Balancer Labs Partners with Key Investors in $24.25M Token Purchases

New Round of Funding Aims to Accelerate Growth of Balancer Protocol

Fernando Martinelli
3 min readMay 27, 2021

We are thrilled to announce that Balancer Labs has further partnered with some of the most respected investors in the cryptocurrency space who have shown their support of Balancer Protocol by extending $24.25M of capital to Balancer Labs.

This new round of investors joins the likes of Alameda Capital and Pantera Capital, among others, to purchase BAL tokens directly from the Balancer Labs treasury. Along with the $3M Balancer Labs raised in March of 2020, we have significantly increased the runway to ensure our primary mission of Balancer Protocol becoming the leading source of liquidity in DeFi is realized.

Balancer Labs has the mandate to do what is in the best interest of the Balancer Protocol. Along with our community, we believe Balancer Protocol will become the leading source of liquidity in DeFi. With the additional $24.25 million in capital, Balancer Labs aims to increase awareness and education of the protocol in the Asia-Pacific region, to create and grow structures for community engagement, and to continue offering support for anyone in Decentralized Finance to build on top of Balancer Protocol.

The Additional Backers Are:

Blockchain Capital
Fintech Collective
LongHash Ventures
Fenbushi Capital
Continue Capital
Kain Warwick, Founder of Synthetix and Jordan Momtazi, Synthetix

Background on Balancer

Balancer started as a research project in early 2018 inside BlockScience. By exploring multidimensional invariant surfaces, the founding team came up with a powerful mathematical framework that enables any portfolio to continuously self-rebalance while also generating fees. A lot of effort went into carefully designing, testing, and simulating Balancer Protocol.

Our Mission

Balancer Protocol aims to become the primary source of DeFi liquidity by providing the most flexible and simple platform for asset management.

Balancer allows any token holder to provide liquidity with 100% of their assets by immediately turning their whole portfolio into a Balancer pool or adding it to existing pools. Balancer allows pools with up to 8 tokens, with any custom percentage distribution of value for each of them. Anyone can now create their own self-balancing index fund or invest in someone else’s.

With the recent launch of Balancer V2, the protocol has expanded to become a launchpad for AMM innovation. Any team or project can build on Balancer’s V2 vault and benefit from its aggregated liquidity and network effects.

What the New Backers Have to Say

By allowing for the most flexible and composable liquidity pools in the AMM space, the Balancer Protocol is uniquely positioned as a core infrastructure component for decentralized finance protocols and applications. We see this aspect of the technology in Balancer as a strong long-term indicator, as protocols that are widely embedded in higher-level systems are able to drive powerful network effects and defensive moats.” — Aleks Larsen, Investor at Blockchain Capital.

“Balancer combines the best features of an automated market maker (AMM) with a flexible portfolio management solution — turning the index fund structure in traditional asset management on its head. We believe that the gas efficient and regulatory minded architecture of the upcoming Balancer v2 will be a game-changer for DeFi.” Sean Lippel, Head of Digital Assets at FinTech Collective

“Balancer v2 marks a step-change not just in novel core innovation and UIUX, it comes hand in hand with the conscious acceleration of growing a Web 3.0 community of users and developers. We are excited to be a part of this journey especially in Asia, alongside our friends at Fenbushi Capital.”Shi Khai, COO at LongHash Ventures

“Continue Capital is excited to become one of the backers of Balancer. We believe that digital asset management is one of the essential infrastructures in the DeFi space. Balancer is paving the way for the next generation open financial world.”- Xiahong Lin, Founding Partner at Continue Capital

“Balancer is one of the most important lego blocks in DeFi with a team dedicated to liquidity and trading performance. We’re thrilled to support such a committed and switched-on group”- Jordan from Synthetix