BAL is the governance token of the Balancer decentralized exchange thats allows liquidity pools with multiple tokens, custom allocations and fees. Smart pools in Balancer can be used for programmable liquidity, this solution is currently being implemented for Aave’s Safety Module. Balancer’s Dex currently holds $800m of TVL.
BAL Smart contract Risk: B-
Since its launch in June BAL has reached half a million transactions driven by liquidity mining distribution program which may lead to inflation. The smart contract has been well battle tested, audited twice and has a good test coverage.
BAL Counterparty Risk: B
Balancer is a permissionless Dex with a large community of BAL holders that vote on proposals. Furthermore anyone can create a custom Balancer Pool.
BAL Market Risk: C +
The BAL token has experience less volatility than the rest of the DeFi market since its inception but remains quite volatile. The token is traded on the top centralised exchanges with good volume.
Risk Parameters
LTV 55%
Liquidation Threshold 60%
Liquidation Bonus 10%
Reserve Factor 20%
Variable Interest Rate Model ~ Collaterals
UOptimal 45%
R_0 0%
R_s1 7%
R_s2 300%