WallStreetBets crypto app (WSBDApp’s) has partnerned with Balancer DeFi Protocol to bridge the gap between traditional and DeFi investing.
Balancer, a popular automated market maker, has announced a strategic agreement with WSBDApp, the WallStreetBets subreddit’s original founders’ blockchain-based trading platform.
WSBDApp’s decentralized exchange-traded portfolios (ETPs) will be offered on Balancer V2 as part of the partnership to “further expand the potential of DeFi and enhance crypto exposure to crypto-native and traditional investors alike.”
DeFi is a collection of decentralized financial applications aimed at displacing traditional investment by allowing for intermediary-free lending, borrowing, and trading.
Balancer is a self-balancing weighted portfolio system that allows anybody to build or add crypto liquidity to customized pools and earn trading fees. It was originally created on Ethereum. The ETP metaphor works well with this design.
Balancer also connected with the Algorand blockchain earlier this year, as well as the newly introduced Ethereum scaling solution Arbitrum.
The WSBDApp is launching a community-selected basket of stablecoins backed by fiat money like the US dollar, as well as tokenized commodities and cryptocurrencies like Wrapped Bitcoin (WBTC), Wrapped Ethereum (WETH), and others, thanks to its partnership with Balancer.
“The WallStreetBets community has something for everyone, and we’re teaching the world how financial markets should properly be managed with democratic tools like ETPs,” stated BTCVIX, the WSBDApp’s anonymous CEO.
Users will be able to connect their WSBDApp wallets to a portfolio rebalanced with the help of the Balancer protocol and then use fiat money to purchase a token representing their holdings.
About WallStreetBets
WallStreetBets, a contentious Reddit investment site, skyrocketed in popularity at the start of the year after members of the community orchestrated a bulk purchase of GameStop (GME) shares.
The episode triggered a so-called short squeeze, which saw the price of GME shares rise by as much as 400%, putting several Wall Street hedge funds out of business.
WSB announced in May that any crypto-related discussion on the subreddit would be banned “indefinitely,” but its founders revealed shortly after that they were working on WSBDapp, a decentralized trading app that would use “the transparency and community consensus mechanisms provided by blockchain and smart contract technology.”
The ultimate goal was to provide decentralized ETPs “an alternative to market manipulation perpetrated by opaque and politically connected banks and hedge funds.”
