • How veBAL Boosting Works
          • Working Supply
          • Calculating My Boost
          • Minimum veBAL for Max Boost
        • BIP19 and Yield Bearing Tokens
      • Gauges
        • How Gauges Work
        • How To Use Gauges
  • Security
    • Audits
    • Bug Bounties
    • Emergency Pause
    • Token Compatibility
    • Balancer x Certora Accelerator
  • Getting Started
    • FAQs
      • Swapping
      • Liquidity
      • Liquidity Mining with the veBAL and Gauge System
      • Liquidity Mining (Legacy)
      • Fees
      • Governance
      • The Vault
      • Pools and LBPs
      • Asset Managers
      • Oracles
      • About Balancer Protocol and Labs
      • V2 in a Nutshell
      • V1 ➝ V2 Migration
    • Walkthroughs
      • Trade
      • Invest
    • Contribution Guide
  • Community
    • Discord
    • Forums
    • Medium
    • Dune Analytics
  • Developers (Deprecated)
    • !!! DEPRECATED !!! ⛔
    • Guides
      • Pool Verification
    • Smart Order Router V2
    • GitHub
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On this page
  • What is Balancer?
  • Revolutionary DeFi Liquidity Pools
  • Serving Everyone

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Protocol Overview

What is Balancer?

Balancer is a decentralized protocol that provides DeFi liquidity infrastructure.

Balancer’s mission is to accelerate innovation in DeFi by providing access to secure infrastructure for liquidity applications. Projects build on Balancer to create new, innovative types of pools and financial dApps.

Balancer Pools contain two or more tokens that traders can swap between. Liquidity Providers put their tokens in the pools in order to collect swap fees.

Balancer adopts powerful features to slash gas costs, super-charge capital efficiency, unlock arbitrage with zero-token starting capital, and open the door to custom AMMs.

Revolutionary DeFi Liquidity Pools

Pools with high token counts are conceptually similar to Index Funds in traditional finance. They allow users to have access to broad exposure to a variety of tokens. Where Balancer differs from the traditional notion of an index fund, however, is in the fees.

Instead of paying fees to have a broker rebalance the pool, the pools collect fees as they're continuously rebalanced by traders making swaps. Furthermore, high token-count pools have the advantage of having many token pairs, creating additional opportunities to collect trading fees.

Balancer's WeightedPools are based on an N-dimensional invariant surface, a generalization of the constant product formula described by Vitalik Buterin.

Serving Everyone

With this mechanism, the needs of both Liquidity Providers and Traders are served:

  • Liquidity Providers collect trading fees, while their portfolio is continuously rebalanced

  • Traders gain access to an open, decentralized exchange that never closes, allowing them to swap what and when they like for low fees

NextThe Vault

Last updated 2 years ago

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