Compound, which rides the wind and waves, is surpassed by Balancer. Who is the strongest king of DeFi?
Editor's Note: This article comes fromBlue Fox Notes (ID: lanhubiji), reprinted by Odaily with authorization.
Editor's Note: This article comes from
, reprinted by Odaily with authorization.Balancer: a generalized Uniswap》。
Blue Fox Notes paid attention to Balancer last month. It is equivalent to the general version of Uniswap. The main difference between it and Uniswap is that it has a governance token Coin BAL.
Balancer: a generalized Uniswap
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Balancer surpasses Compound to become the DeFi project with the highest market capitalization
As of the writing of Blue Fox Notes, the price of BAL has reached 19.8 US dollars, the total number of BAL is 100 million, 35,435,000 have been issued, and the number of holders has reached 2,043. Considering that the early mining users are close to more than 1,000 bits, then in After BAL went public, more than 1,000 users were purchased. Considering the small user scale of DeFi, this shows that it has a certain user base.
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The price of the BAL seed round is $0.6, so, according to the seed round, its price has increased by 33 times. Based on the issued volume, the market value of Balancer has exceeded 700 million US dollars, while the current market value of Compound is 599 million US dollars. In other words, at this point in time, Balancer surpassed Compound to become the project with the highest market value in the DeFi field. Of course, considering the depth, this is more of a numbers game.
In addition, DeFi is a long-term game. Temporary transcendence is nothing. There are enough users and business support, a moat, and an ecology to last.
However, this also represents a contrast between DEXs and lending. How the market values lending and DEX will be an interesting topic in the future. Judging from the current market reaction, the valuation of DEX projects in the future may be higher than that of decentralized lending projects.
In addition, derivatives will also join the battle. From the perspective of Blue Fox Notes, DEX, lending and derivatives will be the three core value capturers in the DeFi field.
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The real market circulation of BAL
From the token circulation graph above, we can see that the total amount of issued tokens is 35,435,000 BAL. Not all tokens have made it to the market, though. 435,000 BAL has been distributed to early liquidity providers and has entered the market circulation.
Among the 35,000,000 BAL, 5,000,000 is used as an ecological fund to attract strategic partners to develop the ecology. The use of this part of funds will be decided by BAL holders through governance in the future, and this part of BAL has not yet flowed into the market. 5,000,000 is used as a financing fund, and this part is used for future financing of the project to support the operation of Balancer Lab. This part has not flowed to the market.
Then, according to the above token distribution, the current real market circulation of BAL is 6,060,000, and its current market value is about 119 million US dollars.
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Among its overall tokens, 65% will be allocated to liquidity providers, the main purpose is to achieve sufficient decentralization of its tokens. According to the current plan, of the 65,000,000 BAL, about 7,500,000 BAL will be distributed every year, and it will take about 8.6 years to complete the distribution. Since the follow-up is governed by BAL, the distribution plan may be changed according to the wishes of the governor.Balancer: a generalized Uniswapsecondary title
Fundamentals of Balancer
Balancer: a generalized Uniswap
", it can be seen that Balancer is a generalized Uniswap, which can realize decentralized token transactions without custody. It can also help users automatically rebalance assets, and it is also a good asset management tool.
At the beginning of June three weeks ago, BAL launched the mining plan of the liquidity provider, and its liquidity saw its first major climb, as shown in the figure below. The second big climb was today, up 41.6%, with more gains expected in the coming days. In terms of liquidity, Balancer has basically been on par with Uniswap, and Uniswap's current liquidity is more than 63 million US dollars.
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(Balancer's locked assets, Source: defipulse)
