Balancer Protocol Live on Arbitrum to Scale DeFi Liquidity
Balancer launches on highly anticipated Layer-2 solution Arbitrum
Balancer Protocol has launched support on the Layer 2 scaling solution Arbitrum to significantly reduce gas costs and scale liquidity. Within Ethereum’s layer-2 ecosystem, Arbitrum has established itself as a critical player, gaining adoption from other major DeFi projects after their launch announcement in June. Balancer Protocol joins Arbitrum on the day of their launch as users are now able to trade on the Balancer app using Arbitrum.
As of August 31, 2021 $84 billion is locked in DeFi, creating an incredible opportunity for projects to expand. However, soaring gas fees have made transactions on decentralized exchanges restrictive for smaller players. High gas fees limit opportunities to create, join, or exit pools and diminish the possibility of aggregating liquidity across several uniquely composed pools. With Arbitrum’s optimistic rollups, Balancer Protocol can operate as the ultimate flexible DEX.
“Arbitrum is a leading L2 solution, its distinctive features in scalability, especially compatibility with Ethereum, lead this industry to recognize that it will optimize the user experience and enhance growth. L2s show the promise of reducing Ether fees and network congestion, and we are excited Arbitrum is available to the Balancer ecosystem.”
Easier Access to Liquidity
The implementation of Arbitrum makes Balancer Protocol uniquely scalable. Arbitrum uses optimistic rollups, which removes the need for zero-knowledge proofs by changing the consensus mechanism. The network assumes all transactions are correct. Rather than verifying each transaction, users only intervene if one is incorrect.
Arbitrum can offer drastically higher transaction throughput than Ethereum while cutting gas fees to near zero. With a strong focus on user accessibility, the system allows users to experience a convenient, fast, and secure service through Layer-2 technology.
“We are incredibly excited that Balancer will be live on Arbitrum One at launch. Balancer is an important DeFi building block, and we look forward to working with the excellent Balancer team to bring more efficient, flexible trading experiences to Arbitrum users.” — Steven Goldfeder, Co-Founder & CEO
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 Arbitrum
Arbitrum is a scaling solution for Ethereum developed by Offchain Labs that drastically reduces costs and latency. An “Optimistic Rollup”, Arbitrum instantly scales apps, reducing costs and increasing capacity, without sacrificing Ethereum’s security. Porting contracts to Arbitrum requires no code changes or downloads as Arbitrum is fully compatible with most existing Ethereum developer tooling. Arbitrum has just launched its mainnet beta, Arbitrum One, on Ethereum mainnet.
