Last update: May 11, 2022

Balancer Review

If you’re looking for a crypto trading platform that can make you money without constant management, Balancer exchange could be the right fit for you. As an automated market maker (AMM), Balancer gives you a unique opportunity: make money with far less work on your end. In addition, by employing a joint liquidity pool, Balancer removes the need for mediators or governing bodies, giving end-users increased control.

The decentralized exchange (DEX) is built on the Ethereum blockchain and provides an open, accessible alternative to its centralized counterparts. In particular, the decentralized finance allows users to trade Ether and ERC-20 digital assets in a trustless, permissionless blockchain.

  • Balancer


    1. Operating Since 2020
    2. Cryptocurrencies Supported 20+ cryptocurrencies
    3. Fees 0% for both maker and taker
    4. Deposit Methods Connected crypto wallet
    5. Fiat Currencies Not supported
    6. Verification Methods Not required
    7. Margin Trading No
    8. Futures Trading No

What is AMM

If you’ve never worked with an AMM before, it works somewhat differently than a traditional crypto exchange. First, it uses a system of communally maintained balancer pools from which users draw liquidity. Balancer’s algorithm then chooses the best timing for these moves by relying on Smart Order Routing, maximizing your returns. Overall, this type of platform is a good option for traders who want to devote less time to their portfolio or who want to explore liquidity in their trading.

One of Balancer’s main characteristics is decentralization. Depending on your priorities, this may be a positive or a negative to you. While the decentralized nature of Balancer’s platform allows for open and accessible trading, it may cause some consumers to feel vulnerable due to a lack of oversight. Therefore, you should fully understand what you prioritize in your crypto tools before joining Balancer.

Balancer has developed a platform with a unique algorithm, which is different from other AMMs. Traditional AMMs use a constant 1:1 ratio in pools and pool creators or pool owners are restricted to two tokens in the pool. While the smart contracts in balancer pools utilize a constant mean formula enabling more than two assets to be included to the pool with ratio not limited to 1:1.

Whether you’re a trader, investor, or liquidity provider, Balancer offers many tools and services that can work for you. Keep reading to find out everything you should know about the platform in our full Balancer review. You’ll not only learn about Balancer’s platform but also how AMM platforms can elevate your future trading.

About Balancer Cryptocurrency Exchange

Balancer is an asset management platform that servers as an automated price sensor, liquidity provider, and portfolio manager. As decentralized finance (DeFi) continues to expand on its composable nature, the requirement for liquidity in different use-cases gets bigger. Founders Mike McDonald and Fernando Martinelli launched the company as Balancer Finance in 2020. Their mission was to use advanced artificial intelligence to streamline the process of crypto investment and maximize user returns. Built from the Ethereum (ETH) infrastructure, Balancer remains a leading option for trading ERC-20 tokens as well as Bitcoin, LiteCoin, and other popular crypto assets.

In 2018, the Balancer Labs developed the Balancer protocol. Balancer Labs is a prominent technological company that specializes in the development of products that are based on blockchain. Like many other new decentralized (DeFi) apps, Balancer has its own native utility token, called Balancer Token (BAL).

Balancer has rapidly established itself as one of the top decentralized exchange platforms when it comes to both locked value and trading volume, among other metrics.

The Balancer has over $2.51 billion as its locked-in value and also shares a similar feature with Uniswap. The exchange is a well-known decentralized exchange (DEX) and one of the biggest that exists in the decentralized finance (DeFi) ecosystem.

Balancer utilizes a smart contract dubbed The Vault to store and control the coins in the system’s various liquidity pools. This contract manages most of the trades and swaps on the platform and helps ensure everything runs smoothly.

The backbone of Balancer’s system consists of the artificial intelligence protocols, called AMMs, created by the company. These AMMs handle every aspect of crypto management from calculating fees to determining the ideal time for a certain transaction. Overall, Balancer is the go-to platform for users who want to leverage the power of AI on their crypto portfolios.

