According to the Algorand’s press release, leveraging Balancer’s services on the network will enable exchanges to create trading pairs with any Algorand Standard Asset (ASA). The company expects the number of assets issued on Algorand to increase, which represents a significant opportunity for mass adoption.
“As a trusted pillar of the Ethereum community, Balancer has played a key role in providing this decentralized liquidity for its users since inception,” Algorand said in the release.
The initiative will explore how the Balancer platform can work on Algorand, given the blockchain’s specific trade-offs and characteristics. Reach, a decentralized blockchain platform providing a specialized programming language and compiler, will build the implementation of Balancer on Algorand. The platform will provide extra safety guarantees for Balancer by applying formal verifications to the deployed application.
Balancer is set to bring innovation and decentralization to Algorand that will help the blockchain drive its service costs lower. Sean Ford, the COO at Algorand, said that the platform was uniquely positioned at the convergence of traditional and new financial models, both of which require transparent and efficient decentralized core infrastructure. Balancer will bring higher throughput and scalability in programmable liquidity to the assets launched on Algorand, he added.