The important Decentralized Finance (DeFi) project Balancer will soon be available at Ethereum competitor NEAR.
What does this mean for DeFi?
NEARis a smart contract platform that just launched its mainnet last week and wants to support DeFi projects. In addition, the NEAR team wants to be cheaper and faster than the Ethereum network.
In contrast, Balancer is an automated market maker that works in a similar way to the decentralized exchange (DEX) Uniswap. Balancer also wants to enable users to build their own DeFi products and services.
What does NEAR want to achieve for the DeFi protocol?
Basically, the NEAR protocol wants to help projects such as balancers with scaling. Jeremy Musighi, Head of Growth at Balancer Labs, hopes The merger creates synergy effects:
We continue to focus on developing Balancer on Ethereum. We want to use NEAR to test our DeFi products in a cost-effective environment.
With the help of an Ethereum near bridge, Ethereum applications should be able to use the advantages of the NEAR network without having to completely rebuild their code base. This means that Balancer does not have to set up a new product, but can transfer its existing product to a cost-effective and fast blockchain.