Balancer innovated upon the automated market maker (AMM) model with the introduction of multi-asset pools and uneven pools with different token weightings, both of which have potential to lower impermanent loss.
The Balancer exchange can be complex and uneven pools have higher slippage costs due to its inherent design, which can result in lower trading volume and yield.
Balancer offers a great way for you to get exposure to a diverse group of crypto assets while earning yield as the pool is automatically rebalanced by external arbitragers.