The Game Theory of Crypto with Fernando Martinelli
The Charlie Shrem Show
My guest today is Fernando Martinelli, Co-Founder and CEO of Balancer Labs. Balancer Labs is the company behind Balancer. Balancer is an automated market maker (AMM) that was developed on the Ethereum blockchain and launched in March 2020. It was able to raise a $3M seed round by Placeholder and Accomplice. Balancer protocol functions as a self-balancing weighted portfolio, price sensor and liquidity provider. It allows users to earn profits through its recently introduced token ($BAL) by contributing to customizable liquidity pools. Although Balancer isn’t the first DeFi protocol to make use of AMMs, however, it has brought a new face and approach to liquidity. The unique feature of the protocol is that it allows Liquidity providers to have up to eight assets per market which are weighted by percentage and rebalanced automatically. Fernando has been part of several startup companies before Balancer, which include PrepLounge in 2014, Brasil Mate also in 2014. Before these startups, Fernando worked at Honda Research Institute Europe GmbH in Frankfurt, Germany in 2010; and Bain & Company also in Germany in 2011. In our conversation, we cover Balancer, DeFi’s exponential growth, and Ethereum/EIP-1559. Fernando discusses the Eth/BTC flippening and why he believes it’s inevitable. Fernando goes on to explain the EIP-1559 upgrade and what it could mean for the Ethereum ecosystem. We go on to discuss how projects are on a path to decentralization and how decentralization is a spectrum. Fernando also discusses Balancer and how their liquidity pools function. We end our discussion talking about why the future of finance will be built on crypto rails and why building open source financial systems is important for humanity. Please enjoy my conversation with Fernando Martinelli --ParaSwap:If you want to make a swap at the best price across the DeFi market, check out https://untoldstories.link/paraswap. ParaSwap’s state-of-the-art algorithm beats the market price across all major DEXs and brings you the most optimized swaps with the best prices, and lowest slippage.---This podcast is powered by Blockworks. For exclusive content and events that provide insights into the crypto and blockchain space, visit them at https://blockworks.co
Balancer WEBSITE: https://balancer.fi/ TWITTER: https://twitter.com/BalancerLabs DISCORD: https://discord.com/invite/ARJWaeF ----- DEFITIMES 📺 YOUTUBE: https://www.youtube.com/channel/UC1OQVVbpl4tc5ri0bEYEzRQ 💻 WEBSITE: https://defitimes.io 🦄 DISCORD: https://discord.gg/KSQyKYZ7vD 🚀 SUBSCRIBE TO NEWSLETTER: https://defitimes.substack.com 📲 FOLLOW ON TWITTER: https://twitter.com/defitimes ✅ FOLLOW ON INSTAGRAM: https://www.instagram.com/defitimes ----- 🌖 FOLLOW JURI: INSTAGRAM: https://www.instagram.com/maibaum.eth/ TWITTER: https://twitter.com/jurimaibaum 📈 FOLLOW FABI: TWITTER: https://twitter.com/fabianklauder ----- PODCAST SUMMARY Interview with CEO of Balancer Labs - Fernando Martinelli ----- DISCLAIMER All information presented in this podcast is meant for informational purposes only and should not be treated as financial, legal, or tax advice. This podcast’s content solely reflects the opinion of the producer, who is not a financial advisor. Investing in cryptocurrencies is risky!
The Future of DeFi and the role of AMMs and DEX in crypto, with Fernando Martinelli of Balancer Labs
The Metaverse Podcast
We discuss the importance of AMMs (Automated Market Makers) and DEX (Decentralised Exchanges) to crypto, especially the role of Balancer Smart Pools to allow for price discovery and the bootstrapping of liquidity for new token projects. We discuss the unstoppable nature of DeFi, how to design or at least accommodate for its attack vectors, flash loans as a feature, and how the world of DEXs will interact with CEXs (Centralised Exchanges) long-term.
"I Do Believe Ethereum Will Flip Bitcoin in the Next Four Years:” Balancer's Fernando Martinelli
The Defiant - DeFi Podcast
In this week’s episode, I speak with Illia Polosukhin, cofounder of the Near Protocol and Fernando Martinelli, co-founder and CEO of Balancer Labs. Near is one of the up and coming Layer 1 chains, Balancer is a prominent DeFi protocol and application on Ethereum that will now also be on Near and other blockchains. As for Near being labeled an “Ethereum Killer” Illia says Near is “not trying to kill anybody.” He thinks finance is just a stepping stone for all the use cases enabled by blockchains and that Near can be the place where those consumer apps are built. Fernando says DeFi will live on many different Layer 1s, but he sees the space expanding into less than 10, not hundreds of chains. He remains very bullish on Ethereum and is betting on a flippening with Bitcoin in the near future, which Illia agreed would be “totally possible.”
