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
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:
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:
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: