Balancer DAO Research
Last updated
Last updated
INTRODUCTION
This research is centered on Balancer.fi - Since Balancer rose to prominence, the DeFi ecosystem witnessed a revolutionary introduction of the concept of multi-token pools. In the paragraphs below, we’ll learn about the DAO tools used by Balancer and how these tools are used in their governance process. Equally, we’ll discuss about the Balancer DAO utility token and how individuals can get the token.
Balancer is one of the novel and groundbreaking DeFi applications that acts as a token swap platform, a liquidity mining source, and an efficient liquidity protocol for integration into other DeFi protocols. Balancer runs on Ethereum (ETH), Polygon (MATIC), Arbitrum, Fantom (FTM) as well as Optimism.
With Balancer protocol, users can seamlessly set a custom trading fee and also provide liquidity for up to eight assets in a single liquidity pool — Cool!
The Balancer DAO governance proposal submission has two distinct items: An English Proposal and a Multisig payload for executing any chances described on-chain.
Here are the steps towards Balancer DAO governance
Step 1. The Balancer DAO governance process starts in the ; users will write an English language description of the purpose of the proposal and the details of the changes to be made. veBAL holders, also called Balancer Governors, vote on proposals relevant to the protocol.
Step 2. Moving forward, Balancer Governors can now participate in discussions on the Balancer forum as you promote your topic — you can also seek delegates to obtain their support. Sought for people who would resonate with your proposal and have them gather their thoughts in a forum post.
Step 3. Develop and validate transaction Pull Request: On Balancer, a Pull Request (PR) is a transaction that is posted to a gnosis-safe multisig which executes the changes specified by the BIP on-chain. It is required as part of the body of a Proposal, before it can be brought to a valid snapshot.
The whole governance process looks a little bit daunting but, if you don’t want to get involved in the technical side of things, like defining your execution, the Maxis are a service provider and they are funded and managed by the DAO on a rolling basis.
They are the ones managing the multisig. You can contact them for any help — they can be found on the and also .
In the situation where a Snapshot is approved by governance and perhaps rejected for technical reasons, the Maxis can help to fix the payload whilst facilitating a revote to approve.
Step 4. This is the fourth step towards a successful governance proposal — The Snapshot process will commence once an address amasses at least 200,000 veBAL in delegation posts a snapshot to the forum — keep in mind that the snapshot must meet all the required specifications
More so, the voting runs for 96 hours starting on a Thursday (GMT) with a quorum of 2 million veBAL. Even if your snapshot wins a majority of the votes but does not meet all of the above requirements, it will be regarded as invalid — Please, take your time when posting Snapshots.
Step 5. Results and Execution: Any vote that fails in an approve/reject vote will not be executed by Balancer governors; when a vote succeeds or has been chosen, be on the lookout to be sure it is executed properly.
To approve the off-chain votes carried on Snapshot, the Balancer Protocol leverages a Multisig to enact these changes on-chain. Multisig signers are a group of respected community members. Just so you know, they do NOT have decision-making power, their sole purpose is to simply enact on-chain the decisions BAL holders make via an off-chain voting system.
Snapshot is an open-source DAO tool that fascilitates decision-making processes within decentralized organizations. Snapshot is an off-chain gasless multi-governance client with easy-to-verify and hard-to-contest results. Balancer uses Snapshot to vote for their proposal.
Following that, the (BAL) token is a paramount asset for the Balancer protocol, Balancer DAO is governed by the Balancer (BAL) token holders. Community members can earn the BAL token through liquidity mining by depositing cryptos into Balancer’s liquidity pools. It can also be purchased via DEX exhanges such as Binance.
Onboarding is very easy, to get started, simply , and verify that you’re human — you’re in!