Balancer becomes the latest project to team up with Polygon for Layer 2 solution

Polygon (MATIC/USD) Network’s Layer 2 solution has attracted a lot of attention in recent months. Thanks to its ability to reduce gas costs, the project has already teamed up with plenty of high-profile protocols from the DeFi sector. Some of its clients include the likes of SushiSwap (SUSHI/USD), Aave (AAVE/USD), Curve (CRV/USD), among others. On Thursday, it was announced in a press release that another DeFi protocol joined hands with the company, seeking the same benefits — Balancer (BAL/USD).

Balancer joins up with Polygon to reduce gas fees

Polygon’s L2 solution has revolutionized the way many DeFi protocols work, even opening the doors to some unique experimentation for pools. Doing anything with pools, including creating, joining, or even exiting them, can be extremely expensive if the gas costs are high. Not to mention that the same issue is extremely damaging when it comes to aggregating liquidity across different, uniquely composed pools.

But on Polygon, these costs are “driven toward zero” and the value proposition of Balancer as the ultimate flexible AMM is “more easily realized,” the press release read. Balancer’s CEO Fernando Martinelli commented that Polygon has already become “one of the preferred” L2s for Ethereum (ETH/USD). Martinelli added:

We have noticed the amount of traction that Polygon has been getting and the transaction experience that it provides and Balancer wants that experience for our community and users. Polygon will enhance Balancer’s ability to scale to more L2’s

Cutting the gas fees has been one of Balancer’s goals for some time now, and the Polygon partnership “makes this possible.” Martinelli continued by saying that he and his team believe that Balancer and Polygon could work closely together to reduce fees in DeFi, as well as bring additional benefits, such as improving liquidity and make DeFi more accessible to everyone.

How does it all work?

While Polygon is a scaling solution meant for Ethereum, it is actually a separate blockchain, with its own parameters and features. This implies assets need to be moved to the Polygon Network, which is done via a bridge. However, from the users’ point of view, it is all very quick and seamless, as Polygon spent a lot of time and effort on simplifying access to the decentralized world. The transitions are very smooth, and the project enables fast deposits and exits, as well as its own mobile apps, and even a user-friendly SDK.

Polygon’s co-founder, Sandeep Nailwal, also commented on the integration, saying that the team is thrilled to have Balancer join its growing family. He said:

We’re sure the Polygon community will enjoy utilizing Balancer with near-zero fees and superior user experience.”

Another thing to note is that, after Balancer’s expansion from Ethereum to Polygon, there was a vote that approved the inclusion of joint incentives on the network. There have been several incentives that were already approved, and started a few days ago, on June 28th. Those include:

  • 275,000 MATIC per week from Polygon
  • 25,000 BAL per week coming from Balancer
  • 30,000 Qi per week from Qi Dao, per pool for the two pools of which they will be a part of

The post Balancer becomes the latest project to team up with Polygon for Layer 2 solution appeared first on Invezz.

Publication date: 
07/01/2021 - 13:21
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