Balancer to Benefit From Polygon’s Lower Fees
- The incredible growth of Polygon played a huge roll in Balancer’s choice to launch support for the network.
- A joint incentives program will also be launched on the network, with Balancer providing 25,000 BAL tokens, and Polygon distributing 375,000 MATIC.
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Popular DeFi protocol Balancer is the latest project looking to escape from the higher fees on the Ethereum network by launching support for Polygon (previously Matic), Balancer said in a press release shared with The Chain Bulletin on 1 July.
According to the announcement, the decision to move to Polygon was taken after a thorough review of all available options, but what tipped the scale was the incredible growth of the Layer 2 solution, which is already used by DeFi projects such as SushiSwap, Aave, Curve, and others. The CEO and co-founder of Balancer Labs, Fernando Martinelli, said in a statement:
“Polygon has become one of the preferred L2’s for Ethereum. 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. Polygon will enhance Balancer’s ability to scale to more L2’s.”
While it is a separate blockchain, Polygon offers a smooth transition between the two networks through its bridge, which makes it ideal for DeFi projects, considering it has near-zero fees. By launching on Polygon, Balancer will also be able to benefit from the network’s support for Fast Exits and Deposits, ecosystem-native mobile apps, and a user-friendly SDK.
After Balancer’s expansion to Polygon, the community approved a vote to launch joint incentives on the network, with the liquidity mining committee expressing their desire for more index-like pools on Polygon. 25,000 BAL tokens will be distributed per week from Balancer and 375,000 MATIC tokens from Polygon, while an additional 30,000 Qi tokens will be distributed by the Qi DAO for each pool they are a part of.
- DeFi protocol Balancer confirmed it was exploited almost a week after disclosing a critical vulnerability affecting several of its boosted pools.
- The platform did its best to mitigate some of the risks but was unable to pause the affected pools, and an estimated $980,000 in DAI were stolen in an attack.
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