DeFi on TokenPocket | Introducing the Balancer

Image for post
Image for post

Author: TokenPocket team
Translator: Jade

What’s Balancer

Balancer is an n-dimensional AMM (automated market-maker) built on Ethereum. It allows anyone to create or add liquidity to customizable pools and earn trading fees. Instead of the traditional constant product AMM model, Balancer’s formula is a generalization that allows any number of tokens in any weights or trading fees, which is believed to have brought great advantage to Balancer.

Another way to view Balancer is as an inverse ETF (Exchange Traded Fund): instead of paying fees to portfolio managers to rebalance your portfolio, you collect fees from traders, who continuously rebalance your portfolio by following arbitrage opportunities.

Based on Constant Product Algorithm, Automated market makers requires high liquidity to achieve low slippage trading for users, which is regarded as a natural shortcoming comparing to the Order Book mechanism.

How to Use Balancer in TokenPocket

Search [Banlancer] on the Discover page or find it in the [DeFi] list. The Balancer has a simple interface yet strong functionality, which is a good thing for newbies.

Select the token and amount you want to sell and buy (We use ETH and BAL here respectively for demonstration). By tapping on the exchange rate (1ETH=26.2114BAL), you can see the Balancer Pools used to optimize your order.

Image for post
Image for post

Notes: that Ethereum is a bit congested recently and requires a higher Gas fee to verify the transaction.

Image for post
Image for post

You can see the full available tokens by tapping the default token logo in [Token to sell] and [Token to Buy] button.

Start your journey of discovery

  1. Download TokenPocket from App Store or Google Play
  2. Go to [Discover] and search for [DApps]

Follow TokenPocket

Twitter
Telegram
Website

Written by

A leading multi-blockchain wallet based on #EOS #BTC #ETH #TRON #IOST, and etc. Play dapps, trading coins and financing in https://www.tokenpocket.pro

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