In light of the recent announcement of Balancer V2, we’re proud to announce a partnership with Aave to build the first Balancer V2 Asset Manager — allowing idle assets in V2 pools to earn yield on Aave.

Image for post
Image for post
Balancer + Aave, a match made in heaven!

On Balancer V2, all tokens are held in a single Protocol Vault. Any pool can however use their deposited tokens in the vault through an Asset Manager, putting capital to work when it is not being used as swap liquidity. This is explained in detail below.

As the de facto DeFi lending protocol, Aave brings a diverse portfolio of supported tokens, including BAL…


Image for post
Image for post

Balancer Labs is happy to announce that Three Arrows Capital and DeFiance Capital have made a combined investment of $5M in the Balancer protocol, joining recent investors Pantera Capital and Alameda Research via a direct purchase of BAL tokens from the Balancer Labs treasury.

This brings the size of the current rolling Series A round to $12M.

In addition to welcoming two deeply knowledgeable teams as long-term participants in the Balancer ecosystem, this new funding will further accelerate the growth of the Balancer Labs team and its ability to serve the Balancer community as it prepares to launch Balancer v2.


Balancer v1 exceeded our expectations by evolving liquidity provisions and attracting a robust, engaged community. Today, we’re proud to share Balancer V2, an upgrade which will bring us closer to Balancer’s vision of being the primary source for DeFi liquidity.

The core tenets of Balancer V2 are security, flexibility, capital efficiency and gas efficiency. These highlights include:

  • Protocol Vault for all Balancer pool assets
  • Improved gas efficiency
  • Permissionless, customizable AMM logic
  • Capital efficiency through Asset Managers
  • Low gas cost and resilient oracles
  • Community-governed protocol fees

Protocol Vault

The main architectural change between Balancer V1 and Balancer V2 is the transition to a…


Our long term vision is for Balancer protocol to be a leading DeFi building block, eventually holding billions of dollars worth of assets. Since our launch, we have been humbled by the increase in usage of Balancer and believe we are on the right path to achieve this goal.

The sudden surge in users and liquidity we had last week left us playing catch up on scaling the platform, having played a major role in the outages of both TheGraph and Coingecko’s api. …


The Balancer team has been heads down working to make this happen: we are thrilled to announce that the Balancer protocol governance token (BAL) is live on main-net.

We did a lot of research for an off-the-shelf, secure solution to deploy a governance token that had all the features we desired for BAL. Unfortunately we did not find any and decided to launch a minimalist token that will be used within a customized on-chain governance system that we are currently working on. More information on this soon.

BAL for first 3 weeks of liquidity mining

The liquidity mining distribution started about 3 weeks ago on June 1st 2020


If you had a chance to read Balancer's whitepaper it may have been daunting to follow all the maths involved. Fortunately, most of the complicated partial derivatives and proofs are not necessary for understanding and using the protocol. A simple invariant, which we call the Value Function, ensures all the interesting self-balancing properties that Balancer pools have:

Image for post
Image for post

where Bi and wi are the token balances and weights respectively.

Value of Balancer pools

A Balancer pool can be comprised of up to 8 different ERC20 tokens, each with their own arbitrary weights. The weights represent the percentage of value that the pool should be holding…


Balancer pools are essentially self-balancing index funds that are continuously rebalanced. This rebalancing happens through arbitrageurs who are incentivized to trade with pools, and by doing that they sync the pool prices with those on the external market.

Instead of investors in conventional index funds paying fees for managers to actively rebalance the funds, Balancer pools accrue fees for liquidity providers. Every time someone trades with a Balancer pool, a small fee is charged. …


The proposal of distributing Balancer Governance Tokens (BALs) to liquidity providers on Balancer has received very positive feedback across the board. Some interesting questions have been discussed on our discord channel, and one common desire by the community has become clear: before liquidity mining starts, a tool for the creation of custom pools was necessary. This would ensure no one would be left out.

Pool Creation Tool

Even though Balancer Labs had already made available a step by step tutorial on how to create a balancer pool using etherscan.io, we admit that only tech-savvy users would be able to get through it. …


TL;DR: Balancer Labs proposes community owned governance tokens (BAL): liquidity mining schedule, mechanics, and motivation.

Since inception, our goal at Balancer Labs has been to decentralize and diversify governance of the Balancer Protocol. We have looked into several approaches and designs, and have landed on an approach we are proud to share: the Balancer Protocol Governance Token (BAL).

We believe alignment between token holders and protocol stakeholders is crucial for successful decentralized governance. More explicitly, we believe BAL tokens are the vehicle to drive alignment and participation in the protocol. …


TL;DR: Balancer Labs proposes community owned Balancer Protocol Governance Tokens (BAL): liquidity mining schedule, mechanics, and motivation.

Since inception, our goal at Balancer Labs has been to decentralize and diversify governance of the Balancer Protocol. We have looked into several approaches and designs, and have landed on an approach we are proud to share: the Balancer Protocol Governance Token (BAL).

We believe alignment between token holders and protocol stakeholders is crucial for successful decentralized governance. More explicitly, we believe BAL tokens are the vehicle to drive alignment and participation in the protocol. …

Fernando Martinelli

CEO and Cofounder at Balancer Labs

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store