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Balancer Moves to Optimism to Optimize User Experience
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Balancer, decentralized finance (DeFi) protocol and an automated market maker has launched on the Ethereum layer two networks, Optimism. Optimism is a scaling solution built on top of the Ethereum network. The protocol supports projects that want to access low gas fees and high transaction speeds.
Balancer launches on Optimism
Optimism is one of the most popular layer two networks on the Ethereum blockchain. The network has continued to receive support from projects, and its total value locked (TVL) has been on an upward trajectory.
Balancer is one of the projects that have moved to Optimism to enjoy better user functionality. The deployment of Balancer on Optimism was achieved alongside Beethoven X. The latter is a decentralized investment based on the Fantom blockchain.
Beethoven X is a fork of the Balancer protocol. The two teams have reportedly launched a decentralized exchange (DEX) that will go live on the Optimism ecosystem and compete in the highly popular sector.
The CEO of Balancer Labs, Fernando Martinelli, commented on this move, saying, “By launching on Optimism, Balancer recognizes that it is a leading L2 solution. While inheriting Ethereum’s security, its distinctive scalability 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.”
The front-end deployment of Balancer will be spearheaded by Beethoven X. The exchange will lead the technical team of Balancer, and it will assist the protocol in becoming one of the largest players in the DeFi sector.
Growth of the Optimism protocol
Optimism is one of the largest layer two networks based on the Ethereum network. Other layer two networks on the blockchain include Polygon and Arbitrum. The Ethereum network experiences very high gas fees when the network is under increased demand.
For instance, Yuga Labs launched the Otherdeed non-fungible tokens (NFTs) in early May, causing increased traffic on the Ethereum network. This led to the gas fees soaring to record-high levels, and some transactions failed to go through.
Ethereum is expected to transition to a proof-of-stake network after The Merge is completed in August. Ethereum developers have already laid out the crucial processes needed to facilitate The Merge, and once this process is complete, users on the network could enjoy lower gas fees.
Meanwhile, layer two networks have become the ideal option for developers that want to escape the high costs of the Ethereum mainnet. Optimism is a layer 2 scaling solution built on the Ethereum network. The network is designed to speed up transactions and lower the transaction cost on the Ethereum network using Optimistic Rollups. These rollups are a scaling solution that runs parallel to the main Ethereum blockchain.
Optimism’s TVL has been on a steady uptrend over the past few months as developers rush to give their users access to low transaction costs and fast speeds. Optimism has more than $320 million in total value locked (TVL) on its blockchain, contributed by 38 projects. On-chain data shows that the TVL of the network reached an all-time high of $510M towards the end of April. Optimism is currently ranked as the 19th largest network by TVL.
The number of projects launching on Optimism has increased significantly over the past few months. One of the contributing factors to this growth is the token airdrop that has seen increased demand from users. The airdrop will happen in different phases, and around 250,000 addresses are eligible for the token airdrop.
To learn more visit our Investing in Balancer guide.
