Description
Balancer is a decentralized automated market maker (AMM) protocol for programmable liquidity, supporting various swap curves and pool types. Governance begins with a Request for Comment on the Balancer forum, progresses to a formal proposal, and is voted on via Snapshot. Voting power comes from holding BAL tokens or delegated voting power, with a quorum of 2 million veBAL needed. BAL tokenomics include a 100 million token cap and the vote-escrowed BAL system, encouraging long-term holding. Balancer has raised $32.3 million across three funding rounds, with the latest on May 27, 2021.
Value Proposition
Balancer is a decentralized automated market maker protocol that represents a flexible building block for programmable liquidity. By separating the AMM curve logic and math from the core swapping functionality, Balancer becomes an extensible AMM that can incorporate any number of swap curves and pool types.
Governance
The process typically begins with a Request for Comment (RFC) posted on the Balancer forum. Once the RFC gains traction and is sufficiently refined, it is transformed into a formal proposal. This formal proposal is then put to a vote on Snapshot. Voting power in this system is derived from holding BAL tokens in a wallet, holding pool tokens for a Balancer Pool containing BAL, or receiving delegated voting power from another wallet. For a proposal to be valid, it must reach a quorum of 2 million veBAL
Tokenomics
The total supply of BAL is capped at 100 million tokens. A significant evolution in Balancer's tokenomics came with the introduction of the vote-escrowed BAL. Users can lock their BAL tokens (specifically, BAL/ETH 80/20 pool tokens) for up to one year to receive veBAL. This mechanism encourages long-term holding and aligns token holders' interests with the protocol's success.
Previous Funding
Balancer has raised a total of $32.3M in funding over 3 rounds. Their latest funding was raised on May 27, 2021
