Balancer goes live on Ethereum L2 scaling solution Optimism

Balancer has gone live on Optimism in a move aimed at improving user functionality by enhancing scalability and lowering fees.
Balancer has gone live on Optimism in a move aimed at improving user functionality by enhancing scalability and lowering fees.

Balancer, an automated market maker and decentralized finance (DeFi) protocol, has gone live on Optimism, Ethereum’s layer-2 scaling solution, in a move aimed at improving user functionality by enhancing scalability and lowering fees.

Balancer collaborated with Beethoven X, a decentralized investment platform on the Fantom Network that forked from Balancer v2, to work together to achieve the goal. Both teams are claimed to have worked together to create a decentralized exchange that will compete in the Optimism ecosystem.

The Optimism deployment, according to Balancer Labs CEO Fernando Martinelli, illustrates the firm’s belief that layer-2 scaling solutions will be beneficial in decreasing transaction prices and network congestion.

It is a layer-2 scaling solution for Ethereum that aims to make transactions faster and cheaper. Optimistic Rollups, a scaling method that runs in parallel with the main Ethereum chain, is supposed to support all decentralized apps on Ethereum.

Optimism tasting success

According to industry data, Optimism currently has approximately $320 million in total value locked (TVL) on its chain from 38 projects. In late April, its TVL surpassed $510 million. In terms of overall network value, it is now ranked 19th.

The number of projects launched on the network has risen dramatically in recent months, owing in part to expectations that the network might airdrop new tokens. Users aiming to position themselves for the OP governance token airdrop, which will occur in many phases, have noticed an increase in demand for Optimism. According to reports, almost 250,000 addresses are qualified for the airdrop.

After debuting via a community airdrop on Tuesday, the new OP token from Ethereum scaling project Optimism is down over 70%. The last trade price, assuming a total supply of 4.3 billion OP tokens, would imply a fully diluted market cap of $5.1 billion. However, such assessments can be difficult because only about 5% of the overall supply is held by investors who can trade them.

In April, when the rumors around a possible token airdrop on Optimism started getting intense, the project saw its native token price going high, as TheCoinRise reported.