Cover Product Spotlight: Compound Finance
A spotlight article on Compound Finance with its features, financials, & security record.
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Balancer cover policy is available in our marketplace. Learn more about Balancer.
Balancer community members can now enjoy additional protection for their digital assets by taking out test parametric cover through Neptune Mutual. This collaboration will allow users to purchase cover policies that safeguard their investments against smart contract risks and related exploits.
Neptune Mutual Co-founder, Edward Ryall, expressed his excitement about this collaboration, emphasizing the importance of security and risk management in the DeFi space.
As users increasingly seek protection against unforeseen events that could affect their investments, this collaboration aims to provide the Balancer community with peace of mind and a more secure trading experience.
This partnership marks an exciting milestone in the DeFi space as decentralized insurance becomes increasingly important for safeguarding digital assets. By working together, Balancer and Neptune Mutual can provide comprehensive protection for the Balancer community.
Balancer cover policies are now available as part of the Prime dApps cover creator category, which consists of a diversified cover pool shared among various DeFi applications.
With Balancer cover policies, users have the flexibility to customize their coverage based on their specific needs. They can choose the duration and amount of cover they require, ensuring that their digital assets are protected against smart contract risks and related exploits.
In addition to purchasing cover policies, users can also participate in the cover pool as liquidity providers, earning lending income. Additionally, users can contribute to the incident reporting process, which facilitates prompt and efficient claims payouts in stablecoin following incident resolution.
If you want to get started with Balancer cover policies, visit https://arbitrum.neptunemutual.net/covers/prime/products/balancer-v2 to learn more.
Balancer is an Ethereum-based, community-driven automated market maker (AMM), decentralized exchange, and liquidity protocol that was launched in 2018. The platform enables users to trade their ERC-20 assets without the need for a centralized authority or intermediary, providing a permissionless experience. As a liquidity protocol, Balancer facilitates crowdsourced liquidity from investors' portfolios to enable trading.
One of the standout features of Balancer is its structure of pools that can contain more than two tokens, typically eight, allowing traders to swap between them. These pools can be compared to index funds, giving users access to broader exposure to various tokens. As traders make swaps, the pools are continuously rebalanced using swap fees collected from the traders. This automatic rebalancing feature is the reason for the name "Balancer."
Liquidity providers who contribute their tokens to these pools earn a portion of the swap fees, as well as additional rewards in the form of the Balancer protocol's native governance token, $BAL. This incentivizes users to contribute their tokens to the pools and participate in the liquidity provision process.
Balancer provides a decentralized, permissionless trading experience, with the ability to trade between multiple tokens in a pool. Users can also earn a share of trading fees and governance tokens by providing liquidity to these pools.
What sets Balancer apart from other protocols in the DeFi ecosystem is its unique approach to liquidity. While Balancer is not the first protocol to use liquidity pools for seamless token swaps, it offers several distinct advantages.
One of the most notable features of Balancer is its auto-adjust function. Whenever a trade is initiated, the protocol rebalances the pool to maintain the proportional value of each asset, ensuring that the pool remains balanced at all times.
Additionally, Balancer pools can hold up to eight swappable assets per market, as opposed to traditional DeFi liquidity pools, which typically only hold a pair of assets. This allows liquidity providers to earn more swap fees while their portfolios are continuously rebalanced, while traders benefit from having access to a highly liquid, decentralized exchange with lower fees.
By offering more trading options and lower fees, Balancer has become one of the leading names in AMMs in the DeFi space today.
According to Crunchbase, Balancer Labs has participated in three funding rounds, raising over $32 million.
Balancer Labs, the team behind the Balancer protocol, has successfully raised over $32 million in funding through three rounds of financing, according to data from Crunchbase. The funding rounds were participated in by top investors in the crypto industry, which speaks to the high level of interest and confidence in Balancer's vision and technology.
In terms of market performance, the Balancer protocol has shown impressive resilience in the current bearish market. As of 31/03/2023, Balancer's market capitalization stands at approximately $334,500,000 according to CoinMarketCap.
The $BAL token plays a crucial role in the Balancer ecosystem by incentivizing liquidity providers and promoting decentralization. Out of the 100 million tokens created, 25 million were reserved for the development team and core investors, while 5 million were allocated for strategic partners. Another 5 million $BAL tokens have been set aside to support Balancer’s operation and growth at future fundraisings.
$BAL tokens can be traded on various cryptocurrency exchanges, including Binance, Huobi Global, KuCoin, Uphold, and more. The token's price has experienced some volatility due to the bearish market conditions, but it has shown resilience and continues to perform well as the market opens up. At the time of writing, according to CoinMarketCap, $BAL's current price is $6.21.
Visit balancer.fi to see Balancer’s total liquidity in real-time.
The security of a DeFi protocol is of paramount importance, and Balancer has taken several measures to ensure the safety of its users' funds. The protocol has undergone three full security audits by some of the leading names in blockchain project auditing, including Certora and OpenZeppelin, which have helped to identify and address potential vulnerabilities. Balancer's team also conducts regular security checks and implements fixes and upgrades as needed to maintain the integrity of the platform. As a result, Balancer has earned a reputation as a secure and reliable DeFi platform for traders and liquidity providers alike.
Learn more about Balancer’s security and audits.
Users can connect and interact with Balancer protocol developers and fellow community members on the following social channels:
Twitter | Discord | Medium | Youtube | Github | Linkedin