Moonbeam, Parity announce collaboration to port Balancer to Polkadot
Balancer’s programmable liquidity will now be deployed on the Polkadot ecosystem.
The deployment is a result of a collaboration between Moonbeam and Parity and Balancer Labs’ grant funding for exploring experimental deployments of the Balancer protocol to alternative Layer 1 blockchains.
According to an announcement released earlier in the day by Moonbeam,
“This move adds an important capability to the growing DeFi ecosystem on both Moonbeam and on Polkadot.”
Moonbeam is essentially an entry point for developers trying to build applications on Polkadot since its Ethereum compatibility features make it possible for protocols like Balancer to leverage their existing codebase to have a Polkadot-based deployment. Now, Polkadot-based assets like DOT and other parachain tokens will also be made available as ERC-20s to the instance of Balancer on Moonbeam.
With over $1.4 billion of Total Value Locked (TVL), Balancer is one of the top AMM-based decentralized exchanges (DEXs) in the world.
The development was welcomed by both crypto-communities, with Jeremy Musighi, Head of Growth at Balancer Labs, stating,
“Supporting PureStake and Parity Technologies is a great opportunity for us to explore and learn from how the Balancer protocol can benefit from the unique trade-offs of the Polkadot blockchain.”
“We welcome the opportunity to support this decentralized effort to take the first steps towards building on-chain liquidity for assets in the Polkadot ecosystem.”
In light of the persistently high gas fees on the Ethereum network, many DeFi protocols have been looking for alternative networks that are less expensive and more scalable in their current state. In fact, earlier today, SushiSwap too announced that it will be porting its platform into five additional networks, outside of Ethereum, including Moonbeam.
SushiSwap CTO Joseph Delong announced these integrations on Twitter, noting that of these additional networks, user experiences on Fantom and Binance will be more complete as they have good support for token lists whereas the others still need some work for the best end-user experience.