Update on 2023-03-15
Token Symbol: BAL3L
Balancer (BAL) is an automated market maker, decentralized exchange and liquidity pool protocol built on Ethereum that allows users to provide liquidity for multiple assets simultaneously.Improving on the idea of liquidity pools pioneered by Uniswap and Bancor, Balancer allows for custom ratios of assets for each pool. Each pool can set its own customized trading fee, which rewards liquidity providers who bear the risk of impermanent loss due to fluctuations in value of the assets they hold in the pool. Balancer's BAL token acts as a governance token to help the project set features such as issuance rewards and whitelisted pools for liquidity mining.
BAL3L is a leveraged token that goes long on BAL with 3x leverage, which means that for every increase in the price of BAL in the market, the leveraged BAL token seeks a 3x increase in its price. BAL3L is required to maintain its target leverage and does so through dynamic rebalancing to gain a net value increase by 3% when the price of BAL goes up by 1%.
Due to such rebalancing and investment costs, BAL3L may suffer a net value loss when the market fluctuates. Please note, AscendEX’s leveraged tokens are not suitable for long-term investment. Investors must be cautious while investing in leveraged tokens and manage their investment risks in a timely manner.
Leveraged tokens differ from regular tokens for spot trading in that there is higher risk and volatility, which could bring about great returns or losses in a single day. Please learn more about leveraged tokens in our help center before making an investment.