Here you are, wondering what Balancer is, and why Balancer, right?! Don’t worry! $SAPA has got you! Before explaining the steps to contribute to the Balancer pool, Here is a brief explanation of what Balancer Automated Market Maker is.
UNDERSTANDING THE BALANCER PROTOCOL
Built on the Ethereum network, Balancer is an automated market maker that rebalances assets automatically within pools. It makes it possible for users to create liquidity pools with two to eight different tokens.
Each time a user adds or removes Liquidity from a particular pool by conducting trades, the pool ratio changes, causing the price of each asset to also change.
Visit here for more info about Balancer Protocol.
WHY WE CHOOSE BALANCER?
As we have explained, Balancer automatically rebalances assets that are within pools. Once we pair $SAPA with the chosen tokens (BTC, ETH, UNI, and USDC) in the pool, we would be able to benefit from any positive movement from market sentiments because each upward movement in these “BIG BOYS”, creates a BUY pressure for $SAPA. Additionally, using the balancer protocol place us on the same par with an index fund or investment fund. Basically SAPA pool on balancer give us exposure to the pool’s underlying assets.
THE TOKENS IN THE POOL
BTC, ETH, UNI, and USDC, are the Balancer Liquidity Tokens chosen.
STEPS TO CONTRIBUTING TO THE POOL
Using any of the underlying assets, you can contribute to the pool by following these steps:
- Go to Balancer’s pool page link here: https://app.balancer.fi/#/pool/0x5b70d96d95e138aaa228dc6dfde48502a5329a4a000100000000000000000292
- Connect your wallet
2. You will be required to set up a proxy contract if you are adding Liquidity to Balancer pool for the first time. Select ‘Invest’.
3. The next thing to do is to select the token you are investing with.
4. Select the token to deposit to the pool with, preview and approve the transaction in your wallet.
5. Once you successfully follow these steps, you become a Balancer Liquidity Provider to the chosen pool. You can go back to the balancer homepage to view your position.