Balancer Joins Polygon’s Summer of DeFi with $10 Million in Joint Token Incentives
Balancer Protocol launches on Layer 2 solution Polygon
Balancer Protocol has launched support on the Layer 2 solution Polygon to reduce gas costs. Polygon (MATIC) has seen strong user adoption this year with major DeFi projects like Aave, SushiSwap, and Curve deploying there. The time has come for Balancer to join the party.
With near-zero fees to make a trade, unique experimentation for pools becomes possible. When gas fees are high, it can be cost-prohibitive to create, join, or exit pools. Furthermore, aggregating liquidity across several uniquely composed pools is impractical due to the extra gas required for each included pool. But on Polygon, those costs are driven toward zero, and the unique value proposition of Balancer as the ultimate flexible AMM is more easily realized.
“Polygon has become one of the preferred scaling solutions for Ethereum. We have noticed the amount of traction that Polygon has been getting and the great user experience that it provides and our community really wants that. Polygon will enhance Balancer’s ability to scale further using L2s.” — Fernando Martinelli, Balancer Labs CEO & Co-Founder
One of Balancer’s goals has been to lower gas fees for traders on Ethereum and the implementation on Polygon makes this possible. Check out this tutorial to learn more. We believe that Balancer and Polygon can work closely to increase liquidity in DeFi, lower trading fees to zero, and make DeFi accessible to everybody!
Scaling Access to DeFi
Polygon is a scaling solution for Ethereum with fast and cheap transactions. It is a separate blockchain with different features and parameters which requires moving funds across a “bridge” to get on the Polygon/MATIC network.
Polygon has been working to simplify access to the decentralized world through a focus on user experience. Polygon offers smooth transitions from Ethereum to Polygon, support for Fast Exits and Deposits, ecosystem-native mobile apps, and a user-friendly SDK combined with the lowest transaction speeds and fastest confirmation times in an EMV-compatible chain.
“We’re 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.”- Sandeep Nailwal, Co-Founder, Polygon
Token Incentives
Following the Balancer Protocol’s expansion from Ethereum to Polygon, a vote was approved to include joint incentives on the network. The liquidity mining committee has expressed a desire to focus on more index-like pools on Polygon to emphasize the unique value proposition of Balancer on L2.
The following incentives were approved and began on June 28th, 2021:
- 25,000 BAL per week from Balancer
- 375,000 MATIC per week from Polygon
- 30,000 Qi per week has also been committed by the Qi Dao per pool for the two pools of which they will be a part
The index-like pools available on Polygon include:
- A “base pool” targeting deep liquidity for Balancer on Polygon: WMATIC/USDC/WETH/BAL
- Two “DeFi indices” for experimentation, each containing LINK/WETH/BAL/AAVE
- One “Polygon Index” featuring SUSHI/WMATIC/USDC/QI/WETH/QUICK/BAL/ADDY
- A “Qi Dao ecosystem pool” including WMATIC/USDC/QI/BAL/MAI and earning 15,000 QI tokens per week in addition to the BAL and MATIC tokens
With the stable pool factory set to go live very soon, another pool will also be incentivized:
- A “base stable pool” containing the standard USDT/USDC/DAI, as well as Qi Dao’s stablecoin MAI
The liquidity mining committee is determined to continue experimenting with and iterating on pool designs for Polygon. We expect more pools will come to Polygon over the next several weeks; watch out for them here. All pools receiving incentives have yellow stars in the APY column, and the liquidity mining rewards for the week ahead can be seen on Monday at 00:00 UTC each week.
👉 Try Balancer Protocol on Polygon now 👈
About Balancer
Balancer’s mission is to accelerate innovation in DeFi by providing access to secure infrastructure for liquidity applications. As a core building block of DeFi, Balancer Protocol is community driven and is reliable, open-source, and permissionless. Projects build on Balancer to create new, innovative types of pools and financial dApps.
About Polygon
Polygon is the first well-structured, easy-to-use platform for Ethereum scaling and infrastructure development. Its core component is Polygon SDK, a modular, flexible framework that supports building and connecting Secured Chains like Plasma, Optimistic Rollups, zkRollups, Validium, etc, and Standalone Chains like Polygon POS, designed for flexibility and independence. Polygon’s scaling solutions have seen widespread adoption with 450+ Dapps, 350M+ txns, and ~13.5M+ distinct users.
If you’re an Ethereum Developer, you’re already a Polygon developer! Leverage Polygon’s fast and secure txns for your Dapp, get started here.
