DeFi Protocol Balancer Launches on Ethereum’s Layer 2 Scalability Platform Optimism

UTC by Bhushan Akolkar · 2 min read
DeFi Protocol Balancer Launches on Ethereum’s Layer 2 Scalability Platform Optimism
Photo: Unsplash

Balancer worked along with decentralized investment platform Conjunction X to deploy a decentralized exchange (DEX) that will compete within the Optimism ecosystem.

Decentralized finance (DeFi) protocol and automated market maker Balancer has launched on Optimism, an Ethereum Layer-2 scalability platform. This move will help Balancer to enhance user functionality by reducing fees and increasing scalability.

Balancer Deployment on Optimism

Balancer successfully conducted its deployment on Optimism in conjunction with decentralized investment platform Conjunction X. Together, both the teams have deployed a decentralized exchange (DEX) that will compete within the Optimism ecosystem.

Balancer Labs CEO Fernando Martinelli said that the successful deployment of the protocol restores the belief that Layer-2 solutions could be effective in reducing network congestion and transaction fees. He added:

“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.”

About Optimism

Similar to Polygon, Optimism is a Layer-2 scalability solution for the Ethereum blockchain network. It aims at catering to low-cost and faster transactions on the Ethereum blockchain. Optimism supports all decentralized applications (DApps) on Ethereum via Optimistic Rollups, a scaling solution that runs in parallel with the Ethereum mainnet.

Currently, Optimism hosts 38 DeFi projects with more than $320 million in total value locked (TVL). Speaking about the recent development, Ben Jones – 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.”

Ethereum Layer-2 solutions like Polygon and Optimism have played a key role catering to the need of the DeFi protocols. The Ethereum blockchain network can process only 30 transactions per second. These Layer-2 solutions ease the network load considerably.

The demand for Optimism has grown very high recently as the network was preparing for a token launch. The token airdrop for Optimism’s OP governance token shall happen in multiple phases.

Altcoin News, Blockchain News, Cryptocurrency news, Ethereum News, News
Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

WhaleMaker
Related Articles
WhaleMaker