Balancer Labs announced that both Pantera Capital and Alameda Research have recently invested in Balancer through direct purchase of BAL tokens from the company treasury. This is significant news as the new funding comes from two of the biggest names in the industry and is set to power the second evolution of the Balancer protocol.
— Balancer Labs (@BalancerLabs) November 9, 2020
As a quick refresher, Balancer is an Etherem-Based Automated Market Maker (AMM) Protocol with more flexibility and customization built-in than most of its peers currently on the market. The BAL token gives its holders governance rights over the Balancer protocol.
Pantera Capital is the first institutional investment firm to focus solely on bitcoin, digital currencies, and companies in the blockchain ecosystem. They famously launched the first US-based cryptocurrency fund in 2013 when Bitcoin price was still around $65.
Alameda Research is one of the leading market makers in the crypto space and has significant funds deployed across almost all the major DeFi platforms. They’ve recently been revving up their VC investments as well in an effort to propel the growth of the crypto ecosystem.
Fernando Martinelli, CEO of Balancer Labs expressed his approval on the partnership as both Pantera and Alameda are amongst the select group of crypto investors that have actual hands-on experience in DeFi. Beyond just providing capital as BAL token holders, both of these organizations provide additional value by being end-users of the protocol. Pantera and Alameda both see Balancer as one of the key projects in DeFi that continues to move the entire space forward by creating trading and liquidity opportunities that literally can’t be found anywhere else.
The team at Balancer Labs has clearly been busy as we can see from the multiple up and coming DeFi projects choosing to adopt Balancer’s Liquidity Bootstrapping Pool (LBP) including APYFinance and Nsure Network. The new-age AMM will also look to be the first major DeFi application to crossover to another layer 1 chain other than Ethereum by building Balancer on Near Protocol.
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