This proposal was authored by the Arbitrum Foundation team in collaboration with the Balancer team.
Summary
This proposal seeks community support for the deployment of Balancer V3 on Arbitrum, aligning with Arbitrum’s mission to drive a scalable and decentralized finance ecosystem. The deployment of Balancer V3 will leverage Arbitrum’s scalability and growing user base, enhancing liquidity provision and market-making efficiency, while contributing to the expansion of the Arbitrum ecosystem.
Introduction
Arbitrum is a highly efficient Ethereum Layer 2 solution that offers low-cost, high-speed transactions, ensuring Ethereum compatibility while scaling decentralized applications. As one of the most widely adopted Layer 2 solutions, Arbitrum continues to expand its ecosystem with a thriving array of DeFi protocols. Arbitrum’s commitment to scalability and developer experience has made it a key player in the Ethereum ecosystem. Deploying Balancer V3 will enhance the existing DeFi infrastructure on Arbitrum and further contribute to the network’s rapid growth and expansion.
Motivations
- Access to Arbitrum’s Expanding DeFi Ecosystem
Deploying Balancer V3 on Arbitrum One integrates the protocol into a rapidly growing DeFi ecosystem. Arbitrum’s active and engaged user base provides an ideal market for Balancer V3’s innovative liquidity pools and advanced market-making features. This integration will provide liquidity providers with more options and opportunities, helping to drive adoption of decentralized finance solutions on Arbitrum.
- Enhancing Liquidity in Arbitrum’s DeFi Ecosystem
The integration of Balancer V3 will enhance liquidity across a wide range of DeFi applications on Arbitrum. Balancer V3 offers flexible automated market-making solutions, including boosted pools, that allow liquidity providers to optimize their returns and improve the efficiency of asset swaps, lending markets, and stablecoin pools. This deployment will help grow liquidity and offer more robust financial infrastructure for Arbitrum users.
- Positioning Arbitrum as a Leading DeFi Hub
By deploying Balancer V3, Arbitrum will continue to position itself as a key hub for DeFi innovation. Balancer V3’s liquidity solutions will contribute to the development of efficient markets, helping to facilitate a range of DeFi activities including decentralized lending, yield generation, and decentralized exchanges. This positions Arbitrum as a strong and attractive platform for developers and liquidity providers seeking scalable and cost-effective solutions.
Proposal
This proposal asks the community to support the deployment of Balancer V3 on Arbitrum One. Specifically, we propose the following:
- Authorize the deployment of Balancer V3 on Arbitrum One to provide advanced liquidity solutions and market-making capabilities.
- Collaborate with the Balancer team to ensure a seamless integration and deployment that benefits the entire Arbitrum ecosystem.
Timeline and Next Steps
The deployment of Balancer V3 on Arbitrum One is expected to launch by the end of January 2025. In the coming weeks, the Arbitrum team will work closely with the Balancer team to finalize integration details, and ensure full compatibility with Arbitrum’s ecosystem.