What is Balancer DEX?

Think of Balancer DEX as the DeFi form of a self-balancing crypto list support. Not at all like conventional DEXs that depend on a 50/50 token combine, Balancer lets you make custom liquidity pools with up to 8 tokens in changing weights.

Want 80% ETH and 20% DAI in a pool? You got it. Favor a 33/33/33 part between three tokens? Go for it. This adaptability makes it idealize for portfolio administration and productive liquidity provisioning.

How Does Balancer DEX Work?

At its center, Balancer is a robotized advertise producer (AMM) — fair like Uniswap. But it goes past the basics.

Balancer employments multi-token pools that consequently rebalance themselves when costs alter. So if ETH pumps and you’re in a pool with ETH and DAI, the pool will offer a few ETH and purchase more DAI to keep the extents intaglio — fair like a robe-advisor.

This energetic rebalancing keeps your portfolio on track and permits arbitrage dealers to benefit whereas making a difference pools remain adjusted. Everyone wins.