Balancer Protocol seeks to reduce gas costs for both blockchain users and developers.
Balancer Protocol has officially launched on leading Ethereum Layer 2 scaling solution Optimism. The protocol is designed to significantly reduce gas costs and scale DeFi liquidity.
Balancer is a community-driven protocol, automated portfolio manager, liquidity provider, and price sensor that empowers decentralised exchange and the automated portfolio management of tokens on the Ethereum blockchain and other EVM compatible systems.
Fernando Martinelli, Balancer Labs CEO & Co-Founder commented that;
“By launching on Optimism, Balancer is recognizing that it is a leading L2 solution. Its distinctive scalability, while inheriting Ethereum’s security, led to the recognition that it will enhance the user experience and propel growth. L2s show the promise of reducing transaction fees and network congestion, and we are excited to bring our technology to the Optimism ecosystem.”
According to the press release shared with Coinjournal, the front end of the Optimism deployment will be handled by Beethoven X and Balancer Protocol. Beethoven X is a community-driven DEX and DeFi powerhouse on the Fantom network.
By working together, the two entities will put together a decentralised exchange (DEX) with the technical prowess and innovative capabilities required to become an important part of the Optimism ecosystem.
Ben Jones – Chief Scientist at Optimism Foundation stated that;
“We are incredibly excited to see Balancer going live on Optimism. Balancer is an important DeFi building block and seeks to bring a more flexible trading experience to the ecosystem. Moreover, working with the excellent Balancer and BeethovenX teams represents an awesome chance to learn from decentralized governance ‘in the wild’–a journey that we recently began ourselves.”
Optimism is known for supporting all decentralised applications on the Ethereum network by leveraging a technique known as optimistic rollups. The rollups work by assuming all transactions in the rollup are valid. Hence, increasing Ethereum’s transactions per second and drastically decreasing fees.
The Ethereum network is known for its expensive transaction fees, growing network congestion, and inability to scale significantly. These drawbacks have negatively affected the growth of the Ethereum network. At the moment, Ethereum can only support around 30 transactions per second, resulting in the aforementioned issues.
Balancer’s ability to slash gas costs, super-charge capital efficiency, and unlock arbitrage with zero-token starting capital combined with Optimism’s scaling solutions will help answer the demands of the fast-evolving DeFi environment.