What is BAL
Balancer is a decentralized automated market-making (AMM) platform — facilitating the swapping of one cryptocurrency (ERC-20 tokens) for another. It’s built on the Ethereum blockchain and acts as decentralized exchange (DEX). Essentially, Balancer is like a currency exchange, similar to a Bureau de Change where you’d swap your cash for foreign currency before going on holiday. Except Balancer doesn’t require a middleman, so individuals who provide the liquidity for cash swaps to happen earn the fees, and not a centralized third-party like a Bureau de Change. Balancer platform users can provide liquidity to one of Balancer’s many liquidity pools to earn “swap fees” — the fee that’s incurred when someone wants to trade one crypto for another. One thing that makes Balancer’s platform unique is its technology which aims to balance the liquidity of all cryptocurrencies in each pool. Hence the name “Balancer”. Basically, this tech aims to stabilize liquidity between crypto trading pairs.