Balancer recently launched on Polygon with a liquidity mining program that has attractive incentives. Balancer’s automated portfolio management and liquidity program is an ideal use-case for scaling solutions like Polygon. This overview will provide you with the most important information to get you started with Balancer on Polygon.

What is Polygon?

Polygon (formerly known as MATIC) aims to become a generalized scaling solution for blockchains like Ethereum. Recent spikes and congestion in the Ethereum network showed how beneficial layer 2 solutions can be. If you want to get in-depth look into what Polygon is, check out a fantastic explanation by Finematics: POLYGON (MATIC) - Ethereum's Internet Of Blockchains Explained - Layer 2

Quick start guide: How set up your Metamask for Polygon wallet and transfer funds from ETH Mainnet to Polygon

If you already use Ethereum and own an address, you can use that same address on Polygon and transfer funds to that network in a few easy steps. For example if you want to migrate some of you balancer funds to polygon, follow these steps:

  1. We assume that you use Metamask. If you are completely new, check out the official Metamask documentation here: https://metamask.io/faqs
  2. To transfer your funds, you need to use a bridge service that sends your Ethereum funds to Polygon. The best way to do that is through the official matic wallet bridge. Therefore connect your Metamask wallet using this link: https://wallet.matic.network/bridge/ (alternatively you can use the Zapper bridge over at https://zapper.fi/bridge)
  3. The transfer will take 5-10 minutes, and you need to have sufficient funds to cover the gas fees
  4. Connect your wallet at https://polygon.balancer.fi/
  5. Exchange funds or provide liquidity and enjoy low gas fees and fast transactions.

How to provide liquidity on Balancer

Balancer allows you to provide liquidity to many popular Polygon tokens. The UI is designed so that you can easily provide liquidity to funds you have access to.

There are 2 possibilities on how to provide liquidity:

  1. Single Token Investment
  2. Match the Pool Makeup

How to provide single token liquidity

Providing one-sided liquidity means that you only provide one token to a multi-token pool. Balancer will automatically exchange your provided token to the underlying assets as if you would exchange them and then provide liquidity. Note that therefore, you are charged fees, which is displayed in the GUI.

Let’s take the WMATIC/USDC/WETH/BAL pool as an example: