Balancer® DeFi — Guide to Balancer DEX, Wallets & Pools

An animated, interactive guide covering how Balancer works, pool types, compatible wallets, fees, and safety best practices.

Updated • Oct 28, 2025

What is Balancer?

Balancer is a programmable automated market maker (AMM) and on‑chain portfolio manager that lets anyone create or join liquidity pools with custom token weights and fee structures. It powers flexible liquidity for traders and sophisticated strategies for liquidity providers.

Multi-token pools
Pools can hold many tokens with arbitrary weights.
Smart pools
Configurable logic — dynamic fees, rebalancers and more.
Low slippage
Large, efficient pools reduce price impact on swaps.
Yield & composability
Earn fees + token incentives; integrate with vaults or strategies.

Popular pool types

PoolWeightsFeeUse case
Stable (2‑token)50/500.01%Low slippage USD pairs
Weighted (Multi)Custom (e.g. 80/20)0.20%Index-like exposure
Meta & SmartDynamicVariableAutomated strategies
Wallets & integrations
MetaMask, Coinbase Wallet, Ledger, WalletConnect
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For trading and supplying liquidity use a browser wallet like MetaMask or WalletConnect for mobile. For large balances, connect a Ledger hardware wallet and confirm every transaction on-device.

Security best practices
Audits, approvals, and risk management
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  • Verify official Balancer domains and contracts.
  • Review token approvals; use minimal allowances when possible.
  • Enable hardware wallet signing for high-value transactions.
  • Understand impermanent loss before supplying liquidity.

FAQ

Q: How are swap fees distributed?
A: Fees are paid to liquidity providers pro rata. Balancer can also apply protocol-level fees depending on governance proposals.

Q: Can I create a pool with 3+ tokens?
A: Yes — multi-token pools are a core Balancer feature and useful for index-like exposures.