The automated market making and decentralized finance (DeFi) protocol Balancer has been officially rolled out on Optimism, Ethereum’s much-touted layer 2 scaling solution in a move designed to improve user functionality by increasing scalability and lowering fees.
Balancer’s Optimism deployment was carried out in conjunction with Beethoven X, a decentralized investment platform on the Fantom network that was forked from Balancer v2. Both teams are said to have developed a decentralized exchange that is poised to compete in the Optimism ecosystem.
Balancer Labs CEO Fernando Martinelli said the rollout of its Optimism project reflects the belief that Layer 2 scaling solutions will be effective in reducing transaction fees and network congestion.
Optimism is a layer 2 scaling solution designed to bring faster and lower cost transactions to Ethereum. The network is said to support all decentralized applications on Ethereum through Optimistic Rollups, a scaling solution that operates in parallel with the Ethereum mainchain.
Optimism currently has more than $320 million in total value locked (TVL) across its chain of 38 projects, according to industry data. Its TVL peaked at $510 million at the end of April. It currently ranks 19th in total chain value.
The number of projects launched on Optimism has risen sharply in recent months, in part due to expectations that the network was preparing to aridrop new tokens. Optimism has reported increased demand from users who want to position themselves for the OP governance token airdrop, which will occur in several phases. Almost 250,000 addresses are reported to be eligible to receive the airdrop.
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