The acceptance rate of a cryptocurrency largely depends on its real-world use cases. Balancer Protocol’s latest effort in this regard is the introduction of support in Polygon’s Second Layer (L2) solution to reduce gas costs on Ethereum.
With this partnership, Balancer becomes part of the team of leading DeFi projects such as Aave, curve Yes SushiSwap, which have seen strong user adoption recently.
With Polygon (formerly MATIC) offering almost no fees on trades, Balancer’s position as “the ultimate flexible AMM is easier to conduct” as unique experiments can be conducted for pools without the risk of operating fees. Fernando Martinelli, CEO and Co-Founder of Balancer Labs, highlighted the opportunity to scale to more L2:
“We realized how much traction Polygon had and the transactional experience it provided, and Balancer wants that experience for our community and our users.”
According to the press release, “The Liquidity Mining Committee has expressed a desire to focus on more index-like groups in Polygon to highlight Balancer’s unique value proposition in L2.” Based on consensus, the committee will continue to experiment with pool designs for Polygon with dedicated mining rewards.
Based on community votes, the token incentive settings are “25,000 BAL per week from Balancer, 375,000 MATIC per week from Polygon and 30,000 Qi per week from Qi Dao per pool for the two pools you will be attending”, to a total of $ 10 million.
Â The co-founder of Polygon, Sandeep Nailwal, closed: “We are confident that the Polygon community will be using Balancer with near zero fees and a better user experience.”