The Balancer Protocol seeks to reduce gas costs for both blockchain users and developers.
The Balancer Protocol has been officially launched on Optimism, the leading Ethereum Layer 2 scaling solution. The protocol is designed to reduce gas costs and increase DeFi liquidity.
Balancer is a community-powered protocol, automated portfolio manager, liquidity provider and price sensor that empowers decentralized exchange and automated portfolio management of tokens on the Ethereum blockchain and other EVM compatible systems.
Fernando Martinelli, CEO and Co-Founder of Balancer Labs commented that;
“By launching on Optimism, Balancer is recognizing that it is a leading L2 solution. Its distinctive scalability, while inheriting the security of Ethereum, recognizes that it will enhance the user experience and accelerate development of L2s. shows promise for reducing transaction fees and network congestion, and we are excited to bring our technology to the Optimism ecosystem.”
According to a press release shared with CoinJournal, the front end of Optimism’s deployment will be handled by Beethoven X and the Balancer Protocol. Beethoven X is a community-driven DEX and DeFi powerhouse on the Phantom Network.
By working together, the two entities will put together a decentralized exchange (DEX) with the technical prowess and innovative capabilities needed to be a vital part of the optimism ecosystem.
Ben Jones – Chief Scientist of the Optimism Foundation said that;
“We are incredibly excited to see Balancer go live on optimism. Balancer is an important DeFi building block and seeks to bring a more flexible trading experience to the ecosystem. In addition, working with the excellent Balancer and BeethovenX teams A great opportunity to learn ‘in the wild’ from decentralized governance – a journey we have recently embarked on.”
Optimism is known to support all decentralized applications on the Ethereum network, known as the Optimism Rollup. Rollup works by assuming all transactions in the rollup are valid. Hence, an increase in Ethereum transactions per second and a huge reduction in fees.
The Ethereum network is known for its expensive transaction fees, increasing network congestion, and massive inefficiencies. These shortcomings have negatively affected the development of the Ethereum network. At the moment, Ethereum can support around 30 transactions per second, resulting in the above issue.
Balancer’s ability to reduce gas costs, super-charge capital efficiency, and unlock arbitrage with zero-token starting capital combined with Optimism’s scaling solutions will help meet the demands of a rapidly evolving DeFi environment. Will help.