Balancer Launches on Polygon to Reduce Gas Fees
The popular DeFi project Balancer Protocol has joined the fight against high fees by launching on the Layer-2 solution – Polygon. Upon the transition from Ethereum, Balancer also announced new token incentives, which came into effect from June 28th.
Balancer Joins Polygon
Promising to “turn the concept of an index fund on its head,” Balancer is a DeFi project enabling users to collect fees from traders instead of portfolio managers. The protocol announced its latest development in a press release shared with CryptoPotato earlier on July 1st.
The statement reads that Balancer has “launched support on the Layer 2 solution Polygon to reduce gas costs.”
Fernando Martinelli, Balancer Labs CEO and Co-Founder explained that the decision to choose Polygon came after a thorough review of all available options. However, the growth of the project, formerly known as MATIC, in terms of adoption from names like Aave and SushiSwap is what tipped the scale.
“Polygon has become one of the preferred L2’s for Ethereum. 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.” – he added.
Apart from promising lower fees for traders, the partnership between the two also aims to increase liquidity in DeFi, and make the space “accessible to everybody!”
“We are extremely thrilled to have Balancer launch on Polygon. We’re sure the Polygon community will enjoy utilizing Balancer with near-zero fees and superior user experience.” – noted Sandeep Naiwal – Co-Founder of Polygon.
The PR outlined a few differences for Balancer users coming after the launch on Polygon. Those include joint incentives on the network, which were approved in a recent vote.
More specifically, the project will distribute 25,000 BAL tokens per week from Balancer and 375,000 MATIC coins weekly from Polygon. Additionally, 30,000 Qi per week has been committed by the Qi Dao per pool for the two pools of which they will be a part.
The two parties will make available several index-like pools on Polygon, including deeper liquidity for Balancer, two experimental DeFi indices, a Polygon Index, and a Qi Dao ecosystem pool.