Balancer starts supporting Layer 2 solution Arbitrum, expanding DeFi liquidity.

The top decentralized exchange protocol, Balancer, has launched on the Layer 2 solution Arbitrum, providing users with a cheaper and faster experience. Currently, several other protocols have also announced their launch on Arbitrum.

Balancer Values Arbitrum Compatibility

Balancer has stated that Arbitrum is a leading L2 solution known for its unique scalability features, especially its compatibility with Ethereum, which industry players recognize will optimize user experience and drive growth. Arbitrum utilizes optimistic rollup, which does not require zero-knowledge proofs like another solution, ZK Rollup, hence offering higher compatibility with Ethereum smart contracts. Balancer officials have mentioned that Arbitrum can reduce gas fees to nearly zero.

Steven Goldfeder, CEO of Offchain Labs, the company behind Arbitrum, expressed his excitement for Balancer joining Arbitrum One, and together they aim to enhance the user experience on Arbitrum.

Currently, Balancer supports Ethereum, Polygon, and Arbitrum, with a total locked value exceeding $30 billion. According to DeFi Llama data, Balancer ranks 13th. Users can transfer Ethereum funds to Arbitrum via the Asset Bridge Platform and check which platforms support Arbitrum solutions via this website, with platforms like Uniswap, SushiSwap, and Aave already online.

Furthermore, Uniswap v3 and Synthetix have adopted optimistic rollup solutions developed by another company, Optimism, with substantial funds already committed. Uniswap v3 currently has around $15 million locked on Optimism, and Synthetix has approximately 8.4 million SNX staked.