Balancer CEO: What's the buzz about "fluidmining"

原文标题：《 「流动性挖矿」大火，看看这个热点的制造者 Balancer CEO 怎么说》

The original author: NBSP; Kyle 

For those of you who have followed DeFi in recent weeks, you've heard about Balancer, an automated asset management platform for programmable liquidity.

For those unfamiliar, Balancer allows anyone to create a public (Shared) or private pool of liquidity for up to eight assets, with custom proportional weights and swap fees.

In the past week, Balancer started its Liquidity Mining plan in reference to the BAL newly issued governance token. Balancer has seen a surge in liquidity, volume and unique LP since its debut.

In this article, we spent some time talking with Fernando Martinelli, CEO of Balancer Labs, about:

Why flow mining?

The BAL mine & NBSP;

BAL governance & have spent

Uniswap Vs Balancer 

Understand the Balancer pool

The target user

Channeling liquidity

Since there are too many contents involved, this article will directly enter the questions and answers of this interview.

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Balancer: Mobile mining is all the rage. What is the thought process behind the design?

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Martinelli: With liquidity mining, we want to achieve two goals: decentralization and liquidity incentives.

With BAL scrip, our primary goal is to distribute ownership of the agreement to a point where it is dispersed enough to spread out the company currently developing the agreement (Balancer Labs). We believe that the best way to distribute ownership is to give it to the people who work.

On the other hand, without liquidity, the agreement will not function properly. To make Balancer efficient, you need a lot of fluidness to ease the slip point. The chicken and egg problem can be solved by using fluid mining.

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What do you think of this trend in mobile mining? Or create an optimized pool to collect as much BAL as possible?

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There is a very subjective line between so-called mines and actually contributing to the agreement. This is one of the main examples where the community is responsible for setting up the line once BAL is distributed.

We use a feed factor that rewards those with lower interchange fees with a higher BAL allocation. While 50/50 weights provide the most efficient liquidity, someone using Balancer can set the weight to 98/2 at most. We have seen some pools set this weight at a negligible transaction cost for BAL mining without fear of permanent loss.

To solve this problem, the community has been thinking about how to use the so-called Rational Factor to improve the liquidity mining formula. By associating more slip points with a smaller BAL allocation, the Factor essentially penalizes an unbalanced pool.

We expect the formula to change significantly, and have even been talking about increasing the size of important pools of capital such as ETH, DAI and USDC to encourage injections of capital to those that need the most liquidity.

We have even considered reducing the BAL reward to zero for currency pairs such as sETH or DAI/cDAI because of the obvious peg in which they exist, but such a small pool is not meaningful to the trader. In other words, for liquidity to work, there must be a need to trade, and some currencies, by definition, have no need to trade at all. The whole process naturally develops as people try and take advantage of it, and communities work through the issues on a case-by-case basis.

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In what ways do you expect BAL to be used for governance?

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Once the BAL contract is deployed in June, we expect to vote on the allocation equation improvements immediately. This will also include the assets listed on our front end. There is a lot of subjectivity about which tokens are "scams," so ultimately it is up to the community to decide what to accept.

In terms of fundraising, we envision voting on the partnerships that should be established in the Series A round.

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By the way, what about your previous seed wheel? Is it through tokens or equity? Or a combination of the two?

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Our seed round is a combination of tokens and equity. All shareholders are entitled to a prorated share of the 25m tokens that belong to Balancer Labs. Balancer Labs will disappear completely, assuming BAL assignments complete as expected.

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There was a lot of discussion about Uniswap and Balancer. What do you think of this comparison?

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Balancer was not trying to compete with Or take market share from Uniswap. I loved Hayden so much that I even had a constructive conversation with Him before Uniswap launched and Balancer Labs started.

In my opinion, we are optimizing for different things. Uniswap liquidity wants to be as efficient as possible, and they provide a great tool for other projects to use with Oracle in the newly released V2.

In Balancer, our goal was to become a build block. To do this, things need to be flexible and customizable. Our private liquidity pool is highly customizable. You can create what we call a smart pool by writing any logic in the smart contract that controls the private pool.

We're happy to show something like RealT's smart pool -- essentially a real estate index fund built on all of its scrip properties -- where the smart pool, ERC20, represents ownership of the entire index.

We could even go a step further and envision smart pool tokens as Maker's collateral, enabling anyone to provide liquidity between different parts!

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What do I need to know as a Balancer liquidity provider?

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Balancer is a generalization of Uniswap. This means that the Balancer pool can have the same configuration (50/50 weight, 0.3% fee) as the Uniswap pool. The difference is that in Balancer, you can control any exposure to a particular token. The more unbalanced the weights, the less traders need to swap and cause the price of your pool to move.

For example, if you want to obtain transaction fees but are passionate about MKR, set the 75/25 MKR/pool to provide liquidity. In this way, if MKR outsells the WETH as we have seen today, you can still get a certain amount of transaction costs and at the same time reduce less temporary losses.

I will soon publish a blog post, dynamic Balancer liquidity pool and pool with high interchange fees how to essentially allow you to act as a swing traders: in short, in the pool is high fees make it fetches high prices at cheap price and the price is little change in the inactive state (hold)!

However, I think the most underrated aspect of AMM (automated market making) relative to traditional order books is that with AMM you can increase liquidity without any worries. That in itself is a cool reason to motivate users to provide Balancer with liquidity.

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Who is Balancer's target audience?

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Balancer targets liquidity providers, people who want to take advantage of rising transaction costs and benefit from the self-balancing nature of the Balancer pool. We are not focused on providing the best UI/UX for trading because traders can get better portfolio liquidity through trade aggregators such as 1Inch. The DEX aspect of Balancer is not our core focus.

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One of the really cool aspects of Balancer is the concept of a liquid bootstrapper (LBP). Can you summarize what this is?

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Balancer, in essence, allows new projects to sell their scrip, while creating a very flexible place for scrip holders to trade. LBP is itself an intelligent pool, allowing weights to vary over time. Anyone can "stamp" smart pool contracts to update weights and profit from arbitrage. For more details, read the article about LPB.

In the next few weeks, we will also launch token factories for smart pools, providing templates for people to channel liquidity in a unique way.

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What else should people pay attention to?

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We're really excited to launch smart pools like the RealT Real Estate Index Fund. We've seen other great and innovative projects built on Balancer (such as PieDAO), and are happy to see that trend continue.

Finally, we are a small team, but we are ambitious. We are currently recruiting solarium developers and full-time engineers. If you are interested in applying, please join us and contact us!

By the end of this interview, it was clear that Fernando and the Balancer Labs team were making waves this summer.

At the time of writing, Liquidity Mining is generating strong demand for this new automated asset management agreement, with $30m of accumulated Liquidity.

Finally, the SAFG model seems to be working as expected, with liquidity providers eager to use governance tokens despite the lack of economic value.

Link to this article:https://www.8btc.com

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