Balancer – the decentralized asset management platform – has announced the start of a new gas reimbursement program that will run for four weeks starting today. The Balancer community has approved 30,000 BAL tokens to be used to fund this gas reimbursement intiative.
Following a $BAL governance vote this past weekend, Balancer Exchange Gas Reimbursements are now live! We are incredibly excited to offer users a chance to try our improved exchange UI without bearing the full burden of network congestion. https://t.co/9BSE7DpYvA— Balancer Labs (@BalancerLabs) January 25, 2021
The main motivation behind this new program is to make it easy for users to try out the new Balancer exchange UI without getting hit with huge gas fees. The team estimates that these gas reimbursements could save traders on Balancer anywhere between 40% to 95% on gas costs. Balancer v1 was designed with security in mind which led to greater gas costs per transaction compared to more optimized decentralized exchanges like Uniswap.
Check out this image for a side by side comparison of Balancer’s previous and current exchange interface.
The new and improved exchange UI shows detailed order routing and gives users clear warnings regarding any price impact that they may face if they execute the transaction.
To start, the gas reimbursement program will only apply to certain swaps between the following tokens: WETH, WBTC, USDC, DAI, and BAL. Additionally, only swaps done direction through the Balancer UI will be covered under this program, swaps done through liquidity aggregators like Matcha or 1inch will not be eligible.
The hope is that these gas reimbursements make Balancer a more attractive venue for users looking to make swaps. The Balancer team plans to iterate on the reimbursement program and will likely add other tokens to the gas reimbursement program whitelist depending on the results of the initial program. Additional details of the program can be found in the Balancer forums here.
Keep up with Balancer by following their Twitter.