Base Layer Episode 162: Fernando Martinelli, CEO & Co-Founder of Balancer; is it an inverse ETF, what are Smart Pools & their role in DeFi
Fernando joins me on Base Layer at such an amazing time in the growth of DeFi, where the total value locked (TVL) was $830M end of April 2020 to almost $5B as this podcast gets released. Balancer is a n-dimensional automated market-maker built on Ethereum so we learn what that means, what's being done via Balancer in platforms such as Smart Pools, what their native token BAL provides participants and how some out there believe Balancer eliminates "“impermanent loss". So much in this one -- check it out! For more about Balancer check out their blog here.
Balancer vs. Uniswap, Yield Farming and DeFi Moats - Fernando Martinelli, Balancer Labs, Ep. 109
The Blockcrunch Podcast
With the DeFi yield farming craze in full swing, Balancer Labs founder Fernando Martinelli (@fcmartinelli) joins us in discussing one of the hottest projects in the crypto space. We discuss: Balancer's origins What are "automated market makers"? How does Balancer differ from Uniswap? Will aggregators destroy value capture for decentralized exchanges? Do new AMMs like Thorchain & Bancor work? Host: Jason Choi (@MrJasonChoi). If you enjoyed the show, consider tipping! This show is not financial advice; show host and guest may hold some of the assets discussed. BTC: 3EFSLnPpme6Lo6DynN1bVV9owooueFvEmJ ETH: 0xdec40AA30B9C562aB4b839529BfC290C1B5Da61E ** Resources: Borrow and lend crypto at market-beating rates: Nexo.io Subscribe to my essays here: jasonchoi.substack.com **** Musical credits: Transition track: "BHANGER" by Phortissimo. Used with permission Outro track: "LEMMiNO - Infinity [Chill]" is released under a Creative Commons license (BY-SA) 4.0 Music provided by BreakingCopyright: https://youtu.be/uweorwa3q34 Disclaimer: Jason Choi is an investor at Spartan Capital, the hedge fund arm of The Spartan Group. All opinions expressed by Jason and podcast guests are solely their own opinions and do not reflect the opinion of The Spartan Group and any of its subsidiaries and personnel. This podcast is for information purposes only and should not be relied upon as a basis for investment decisions.
Fernando Martinelli: Balancer – The Automated Market Maker Protocol for Programmable Liquidity
Epicenter - Learn about Crypto, Blockchain, Ethereum, Bitcoin and Distributed Technologies
Balancer is a generalized automated market maker (AMM) protocol built on Ethereum. It allows anyone to create or add liquidity to customizable pools and earn trading fees. On one side there are liquidity providers (LPs) that generally seek to balance their holdings, and they get rewarded with trading fees. On the other side, traders that are looking for the best rate possible.One way to look at Balancer is as a generalization of Uniswap, however Balancer pools aren't restricted to the same 50/50 split between 2 tokens. A Balancer pool can support up to 8 tokens with any weights. It supports smart order routing which ensures trades get sent to the pools which provide the best rate possible. They can be seen as self balancing index funds which pay you for contributing liquidity to the platform. Instead of paying fees to portfolio managers to rebalance your portfolio, you collect fees from traders, who continuously rebalance your portfolio by following arbitrage opportunities.The inner workings are quite complex but CEO & Co-founder of Balancer, Fernando Martinelli, breaks down the token economics and governance of the protocol for us.Topics covered in this episode:Fernando’s background and how he got into the spaceBalancer's connection to MakerAn introduction to liquidity mining and some of the problems with thisThe connection to the Uniswap formulaWhat Balancer is and how the protocol worksHow does this work as a Portfolio Management tool and how dynamic are the feesHow smart pools wok - The network of pools and the offchain set upHow the weighting system works on BalancerThe options for users - keeping it simple and the data that is available in your Balancer accountGovernance tokensHow the BAL token is designed and how it worksHow finance for the protocol is raisedThe future plan of dissolving BalancerHow they plan to attract volumeWhat’s coming up in Balancer V2Episode links: Balancer WebsiteBalancer White PaperBalancer DiscordBalancer BlogBalancer TwitterFernando TwitterThis episode is hosted by Sunny Aggarwal & Meher Roy. Show notes and listening options: epicenter.tv/350