Decentralized finance (DeFi) users are still coping with high fees while entering Ethereum (ETH).
Balancer, a non-custodial portfolio manager and automated market maker, has been launched on the leading Ethereum Layer-2 scaling solution dubbed Optimism. The initiative was carried out in order to provide DeFi liquidity provision and reduce gas costs.
CEO and co-founder of Balancer Labs Fernando Martinelli stated that activation of Optimism underlines the project’s view that Layer-2 scaling solutions will eventually provide support in reducing transaction costs and network congestion. He explained:
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“By launching on Optimism, Balancer is recognizing that it is a leading L2 solution. Its distinctive scalability, while inheriting Ethereum’s security, 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.”
On top of that, Optimism is reportedly supporting all dApps on Ethereum (ETH) network through Optimistic Rollups, a type of L2 mechanism that doesn't function on ETH's base layer but on top of it.
According to the announcement, Optimism’s deployment will be backed by Beethoven X, a community-driven AMM protocol based on the Fantom Network and built on Balancer v2.
Chief Scientist and co-founder of Optimism Ben Jones implied that the scaling solution sees a lot of potential in the decentralized finance building block Balancer that aims to provide the crypto environment with a more versatile trading experience.
“Moreover, working with the excellent Balancer and Beethoven X teams represents an awesome chance to learn from decentralized governance ‘in the wild’ – a journey that we recently began ourselves.”
As of now, Optimism has roughly $350 million in TVL on its blockchain from 39 projects with a 4.23% change in the past 24 hours.
The $600B worth ETH network is constantly being suffocated by excessive transaction fees and the inability to scale massively due to the current transactional capacity limitations that support around 30 TPS.
Back in March, the decentralized exchange KyberSwap was also deployed on Layer-2 Network Arbitrum. The partnership was formed in order to reduce high fees on the ETH network through L2 scaling.
In other news, earlier this year, DeFi protocol dubbed Injective (INJ) cooperated with Wormhole, a token bridge protocol, to introduce 10 new Layer-1 and Layer-2 blockchains into its established network.
