Balancer DeFi protocol raises $5 million in token sale

Balancer Labs, the company behind the Balancer decentralized exchange, attracted investments of $5 million from Three Arrows Capital and DeFiance Capital through a direct sale of BAL tokens.

We’re excited to announce that Three Arrows Capital and @DeFianceCapital have purchased $5M of $BAL ahead of Balancer V2.

They join the $12M Series A alongside @PanteraCapital and @AlamedaResearch 💪

Here’s what @zhusu and @Arthur_0x had to say 🔽https://t.co/KhtEJA6Ap2 pic.twitter.com/l8xkuodnUi

— Balancer Labs (@BalancerLabs) February 10, 2021

In November the company attracted a seven-figure sum from Pantera Capital and Alameda Research. At the time of writing, the amount invested in Balancer during the Series A round had reached $12 million, which will go toward developing the second version of the protocol.

Balancer v2 is expected to significantly reduce transaction costs and improve the user interface. Developers can look forward to easier integration with the DEX.

Balancer operates on the automated market maker (AMM) model, just as its rivals Uniswap and Curve. Messari analysts had previously noted that these projects account for more than 90% of the market of decentralized exchanges.

In October Balancer became one of eight new members of the Open DeFi association.

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