DeFi: How to use Balancer on imToken
Before participating in liquidity mining, let us understand Balancer and learn how to use via imToken on mobile and desktop
Before getting into how to use Balancer, let’s briefly take a look at what Balancer actually is.
What is Balancer?
Balancer is an automatic market-making protocol that mainly provides two types of services:
- Decentralized exchange for token trading
- Liquidity pool platform for asset management
Compared to similar products like Uniswap, the liquidity pool platform provided by Balancer is more flexible:
- Supports up to 8 currencies in one pool
- Each pool can be independently set up with arbitrary weights
- The creator of the liquidity pool can set the transaction fee rate (0.0001%-10%).
At the same time, Balancer has issued the governance token BAL for Incentives for liquidity providers and ecological contributors.
Learn more at:
How to exchange currency in Balancer
- Search on the “Browse” page of imToken and open the Balancer DApp.
- Select the token to trade, and click “Unlock” to authorize the currency to be traded.
Take the exchange of DAI for USDC as an example.authorizing DAI
Then, click “Swap” to confirm the transaction and wait for the transaction to succeed.
How to participate in liquidity mining in Balancer
As liquidity mining involves taking some advanced steps, we also show you how to connect your imToken wallet to Balancer on laptop/desktop via WalletConnect’s QR code. We recommend this method for convenience.
Open the imToken application and Balancer web page (https://pools.balancer.exchange/),
Click “Connect Wallet” on the Balancer webpage and click the WalletConnect icon, and then use imToken to scan the QR code on the screen.
Open imToken and the Balancer webpage
Then go to imToken to scan the QR code to authorize the DApp to connect
Select the liquidity pool you want to join. You can search for preferred liquidity pools at http://www.predictions.exchange/balancer/ to check whether the liquidity mining benefits meet your expectations.
Select the corresponding pool to see the basic information about the pool.
As an example, we select 50% DAI, 50% USDC liquidity pool
Basic information of the pool
Click “Add Liquidity” to enter the liquidity pool details page.
Turn on the corresponding currency switch under “Unlock” to authorize tokens.
Complete the token authorization for DAI and USDC respectively
Enter the number of tokens to be deposited, click “Add Liquidity” and confirm.
After the transaction is successful, you can see your share and your proportion of the liquidity pool on the details page. At this point, you will receive BPT tokens in your wallet.
Note: BPT token is a proof of equity issued by Balancer to liquidity providers. Different pools have different BPT (same name but different in nature).
After completing the above operations, you can receive the BAL token rewards issued by Balancer every week and get the corresponding liquidity pool transaction fee share.
If you need to exit the liquidity pool later, just select “Remove Liquidity” and follow the prompts.
Be careful
- During operation, we suggest you to use of the best miners fee imToken provided by default, in order to avoid long waiting times;
- Due to the recent higher Ethereum network gas fees, make sure that the fees stay in an acceptable range. It might not be worth participating if you lose a big amount on gas fees;
- Liquidity mining has impermanent losses that increase with volatility (price movements). Learn more here
Learn more about
- Balancer official website: https://balancer.finance/whitepaper
- Official community:https://discord.com/invite/ARJWaeF
Risk Warning: None of the content in this article constitutes any form of investment advice or recommendation. imToken does not make any guarantees or promises for the third-party services and products mentioned in this article, nor does it assume any responsibility. Digital asset investment has risks. Please carefully evaluate these investment risks and make your own decision after consulting with relevant professionals.
