Balancer Labs, which is developing a decentralized exchange of the same name, has attracted $5 million in investments from Three Arrows Capital and DeFiance Capital through the direct sale of honey tokens, as stated in the company’s Tweet.
In November 2020, Balancer raised a seven-figure sum from Pantera Capital and Alameda Research. As for now, the investment in Balancer during the Series A funding round has reached $12 million, which will go to develop the second version of the protocol.
Balancer v2 is designed to significantly reduce transaction costs and improve the user interface, as well as significantly simplify integration with DEX.
Balancer operates on the Automated Market Maker (AMM) model, similar to its competitors Uniswap and Curve. According to Messari analysts, these projects cover more than 90% of the market for decentralized exchanges.
In October, Balancer joined the Open DeFi association, which includes leading decentralized financial organizations such as Aave, Balancer, BlockScience, dYdX, Ocean Ventures, and others.
“As DeFi rapidly approaches becoming simply finance, the global shift towards a decentralized financial system opens up more opportunities for the Balancer protocol than ever,” the company’s official publication states.