DeFi Protocol Balancer Joins Arbitrum to Scale Liquidity and Reduce Gas Fees – CryptoPotato

DeFi Protocol Balancer Joins Arbitrum to Scale Liquidity and Reduce Gas Fees – CryptoPotato

Leading automated market maker (AMM) Balancer Protocol has announced that it has launched support on the Layer 2 scaling solution, Arbitrum.

Balancer Launches on Arbitrum

In a press release shared with CryptoPotato on Tuesday, Balancer noted that the move is an effort to “significantly reduce gas costs and scale liquidity.”

Arbitrum is a leading scaling solution within Ethereum’s layer-2 ecosystem that has managed to make a name for itself in the industry despite being a relatively new project.

The explosive growth of the DeFi market has attracted many investors, pushing the total value locked in the sector to a whopping $82 billion. However, the influx of people into DeFi has also caused gas fees to shoot over the roof, thus making it difficult for small traders to create, join, and exit pools. This, in turn reduces the chances of aggregating liquidity across several uniquely composed pools.

Solving High Gas Fees and Scalability Issues

To solve this problem, Arbitrum introduced its optimistic rollups that improve scalability while reducing gas fees.


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The optimistic rollups remove the need for zero-knowledge proofs by changing the consensus mechanism. The network assumes all transactions are correct, allowing users to intervene only if one is incorrect rather than verifying all of them.

It also offers significantly higher transaction throughput compared to Ethereum, while cutting gas fees to near zero. With a strong focus on user accessibility, the system allows users to experience a convenient, fast, and secure service through Layer-2 technology.

With the recent integration, Balancer Protocol
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