Balancer launches on Optimism
Balancer launches on Optimism a low-cost and lightning-fast Ethereum L2 blockchain. The protocol Balancer went live on leading Layer 2 rollup network Optimism with the help of its friends at Beethoven X.
Ethereum’s scaling challenges have led to prohibitive gas fees that increasingly exclude people from using the network to access decentralized finance (DeFi) applications.
Optimism promises powerful improvements including additional scaling, smart wallet EOAs (no “approves”, pay gas in any token), and decentralization of the transaction sequencing operation.
“With this launch, Balancer recognizes Optimism as a leading L2 solution. Its distinctive scalability, while inheriting Ethereum’s security, will enhance the user experience and propel DeFi growth. L2s show the promise of reducing transaction fees and network congestion, and we are excited to bring our technology to the Optimism ecosystem.” — Fernando Martinelli, Balancer Labs CEO & Co-Founder.
Balancer launching on the Optimism network ensures DeFi liquidity provisioning with the scope for sustainable, scalable, innovative growth that is highly competitive in the L2 network. The network’s total value locked (TVL) has grown significantly in the past few months despite the market.
Optimism currently ranks as the third-largest L2 with around 13% Layer 2 market share. Optimism is the fifth chain on which Balancer is live, with the protocol also having launched on Ethereum, Fantom, Arbitrum, and Polygon. The Optimism launch will cement Balancer’s technology on a promising new chain.
Optimistic Numbers:
- Optimism currently has around $620 Million TVL on chain.
- Gas Fees are, on average, 96x less than on Ethereum
- The L2 conducts around 84,000 transactions per day
- Ecosystem monthly revenue caps about $2.2 million
Optimism Incentives
Furthermore, the Optimism deployment plugs into veBAL gauges, so the underlying emission token will be $BAL. However, at launch, temporary incentives in the form of $BAL and $BEETS have been allocated until the gauge integration is complete.
In March, Balancer launched a new tokenomics model. The veBAL holders vote via a gauge system to direct token emissions to certain Pools. Beethoven X has already committed 3M BEETS for incentivizing veBAL holders to direct emissions towards Optimism Pools.
More explanation about the deployment
In addition, a proposal will soon be made to Optimism Governance for OP incentives. OP will be used as an additional incentive for $veBAL holders to direct emissions to Boosted Pools, to efficiently bootstrap AMM liquidity and lending markets on Optimism. The goal is to make Optimism Balancer’s primary network of operation and showcase the most advanced DEX DeFi has ever seen.
In addition, this strategic decision to deploy Optimism introduces Balancer Protocol AMM technology to an entirely new ecosystem of Optimism. Ensure users of DeFi liquidity provision with the scope for sustainable, scalable, as well as innovative growth. It is highly competitive in the L2 network.
By collaborating with Beethoven X, communities can work together to shape the future of liquidity for DeFi. The innovation that Optimism brings to the table in terms of scalability, speed, and capital efficiency. It will also foster the perfect environment needed for its Protocol to flourish.
ABOUT Balancer
Balancer is a community-driven protocol, automated portfolio manager, liquidity provider, and price sensor that empowers decentralized exchange and the automated portfolio management of tokens on the Ethereum blockchain and other EVM compatible systems.
ABOUT Optimism
Optimism is built according to a strong design philosophy that stands on four main pillars: simplicity, pragmatism, sustainability, and, optimism. It’s important to understand these pillars as they heavily influence the design of Optimism as a whole.
RESOURCES
Medium
