What makes Balancer (BAL) crypto a unique protocol?

Highlights

• Founded by Fernando Martinelli and Mike McDonald, the Balancer crypto is primarily an automated market maker (AMM), decentralised exchange and liquidity protocol that can be used to swap ERC-20 assets
• Operating on the Ethereum blockchain, HECO and DAI, Balancer crypto acts as a permissionless platform
• According to CoinMarketCap, the GALA token is trading at US$16.60 with a trading volume of US$108,831,920 over a day

Founded by Fernando Martinelli and Mike McDonald, the Balancer crypto is primarily an automated market maker (AMM), decentralised exchange and liquidity protocol that can be used to swap ERC-20 assets. Operating on the Ethereum blockchain, HECO and DAI, the Balancer crypto acts as a permissionless platform.

It is claimed that users can enable trading through Balancer crypto by pooling crowdsourced liquidity from investor portfolios. Developed by BlockScience, the Balancer crypto is governed by its native token BAL, which participates in the protocol and can be earned by providing liquidity or trading on the platform.

The BAL token on March 31 was witnessing a gain of over seven per cent, as of writing, and a volume surge of over 120 per cent. The BAL token has gained around 44.4 per cent in the last 14 days, according to CoinGecko.

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Balancer operates just like any other DEX such as Uniswap (UNI) or Curve (CRV), but at the same time, it also offers additional features of bundling up to eight tokens into the pools. 

What's unique about Balancer crypto? 

The Balancer pool is said to come with an auto-adjust feature, which allows for a “self-balancing weighted” pool, considering price variations. Besides, Balancer is one of the few protocols that can add multiple tokens to its platform without the need for ETH.

Another feature is that Balancer doesn't depend on order books while settling the trade and instead focuses on the concept of balancer pools. So, whenever any trade is initiated, the pool gets rebalanced, tokens are deducted from the pool and ratios of the assets are rebalanced to ensure that each asset's proportional value is maintained. 

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What Makes Balancer (BAL) Crypto A Unique Protocol?

How is Balancer faring?

According to CoinMarketCap, the Balancer token is trading at US$16.60 with a trading volume of US$108,831,920 over a day. Ranked 393 as per CoinMarketCap, the token witnessed gains of 8.11 per cent in the last 24 hours with a live market cap of US $115,249,079 and 6,943,831 BAL coins in circulation. 

Bottom line 

The Balancer crypto seems climbing of late but it's also essential to keep in mind that the cryptos are volatile assets and subject to market risks. Therefore, one must tread very carefully in the area and do copious market research. 

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