Balancer protocol, one of the building blocks of DeFi infrastructure, has announced its launch on Ethereum Layer 2 scaling solution, Optimism.
The deployment of Balancer on Optimism would result in improved scalability, user experience, and cheaper gas fees. In this article, you will learn more about this alliance.
Balancer Protocol Launches on Optimism
Balancer launched on Optimism while partnering with Fantom-based portfolio manager, Beethoven X. The partnership between both teams would trigger a new wave of competition in Optimism. This alliance will produce one of the leading DEXes.
So, the result would be a platform that has all it takes to become a powerful participant in the Optimism ecosystem.
Shut the engines off and take out the key 🚗
Balancer 👏 Has reached 👏 @optimismPBC
With the help of our frens at @beethoven_x, we’re bringing our AMM technology to this promising new chain 🧵🧵🧵 pic.twitter.com/Vj4Y4JB67W
— Balancer Labs (@BalancerLabs) June 2, 2022
Optimism is Changing the Ethereum’s Narrative
Exorbitant transaction costs, increasing congestion in the network, and a failure to scale at a larger level have stifled the Ethereum network’s growth. Additionally, most users complain about Ethereum’s slow rate and cost as their biggest challenge in using the platform. Ethereum can only handle about 30 transactions per second at the moment.
Therefore, Optimism offers a whole new experience for Ethereum users. It also seeks to:
- Solve the issue of transaction rate and cost for Ethereum users. Optimism uses a mechanism known as optimistic rollups to support all DApps on the Ethereum network. These Optimistic rollups presume that all transactions in the rollup are genuine.
- Significant increase in Ethereum’s transactions per second.
- A significant reduction in fees.
- Boost capital efficiency.
- Unlock arbitrage with zero-token merged with Optimism’s scaling solution.
Also, the DeFi space is growing at a rapid rate. The need for speed and accuracy has never been greater. So, Balancer’s launch on Optimism would help the platform meet the growing needs of DeFi users. Both Balancer and Optimism will supply their A-games to achieve their goals.
With this launch, @Balancer recognizes Optimism as a leading L2. Its distinctive scalability, while inheriting Eth’s security, enhances the user experience and propels DeFi growth. We are excited to bring our technology to the @optimismPBC ecosystem.
— Balancer Labs (@BalancerLabs) June 2, 2022
Balancer’s technical skills to slash gas costs that will cheerlead the future DeFi users have long waited for.
Reaction to the Partnership
The partnership holds mutual benefit for all the parties involved. And as a result, each spoke highly of collaborating to begin a new era. Fernando Martinelli, Balancer Labs CEO & Co-Founder said: “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.”
On the other hand, Ben Jones, the Chief Scientist at Optimism Foundation, said: “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.”
Finally, at the moment of publishing this article, according to DeFillama, Optimism’s TVL is at $357.25 million. It has more than 30 projects currently on its chain. Also, Optimism’s userbase has seen a huge increase in the last few weeks. On overall, there is a lot of excitement surrounding this project—all that is about to hit a new level with Balancer’s arrival.
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