Review on Balancer by Inioluwa Okedeji
Balancer: A Decentralized Cryptocurrency Platform That Creates Market and Increase Liquidity With The Use Of The AMM Algorithm.
Balancer is cryptocurrency project built on the ethereum network. It is a protocol for programmable liquidity, that is, there are algorithmic features on this platform that can help users gain liquidity. The Balancer project is also one among the many Defi tools available on the ethereum network for purpose of market creation.
Balancer is decentralized cryptocurrency platform that also allows users hold specific digital currencies which in turn gives them the opportunity of participating in the projects decision making process.
This platform features an algorithm known as AMM (Automated Market Maker) that helps to create and manage liquidity in the cryptocurrency market. This is one of the unique features that distinguish this platform from others.
Balancer platform allows users the opportunity to create and add liquidity to pools that can be customized while also allowing them to earn trading fees. Also, ERC20 tokens can easily be swapped on the platform without deposits or order management.
The one distinguishing feature of this project is its aim and ability to create market and liquidity which is pretty much what everyone is looking for in the cryptocurrency space, that is liquidity. Although, this project is still in its developing stages, this particular feature is bound to make it a successful project.
Pros
- There's the opportunity to create and also earn from investing in liquidity pools.
- Fast and easy swapping of ERC20 tokens is very much supported on the platform.
- It is a decentralized cryptocurrency project that is void of centralized control, thereby giving the community access to partake in important decision making process of the project.
- The user interface is quite simple and very easy to use.
Cons
- In this area, I cannot point out any flaw yet, probably due to the fact that it is still in its developing stages.
