Arbitrum Adds The DeFi Protocol Balancer To Aid Boost Liquidity And Decrease Gas Prices
Arbitrum Adds the DeFi Protocol Balancer
Balancer stated in a news statement distributed on Tuesday that the move is intended to “significantly decrease gas costs and scale liquidity.”
Arbitrum is a major scaling solution inside Ethereum's layer-2 ecosystem, and despite being a relatively new project, it has made a reputation for itself in the industry.
The exponential expansion of the DeFi industry has attracted a large number of investors, bringing the total value locked in the sector to an astounding $82 billion.
The rush of individuals entering DeFi, however, has led gas prices to skyrocket, making it impossible for small traders to form, join, and quit pools.
As a result, the possibilities of aggregating liquidity across many uniquely constituted pools are reduced.
Boosting Liquidity and Decreasing Gas Prices
Arbitrum's optimistic rollups, which increase scalability while lowering gas prices, were developed to address this issue.
By altering the consensus method, the optimistic rollups eliminate the requirement for zero-knowledge proofs. The network assumes that all transactions are valid, allowing users to intervene only if one is wrong rather than confirming all of them.
It also provides much greater transaction throughput than Ethereum while lowering gas prices to near nothing.
Through Layer-2 technology, and with a strong emphasis on user accessibility, the system provides users with a convenient, quick, and secure service.
Balancer Protocol claims that with the latest connection, it can now operate as the “ultimate flexible DEX,” and its users may trade on its app using Arbitrum.
Fernando Martinelli, Co-Founder, and CEO of Balancer Protocol stated:
“Arbitrum is a prominent L2 solution, and its specific scaling characteristics, particularly compatibility with Ethereum, have led this sector to understand that it will optimize the user experience and boost growth.
L2s have the potential to reduce Ether costs and network congestion, and we are thrilled that Arbitrum is now accessible to the Balancer ecosystem.”
Arbitrum's CEO and co-founder, Steven Goldfeder, also stated his excitement about having Balancer on board, and he feels the AMM will play a vital part in establishing a strong DeFi economy.
“We look forward to collaborating with the outstanding Balancer team to provide Arbitrum users with more efficient, flexible trading experiences,” he said.