DeFi Platform Balancer to Join Layer 2 Solution, Polygon Network, In A Bid to Reduce Fees
Balancer joins Polygon, formerly Matic network, to reduce the fees and improve scalability on its platform. Token incentives of up to $10 million will be distributed to users in line with the move to Polygon.
Decentralized asset management platform, Balancer is expanding to Polygon, Ethereum’s Layer 2 solution, to reduce transaction fees and increase scalability for users. Announced Thursday, the move to Polygon responds to the high fees experienced on Ethereum and the boost in user activity on Polygon in recent months. A tweet from the Balancer team reads,
“We are thrilled to announce that Balancer Protocol has expanded to layer 2 solution, Polygon.”
“We believe that Balancer Labs and Polygon can work closely to increase liquidity in DeFi, lower trading fees to zero, and make DeFi accessible to everybody!”
As DeFi liquidity programs advance, high gas costs have made it practically impossible to experiment o different liquidity pools due to the costs involved in creating, joining, or exiting a pool. Furthermore, aggregating liquidity across several uniquely composed pools is also a challenge due to high gas costs.
Polygon does away with the high gas costs by offering users close to zero-fee transactions enabling experimentation on several pools. As such, several DeFi platforms, including AAVE, Sushi, and Curve, have deployed pools there, and it is quickly becoming “one of the preferred scaling solutions for Ethereum,” Fernando Martinelli, Balancer Labs CEO & Co-Founder said in a statement. Martinelli said,
“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.”
Following the expansion to Polygon, Balancer’s liquidity mining committee voted to extend incentives to users on the platform with BAL, MATIC, and Qi rewards to be disbursed every week. Moreover, Balancer aims to introduce its index liquidity mining program featuring a “base pool” featuring (WMATIC/USDC/WETH/BAL), two “DeFi indices” (LINK/WETH/BAL/AAVE), a Polygon index (SUSHI/WMATIC/USDC/QI/WETH/QUICK/BAL/ADDY) and a Qiswap index (WMATIC/USDC/QI/BAL/MAI).
The incentives started on June 28th, 2021, with 25,000 BAL distributed per week from Balancer, 375,000 MATIC from Polygon, and 30,000 Qi per week by the Qi DAO pool.