Plain English
Balancer is a DEX known for weighted multi-asset pools — instead of 50/50 LP positions, you can create pools of up to 8 tokens with custom weights (80/20, 60/30/10, etc.). Powers many liquid-staking pools (wstETH/ETH stable pools) and tokenized index funds.
How it actually works
V2 supports weighted pools, stable pools (for like-priced assets), and boosted pools (LP capital earns lending yield while still providing AMM liquidity). BAL is the governance token; veBAL holders direct emissions and earn 65% of protocol fees. Major user: Aura Finance, which aggregates veBAL voting.
What it means for you
Balancer is most relevant for LPs needing complex pool structures — particularly LST/LRT pools and indexed exposures. For pure trading, Uniswap and Curve are usually tighter on common pairs. veBAL/AURA mechanics offer real-yield exposure to anyone willing to lock for the long term.
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Educational content only. Not investment, tax, or legal advice.