Balancer enables only the investors to add liquidity or control the parameters of the pool. The private protocol accepts crypto wallets like Metamask, WallConnect, and other Dapp browsers as well as crypto wallet solutions backed by balancer Smart Contracts.

Different decentralized trading platforms can leverage the protocol to ascertain the best exchange rates and prices through a Smart Order Routing (SOR).

Balancer’s systems and technology can facilitate trading in unique ways depending on the trader’s role in the crypto world. If you’re a trader, Balancer offers an intuitive platform where you can trade various currencies with affordable fees. If you’re a liquidity provider, Balancer allows you to efficiently collect trading fees and provides in-depth portfolio balancing, helping you minimize impermanent loss.

Regardless of your place in the crypto industry, Balancer offers tools and data that can optimize your process and experience.

Why do people use Balancer?

The exchange has more than 17,500 liquidity providers (LP) and more than $3.4 billion in liquidity. Not to mention these liquidity pools have made more than $70 million in collecting fees. In particular, people use Balancer since it offers vital integrations in its protocol including:

  • Accessibility to custom AMMs
  • Enabled arbitrage with zero-tokens starting capital
  • Enhanced capital efficiency
  • Reduced gas fees

Because of the exchange’s decentralized nature, Balancer is committed on serving traders and investors who wish to offer liquidity or swap their assets without the need for intermediaries.

What Problem Does Balancer (BAL) Solve?

Balancer users pay transaction fees to stakers for rebalancing your account. These transaction fees, among other functions, maintain the system stable. Moreover, Balancer users who are holding any Ethereum-based assets can stake it to earn fees or rewards. You can say that the platform enables ERC-20 token holders to earn income from their passive Ethereum-based assets.

What Balancer Can Do

Balancer believes in the future of cryptocurrency and its advantages for users. Despite being an incredibly advanced investment tool, Balancer prioritizes its users’ anonymity so it will never subject you to a Know Your Customer (KYC) or Anti-Money Laundering (AML) test. The service also offers an impressive range of features, making it easy to use Balancer to fit your investment strategy.

When you sign up for Balancer’s service, you will immediately get the best possible deal as an investor. First of all, you can utilize an automatically weighted portfolio manager. In addition, the system’s price sensor ensures you can precisely manage the timing of your trades.

Nonetheless, starting with a more straightforward platform may be a better option for users new to crypto or wanting to learn. Balancer’s system offers many customization options that go well beyond simple trading, which may overwhelm new traders. As a result, its design may benefit experienced users versus beginners.

Balancer’s ease of set-up is another major advantage of the platform. Set-up merely requires connecting your crypto wallet, something most crypto pros know how to do. As soon as you’ve connected your wallet, you can make purchases and start using the platform.

Furthermore, the platform minimizes the overhead costs of crypto trades through lower than average fees and effective incentive programs. It also requires no external market-makers to provide liquidity. In addition, Balancer helps users save money through reduced protocol fees and minimized slippage.

Overall, Balancer not only makes it easy for customers to make money but also to save money.

Trading On Balancer Platform

Trading on Balancer platform doesn’t need know your customer (KYC) verification. You can begin trading right away if you already have a crypto wallet. Take note that the exchange doesn’t support fiat transactions like Canadian Dollars (CAD), so you won’t be able to connect your account via payment methods such as wire transfer, a credit card, debit card, interac e-transfer, or your bank account. But over-the-counter (OTC) transactions could work.

What Is the Balancer Liquidity Pool?

Token pools are cryptocurrency assets grouped together and used for loans and other applications. These pools can grant a large amount of financial leverage to your trading and open opportunities not available to singular traders. While utilizing pools can seem intimidating to newer users, it is a highly profitable endeavor when executed properly.

The Balancer Liquidity Pool can hold up to 11 million dollars in assets and effectively negate the ripple effects of your sale or purchase. Most crypto investors don’t have access to this type of financial leverage. For that reason, a service like Balancer can help you effectively compete with higher-resource investors.

