Balancer Protocol
Published in

Balancer Protocol

WallStreetBets Launches Exchange Traded Portfolios (ETPs) on Balancer V2

WSBDApp, the blockchain-based trading platform connected to the iconic WallStreetBets grassroots movement, today announced the launch of exchange-traded portfolios (ETPs) on Balancer V2. These decentralized portfolios align with both companies’ deep-seated belief in the retail investor and aim to scale decentralized finance (DeFi) by hedging against inflation with a community-selected basket of fiat-linked crypto stablecoins, tokenized commodities, and crypto native assets.

With portfolio compilation determined, voted upon, and rebalanced by the WSBDApp community, WSB’s initiative hopes to further expand the possibilities of DeFi and increase crypto exposure to crypto-native and traditional investors alike. As innovation pushes forward in DeFi, an adoption gap widens for traditional financial investors. ETPs allow retail investors to diversify their portfolios with tokens such as WBTC, WETH, wDGLD, USDC, EURS, and NZDS to hedge against fiat currency inflation while also gaining high potential crypto exposure.

“We are excited about WSBDApp’s launch of ETPs on Balancer V2 which aim to bridge the gap between traditional and DeFi investing. WallStreetBets shares our mission of scaling accessibility to DeFi, and we are thrilled to welcome them into our ecosystem.”

Like an ETF or index fund, WSBDApp’s ETPs on Balancer create a carefully selected portfolio of tokens that are fully liquid, balanced to avoid inflation, and non-custodial. As part of the collaboration, WSBDApp users will connect wallets to their Balancer Protocol portfolios and use the proper currency to buy-in and receive a token representing their holdings. Balancer V2 rebalances the portfolio providing a user-friendly and dynamic control.

Balancer V2’s operations significantly reduce gas and processing fees, and users will receive frequent updates about the status of their ETPs. Once the funds are held, users get access to any upside of the collection and can sell back their shares when ready.

“The WallStreetBets community has something for everyone, and with democratic tools like ETPs, we’re showing the world how financial markets should really be managed,” said BTCVIX, CEO of the WSBDApp. “Balancer is providing our community the data they need to access and evaluate these portfolios, enabling really educated financial decisions.”

How Does Balancer Protocol Do It?

Balancer V2 allows for the development of pools of tokens, similar to an index fund’s “baskets,” that can be purchased together. By investing in a pool that can hold up to 8 different assets, a user will receive a token representing all of your holdings, your stake in the pool.

Automatic Rebalancing

Due to the pool’s architecture, Balancer V2 also makes rebalancing easy, giving more control to the users. It does so by not only re-weighting but changing the pool’s composition, buying and selling digital assets as needed.

Low Gas Fees

On top of that, Balancer Pools lower gas fees (fees incurred to cover the computing energy used to process a transaction). This is possible because instead of buying on an exchange as funds usually do, it goes through a Balancer Pool, making trading more efficient and a lot cheaper.

Circuit Breakers

Fear of losing funds is a problem that has kept many retail investors from AMMs, but not any more. On Balancer V2, Investment Pools protect a bad token from draining all value in a pool. This addition is particularly useful as it appeals to retail investors who otherwise would be concerned to invest in the highly volatile world of cryptocurrency.

About Balancer

Balancer is an automated portfolio manager and liquidity provider turning the concept of an index fund on its head: instead of paying fees to portfolio managers, you collect fees from traders who rebalance your portfolio by following arbitrage opportunities. Developers leverage Balancer as a permissionless building block to innovate freely and create new treasury management systems. This opens up possibilities for dynamic fees and allows for liquidity bootstrapping pools (LBPs) which are excellent for launching a new token and so much more. Balancer Lab’s mission is to become the primary source of DeFi liquidity by providing the most flexible and powerful platform for asset management and decentralized exchange.

To learn more, please visit https://balancer.fi/

About WallStreetBets

Founded in 2012, WallStreetBets is a movement that aims to empower the “little guy” investors of the world against unaccountable financial institutions. The movement lacks formal leadership and is instead a grassroots decentralized effort to leverage the power of community organizing for bringing accountability and transparency.

To learn more, please visit https://www.wsbdapp.com/

--

--

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