Hello and welcome to this blog post about Balancer BAL White Paper. I am very excited to know that you are interested in this amazing technology, you will be going to amazed by the incredible potential of the blockchain.
There is a lot to learn about this futuristic tech, lets get started to dive into the Balancer BAL white paper and start to leverage it to build a more secure and trusted ecosystem for Industry 4.0 applications.
The aim of this blog post is to help you quickly understand about the philosophy behind the Balancer (BAL).
I can ensue you that, you will be able to understand every bits and pieces related to Balancer (BAL) after going through the Balancer BAL white paper.
Without wasting any further time lets get started to dive right in and lets understand white paper first.
What is white paper?
A white paper is an informational, influential, well-structured document, usually published by an organization, to provide in-depth information about a specific solution.
A white paper is used to provide a good insight into the challenges for a specific problem and a proposed solution for the same.
Balancer BAL White Paper
Balancer BAL white paper will be going to provide you, all the information that is needed to get started with Balancer (BAL), including the inspiration for creating, the problem it is trying to solve and the solution proposed by Balancer (BAL).
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“ A Balancer Pool is an automated market maker with certain key properties that cause it to function as a self-balancing weighted portfolio and price sensor.
Balancer turns the concept of an index fund on its head: instead of paying fees to portfolio managers to rebalance your portfolio, you collect fees from traders, who rebalance your portfolio by following arbitrage opportunities.
Balancer is based on a particular N-dimensional surface which defines a cost function for the exchange of any pair of tokens held in a Balancer Pool. This approach was first described by V. Buterin, generalized by Alan Lu, and proven viable for market making by the popular Uniswap dapp.
We independently arrived at the same surface definition by starting with the requirement that any trade must maintain a constant proportion of value in each asset of the portfolio. We applied an invariant-based modeling approach described by Zargham et al to construct this solution. We will prove that these constant-value market makers have this property.”
White Paper Link: Balancer BAL White Paper
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