Balancer also allows for the use of private and shared pools. Private pools are only available to higher-capital traders, equipping them with a set amount of liquidity. Private pools also offer their users an extremely high level of control, making them a desirable option for more independent investors.

Alternatively, shared pools allow users and traders to access liquidity, making them a more attainable option for most users. Users in the shared pool split the burden and the rewards. As a result, users have lessened control with dramatically lowered costs.

Balancer also offers a pool creation tool called Smart Pool for more creative customers. This tool enables users to explore more niche pool types. One example of these smart pools is Liquidity Bootstrapping Pools (LBPs) that rely on a project token and a collateral token to establish liquidity over time.

Shared pools have fixed parameters. They are made open for users who want to add liquidity to them.

Besides these pools, numerous other investing options on Balancer exist. Users can find them by exploring the platform.

Dedicated Token

The recently launched $BAL token allows for use only within the Balancer ecosystem. As these tokens have no inherent value, don’t expect to be exchanging these coins for Bitcoin or another cryptocurrency. Instead, these coins help users influence the general direction of Balancer and offer them more control over their money than most other services.

There are already over 10 million $BAL coins in circulation though most belong to Balancer founders and major investors. However, getting involved in Balancer now enables users to mine and bank some of these coins. That way, users can wield more influence over the platform in the future.

You can earn $BAL tokens when you contribute liquidity to the various pools across Balancer’s infrastructure. These coins save you money over time as possessing them reduces costs inherent to using Balancer’s platform. These costs include trading and protocol fees.

Aside from $BAL, a wide range of tokens and altcoins are available for trading on Balancer Exchange. These include Bitcoin (BTC), Wrapped Bitcoin (WBTC), USD Coin (USDC), Maker (MKR), Ethereum (ETH), Augur (REP), Dai (DAI), Ren (REN), Digital Rand (DZAR), Chainlink (LINK), Synthetic Network Token (SNX), Basic Attention Token (BAT), 0x (ZRX), and Weth (WETH).

Mining Opportunities

When users participate in Balancer’s token liquidity mining, they play an essential role in the company’s management of their liquidity supply. Balancer gives governance tokens as a reward to these users. Furthermore, the platform provides higher quantities of the tokens with lower fees to liquidity providers.

Fees for Trading

Balancer provides its users with a wide variety of liquidity pools and options with no set fees (0 taker fees, 0 maker fees, and 0 withdrawal fee). The system works to find you the best available offer each time you initiate a trade. After that, it’s up to you to assess each pool’s offerings and make the best choice.

How to Deposit and Withdraw from Balancer

All you need to make a deposit to Balancer is a connected crypto wallet and payment of the required fees. If you’ve sent crypto before, you can certainly handle making a deposit to Balancer. The platform also makes it easy to view your balances across different types of assets and easily manage where you keep your money.

However, it’s important to remember that you will be responsible for the gas fees to ensure your deposit reaches its destination. You also can’t make deposits with credit cards or other payment processing services. Once the platform processes your deposit, you can take full advantage of Balancer’s advanced investment options.

Withdrawing is even more straightforward as all you need to do is select the asset you want to withdraw and move it back to your wallet or offline cold storage. There, you will have complete control over the asset. So, if you’re tired of complicated deposit and withdrawal processes, Balancer provides a hassle-free experience at a competitive price point.

Deposit Methods

The exchange doesn’t accept any deposits of fiat currency such as US Dollars (USD) and Australian Dollars (AUD). Meaning, cryptocurrency investors without any previous crypto holdings won’t be able to trade on Balancer. For you to be able to buy your first digital assets, you must have an entry-level exchange, which is a crypto exchange accepting deposits of fiat currency.

Data Security and Privacy

Balancer never stores your personal data and keeps no actual funds on its premises or servers. This feature minimizes the risk of a data breach on the platform. Moreover, even if a hacker could access the system, they would have very little to gain by doing so.

