Review on Balancer by erdi yılmaz
About Balancer
Balancer, an Ethereum-based project, is not only an automated market maker, but also a decentralized exchange and liquidity pool protocol. Thanks to Balancer, users have the opportunity to provide liquidity for more than one asset at the same time. The BAL token helps the project identify features such as rewards and whitelisted pools for liquidity mining.
Automated Market Makers (AMMs) allow easy delivery of transactions that can be automated in the standard financial market. AMMs are automated brokers controlled by algorithms that define rules for trading.
Smart contract platforms have leveled up AMMs. These platforms have brought together algorithms that determine the storage of assets traded by AMMs and how to trade those assets. This is exactly what the Balancer platform does. Balancer takes care to offer this service to its users without any problems.
The platform gives portfolio owners the opportunity to create Balancer Pools and for investors to trade in these pools. In addition, Pools receive transaction fees from investors for providing liquidity to the Balancer Protocol. Pools are defined as automatic market makers, as they have the capacity to trade between two tokens in a pool.
Balancer Token, one of the DeFi tokens, saw an increase of 235% on June 23. As the interest shown in the DeFi market is increasing day by day, Balancer attracted the attention of investors.
Its use of Automated Market Makers also made the project seen by investors as a promising project.
Also, the BAL token has been listed on Binance and this has been appreciated by investors.
Pros
- After its release, its value has increased considerably
- Transactions can be done easily thanks to Automatic Market Builders
- The project helps generate profits with pool mining
- Listing on Binance has increased its value and gained a place in the market
Cons
- Withdrawals are not fast enough
- Fees are way more than they should be
