The below Balancer price chart tracks the price of Balancer against AUD over time. The rate shown is indicative only as actual buy / sell rates depend on market liquidity and fees at the time of quotation.
✓Automated portfolio manager
Balancer is an automated portfolio manager and trading platform. Firstly, users deposit assets to a Balancer pool, which is a portfolio of up to eight crypto assets with designated weightings. Then as certain assets appreciate and the portfolio needs to be rebalanced, assets are lent to traders who take advantage of arbitrage opportunities. In return, users receive a fee. Those fees are paid with the protocol’s native token BAL, which is also used for governance.
In essence, instead of paying fees to portfolio managers to rebalance a portfolio like in traditional finance, users collect fees from traders who rebalance their portfolio by exploiting arbitrage opportunities. Balancer initially began as a research project at the software consulting firm BlockScience in 2018, founded by Fernando Martinelli and Mike McDonald.
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