However, these precautions don’t eliminate the risk of hackers tracing user transactions. Users should still regularly monitor their accounts for suspicious fees or transactions.

Since its founding, Balancer has consistently proven its dedication to consumer security and privacy. This devotion gives the platform another advantage over the competition as more and more data breaches occur.

Balancer Pools

Smart contracts known as pools are the building elements of Balancer. Balancer pools determine how traders may exchange digital assets on the platform. The following are the many pool choices available on Balancer for different token combinations:

  • Managed Pools – designed to give maximum flexibility to manage a dynamic fund. Including weight shifting to management fees, swap pausing, and rebalance. A good example is WSBDapp.
  • Liquidity Bootstrapping Pools – very good for changing the liquidity of one token into another. For example AKITA / ETH.
  • MetaStable Pools – ideal for soft-pegged tokens with a high correlation coefficient. For instance, USDT / USDC / DAI.
  • Weighted Pools – built for wide use, including digital assets that don’t necessarily have a price connection like WETH / DAI or WBTC / DAI.

What Is Balancer V2?

Balancer V2 is the first version (V11) of the Balancer protocol that is in operation. The new features that you should look out for in the Balancer V2 are:

Separating the token management from AMM logic to enable individual pools to be customized.

Introduction of new assets managers to improve the overall efficiency of the Balancer liquidity.

Improvement in gas efficiency to lower the trading cost.

The addition of the internal BAL token to maximize the efficiency for traders and arbitrageurs who trade a lot.

Bug bounty program

As part of the Balancer V2 release of core contracts, the company is also operating a bug bounty program on an ongoing basis. The severity of vulnerability will decide the amount of the reward given under the bounty program.

In this case, the bug bounties will apply to the Balancer smart contracts responsible for security protocol funds on the Ethereum blockchain.

The BAL token, which is balancer’s native token is also listed on renowned crypto trading platforms and exchanges for secure transactions such as Crypto.com, Kraken, Bithumb, Coinbase, Coinbase Pro, BitBuy, CoinSmart, and Binance among others.

Balancer Mobile App

Balancer Exchange doesn’t have a mobile app available on Android or iOS. The exchange can only be run on the desktop client or exchange’s website.

FAQ and Terms

The following sections of this Balancer review will contextualize what distinguishes this platform from the competition. These sections will also highlight what makes Balancer such an excellent choice for your crypto investments.

First, it’s crucial to understand Balancer’s terms of service before you commit to them. Let’s break down the two most meaningful terms below.

Balancer Protocol

Balancer Protocol refers to the company’s strategy of combining various liquidity pools and networks into one extensive protocol. This structure allows for simultaneous execution and tracking of orders across all the pools.

Balancer Swap

With its advanced AMMs, Balancer Swap allows users to swap assets based on criteria entered manually by the user.

Balancer Review for Australia

Are you an Australian trader based in Sydney or any other parts of the country/continent who’s looking for an amazing Australian crypto exchange that comes with great customer support, user experience, ease of use, good products, information technology, and outstanding overall rating and user reviews? Want to get the best value for money? If yes, then Balancer is for you!

Balancer is a DEX platform. It is one of the leading automated market makers (AMM) out there in the crypto world. After being in development since 2018, the platform released in March 2020 and has rapidly risen to the forefront of the crypto space. Balancer has swiftly established itself as on of the top decentralized exchange platforms in terms of locked value and trading value, among other metrics.

The DEX is built on the Ethereum Mainnet and provides open, accessible alternative to centralized exchange platforms. In particular, the decentralized protocol allows its users to trade Ether and ERC-20 digital assets in a trustless, permission less ecosystem.

