After the remarkable rise in the value of COMP token and reached record levels, another project launching Balancer coin in the same context as DeFi is entering the race.

Where announced Balancer Labs yesterday announced the launch of the Balancer Governance Protocol token, BAL, on the Ethereum mainnet.

Balancer coin up 230% in one day

In just one day of trading the new token, the price of BAL more than tripled and rose from 6.65 to roughly $22, in a clear indication of how interested DeFi users are in having a say in the development of these protocols.

The Balancer project allows users to create liquidity pools where any number of preset Ethereum tokens (ERC20) can be deposited in fixed ratios with each other, for example 25% of DAI Maker coin and 75% of BAT coin.

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When the prices of tokens in a pool change, the allocation is rebalanced to the specified ratios by allowing traders to access the overweight tokens as liquidity.

The Balancer project gives users access to a token swap function which is somewhat similar to Uniswap.

The swap fee is distributed to the liquidity providers of the group or pools that provide liquidity for a particular swap.

The protocol allows liquidity providers to hold a fixed basket of tokens, while traders receive a highly liquid token exchange with a competitive fee environment that keeps costs low.

Liquidity mining for BAL tokens started exactly a few weeks ago on June 1.

The algorithmically proportioned BAL rewards are assigned to users who provide liquidity by cashing in 145,000 tokens every week.

Since the project was officially launched on Ethereum, the price of BAL tokens has increased by more than 230%.

Balancer was launched just months ago and is fast becoming one of the most important and fastest growing DeFi protocols.

Initially the project is limited to a few pools, and with future upgrades to the protocol it will allow any user to create their own pools from scratch using the original Balancer Pools interface.

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Balancer was added yesterday to DeFiMarketCap, where DeFi tokens such as BAL and COMP are ranked based on the total market capitalization of the total supply of their governance tokens, with COMP predictably taking first place after their recent price hike.

The recent boom also helped push the total market cap on DeFi to over $7 billion, after it topped $2 billion just two weeks ago.

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