Automated market maker and decentralized finance (DeFi) protocol Balancer has officially deployed on Optimism, the highly touted Ethereum layer-2 scaling solution, in a move designed to enhance user functionality by increasing scalability and reducing fees.
Balancer’s Optimism deployment was carried out in conjunction with Beethoven X, a decentralized investment platform on the Fantom Network that forked from Balancer v2. Together, both teams are said to have developed a decentralized exchange that is set to compete in the Optimism ecosystem.
Balancer Labs CEO Fernando Martinelli said his project’s Optimism deployment reflects the belief that layer-2 scaling solutions will be effective in reducing transaction fees and network congestion.
Currently, Optimism has over $320 million in total value locked (TVL) on its chain from 38 projects,to industry data. Its TVL peaked north of $510 million in late April. It currently ranks 19th in overall network value.
Like other DeFi-focused protocols, Optimism has seen its network activity decline considerably over the past two months. Source: DeFiLlama
The number of projects launching on Optimism has increased considerably in recent months, partly due to expectations that the network was preparing to. Optimism has reported a surge in demand from users wanting to position themselves for the , which will occur in multiple phases. It has been reported that nearly 250,000 addresses are eligible to receive the airdrop.