To sum it up, Balancer is a well-known DEX platform that is establishing itself as a new generation of crypto trading interfaces that does away with order books and accounts completely. Compared to their centralized counterparts, the new automated market maker (AMM) offers an open and easily accessible alternative. Just like many other AMM platforms out there, route trades through whichever liquidity pools are needed to achieve the best rate for the user, which implies swaps may be either indirect or direct in nature.

In the end, the decentralized exchange meets its goal to serve traders and investors who want to offer liquidity or swap their assets without depending on centralized intermediaries.

Balancer Review for Canada

Are you an Canadian crypto trader based in Ontario or Toronto or any other parts of the country who’s looking for an amazing crypto exchange that comes with great customer support, user experience, ease of use, good products, information technology, and outstanding overall rating and customer reviews? If yes, then Balancer is for you!

Balancer is a crypto exchange platform that was launched in March 2020 by Fernando Martinelli and Mike McDonald. The platform quickly gained popularity among crypto investors and traders, making Balancer one of the best decentralized exchange platforms in terms of locked value and trading volume. It is currently ranked #22 by trading volume among DEXs on the coin tracking platform, CoinGecko.

Though the exchange is not a Canadian exchange and not FinTrac regulated yet, it is one of the best crypto exchanges out there on which you can buy Bitcoin and other altcoins such as Cardano (ADA), Dogecoin (DOGE), Ripple (XRP), Bitcoin Cash (BCH), EOS (EOS), Litecoin (LTC), Newton (NEW), stablecoins like Tether (USDT), and many more. Moreover, the exchange’s withdrawal fees as well as deposit fees are good too for cryptocurrency trading.

To sum it up, Balancer is great exchange with low fees and great charting perfect for both beginners and seasoned crypto traders out there. Don’t forget to turn on two-factor authentication once you sign up for the platform to make sure your account is safe from hacks!

On a side note, just in case you’re looking for a certified Canadian Crypto Exchange, then NDAX is probably for you.

Have a look at our comparison of the Best Canadian Crypto Exchanges for a list of Canadian-based exchanges.

Balancer Exchange Review for UK

Balancer was launched in March 2020 by Fernando Martinelli and Mike McDonald. Balancer is an asset management platform that serves as a price sensor, liquidity provider, and automated portfolio. It comes with pools that support up to eight different tokens that can be weighted by percentage and rebalanced automatically.

Aside from that, Balancer features pools that are automatically rebalanced and can be entered using one token. Other key aspects that Balancer boasts include the ability to create a Balancer Pool with asset makeup and fees of your liking, swap fees earned from portfolio rebalances, decentralized exchange trading and arbitrage opportunities, and a native exchange that leverages smart order routing (SOR) to mitigate price slippage across different trading pairs.

Overall, the crypto space offers an abundance of cryptocurrency exchanges and trading platforms to buy, sell, and trade digital assets. It is a 2nd-layer infrastructure platform that some crypto enthusiasts describe as self-balancing crypto-ETF. Sure, Balancer might be quite new addition to the bunch. However, the company has become a market leader with its innovative multi-token pools, which are excellent options for liquidity investors and traders.

For a list of UK-based crypto exchanges, have a look at our comparison of the Best Crypto Exchanges in the UK 2022.

Closing Thoughts

Balancer offers crypto investors an effective way to improve their portfolios and generate passive income. Employing sophisticated software and technology, Balancer allows you to stay ahead of the competition and thrive in a tumultuous market. Lastly, as a decentralized platform, Balancer is an affordable option for low and high-volume traders alike.

After reading this Balancer review, you have learned the platform’s key benefits for traders of various types and experience levels. Whether you’re new to the crypto-space or an early adopter, Balancer can take your trading to the next level and increase your returns.

 

Disclaimer: smartbillions.com is owned and operated by Smart Billions and may contain advertisements, sponsored content, paid insertions, affiliate links, or other forms of monetization.

author Marco Vela

A crypto obssessed digital marketer passionate about making a difference in the world. When he's not behind the computer he can be found hiking, camping and relaxing with his dog.