Balancer is a multi-token automated market maker (AMM) that functions as a self-balancing weighted portfolio protocol. Users can deposit a ‘portfolio’ of coins into a liquidity pool. The unique function of BAL is that when users provide liquidity to the pool, users can provide multi-token liquidity with set percentage ratios between the different assets. This means that if one of the coins in the pool significantly increases in price, the smart contract function will automatically reduce the position and rebalance the value into the other assets to keep the set percentage ratio the same. Balancer allows for as many as eight tokens in a single liquidity pool. The BAL coin is the governance token which allows holders to vote on approving or declining proposals put forward by the Balancer community.