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gerrrg authored and gitbook-bot committed Apr 20, 2021
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## What is Balancer?

Balancer Protocol is an automated portfolio management system, decentralized exchange, and price sensor that allows anyone to invest and trade ERC-20 tokens. While Uniswap uses a one-size-fits-all approach to pool design, Balancer exposes a tremendous deal of flexibility in liquidity pool design.
Balancer Protocol is an automated portfolio management system, decentralized exchange, and price sensor that allows anyone to invest in and trade ERC-20 tokens. While Uniswap uses a one-size-fits-all approach to pool design, Balancer exposes a tremendous deal of flexibility in liquidity pool design.

Balancer's Weighted Pools can have up to 8 assets and trade fees ranging from 0.0001% and 10%. Additionally, assets can have unequal weightings, so instead of using 50/50, someone could make a pool that has an 80/20 weighting to reduce [Impermanent Loss](https://explain.eli5defi.info/decentralized-exchanges#what-is-impermanent-loss-il).

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