How does Balancer work?

Balancer uses self-managing asset pools composed of different cryptocurrencies. The pool’s value is based on the share weight of each token within it. The pool share of each asset is self-regulated by smart contracts according to values set at the moment of creation of the pool. If the value of one of the tokens in the pool radically increases, the pool adjusts its proportion to other tokens in the pool in order to regulate the overall pool value. Balancer’s smart contracts then make that token available to traders looking to buy it as prices go up.

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