The adoption rate of a cryptocurrency is heavily dependent on its use cases in the real world. Balancer Protocol’s latest effort in this regard is the launch of support on the Layer-2 solution Polygon to reduce Ethereum gas costs.
With this partnership, Balancer joins the team of major DeFi projects lik Aave, Curve and SushiSwap, which have recently witnessed strong user adoption.
With Polygon (formerly MATIC) offering near-zero fees for trades, Balancer’s position as “the ultimate flexible AMM is more easily realized” given the ability to perform unique experimentation for pools without risking higher trade fees. While highlighting the ability to scale to more L2’s, Balancer Labs CEO and co-founder Fernando Martinelli said:
“We have noticed the amount of traction that Polygon has been getting and the transaction experience that it provides and Balancer wants that experience for our community and users”
According to the press release, “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.” Based on the consensus, the committee will continue experimenting with pool designs for Polygon with dedicated mining rewards in place.
Based on the community’s votes, the token incentives setup are “25,000 BAL per week from Balancer, 375,000 MATIC per week from Polygon and 30,000 Qi per week by the Qi Dao per pool for the two pools of which they will be a part,” totaling $10 million in total.
Polygon co-founder Sandeep Nailwal concluded, “We’re sure the Polygon community will enjoy utilizing Balancer with near-zero fees and superior user experience.”
Sourced from cointelegraph.com.
Written by Arijit Sarkar on 2021-07-01 13:09:20.