Balancer DeFi Protocol Attracts Seven-Figure Sum Through Token Sale

Balancer Labs, the company behind the development of the Balancer decentralized exchange, attracted investments from Pantera Capital and Alameda Research through a direct BAL token sale. The amount raised, which will go toward developing the protocol’s second version, was not disclosed.

We’re excited to announce that @PanteraCapital and @SBF_Alameda have invested in Balancer. Thrilled to partner with @joeykrug, Sam, and their amazing teams! 🚀 https://t.co/1d0VNWlyaW

— Balancer Labs (@BalancerLabs) November 9, 2020

In an interview with The Block, Alameda Research and FTX CEO Sam Bankman-Fried said that the investment amount in Balancer was seven figures.

“There is a huge gap between DeFi projects that merely offer markets and those that are implementing innovations. Balancer belongs to the second category. Its team not only creates opportunities for trading and providing liquidity, but also seeks to broaden the reach of decentralised finance,” Bankman-Fried explained his decision to invest.

It is expected that Balancer v2 will allow users to significantly reduce transaction costs and improve the experience of interacting with the protocol. Developers can look forward to easier integration with DEXs.

Balancer operates as an automated market maker (AMM), as do competitors Uniswap and Curve.

According to Dune Analytics, Balancer’s trading volume in October stood at $348 million, versus $1.13 billion in September. Trading volume on decentralized exchanges overall in the past month fell 26% from the September peak of $25.8 billion to $19.35 billion. The leader in the segment remains Uniswap, accounting for 51.4% of trades ($11.2 billion).

Source: Dune Analytics.

Over the last seven weeks, Balancer’s share of the total DEX trading volume stood at 2.47%. At its mid-August peak, it reached 16.12%.

Source: Dune Analytics.

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

In June, unknown hackers conducted two successful attacks on the Balancer pool.

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