Why Balancer Stands Out
Balancer is not just an AMM — it’s a composable liquidity layer. Unlike fixed-weight pools, Balancer enables multi-token pools with flexible weights (e.g., 80/20 or multi-asset baskets). This flexibility empowers portfolio managers, automated strategies, and institutional liquidity providers to optimize capital efficiency.
How Balancer Works
Liquidity providers deposit tokens into pools. Smart contracts maintain weight ratios by automatically rebalancing when prices shift. Traders swap via those pools and pay fees that are distributed to LPs. Integrations with Layer-2s and cross-chain bridges reduce gas impact and broaden asset accessibility.
FAQ
Is Balancer custodial?No — Balancer is fully non-custodial. Funds remain in smart contracts controlled by on-chain rules and your wallet signatures.
How do I earn fees?Provide liquidity to pools; fees from swaps accrue to LPs proportionally. Many pools also offer BAL incentives or partner rewards.