Balancer is a protocol for programmable liquidity. It allows anyone to create liquidity pools with up to 8 tokens and any arbitrary weights and trading fee.

The protocol ensures that these pools are constantly rebalanced so that they act as index funds. However, instead of paying managers to rebalance the index fund, liquidity providers get paid for the service of providing liquidity for traders. This happens through a small trading fee that each pool charges when a trade uses their liquidity.

Balancer has been used by major protocols in DeFi such as Aave and bZx as a central component in their system/tokenomics.

Learn more about Balancer.
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