Introducing Balincer

Since exploding in 2020, Decentralized Finance (or DeFi) has been gaining great attention and popularity, which can often be seen in mainstream media’s headlines. With the exponential growth, DeFi has recorded a total value locked (TVL) of $163 Billion with lending and DEX products taking up almost 90%. (via DeFi Pulse)

Lending and trading are two of the pillar businesses in the current DeFi space with the most TVL. However, they are practically isolated from each other, leading to extremely low capital efficiency. Rare lending protocols support sport or even margin trading and most DEXes don’t provide loans. Also, even though users get transferable and tradable deposit certificates after depositing in lending protocols, there are few platforms to actually facilitate the financial use of them.

Therefore, Balincer is developed to bridge the gap between lending protocols and DEXes, increasing capital efficiency in DeFi.

Welcome to Balincer

Balincer is essentially an open-source margin trading platform where you can lend, borrow and perform leveraged trading to either buy long/sell short an asset in just one place.

For lenders/borrowers, you can lend your idle crypto assets (including your deposit certificates from other lending protocols) to earn interest or use them as collateral to take out loans.

And for traders, after making a margin deposit in the margin pool, you will be able to open either long or short positions in a supported asset in Balincer with up to 5X leverage. The platform makes use of external AMMs like Uniswap to provide surplus liquidity for margin traders to open positions of any size.

Using Balincer, you can comfortably leverage your available capital for larger gains.

Market Problems

As mentioned above, according to our observation, the problems in DeFi mainly lays in the following aspects:

Rare DeFi products provide margin trading. Margin trading can effectively amplify traders’ gains. It’s popular in the traditional finance market and also has a huge demand in the DeFi space. Though there are a few protocols that offer this service, their liquidity is not enough.

Balincer’s Solution and Features

Balincer VS CEXs

The advantages of Balincer over CEXes are as follow:

Balincer VS dYdX

Similar to Balincer, dYdX is also a decentralized exchange offering margin trading. Here is a competitive analysis of the two.

Final Notes

The project is being managed by experienced experts in the field of Blockchain development. As the first AMM-Based decentralized margin trading platform, Balincer serves as a pioneer to other decentralized exchanges. Also, with the innovative features and benefits that come with using Balincer, it is sure to lead DeFi to the next level and enrich the ecosystem.

Balincer is going to launch on Ethereum mainnet soon with code is being audited by SlowMist. Join Balincer community for more updates:

Twitter:https://twitter.com/balincernetwork

Telegram: https://t.me/Balincer_Global

Medium:https://medium.com/@balincer247