Decentralized finance (DeFi) protocol Balancer, built on Ethereum, is set to expand on Algorand.
Once launched on the Algorand blockchain, Balancer users will be able to create liquidity pools or trading pairs with any Algorand Standard Asset (ASA), Algorand COO W. Sean Ford told The Block. The Algorand-based version of Balancer is being built by Reach, an Algorand Foundation-funded project that helps build blockchain applications.
Balancer's launch on Algorand is expected in Q3 of 2021 by Reach, Ford told The Block.
Reach CEO Christopher Swenor told The Block that his team is excited about Balancer's launch on Algorand because it's the "first large-scale DeFi project to be announced being built on Reach."
Balancer is currently the fifth-largest decentralized exchange protocol by trading volumes, according to data compiled by The Block. It saw volumes of over $2 billion in March.
“We are excited to provide support to the Algorand and Reach teams via the Balancer Ecosystem Fund, and to observe how this new implementation will work and how it may grow in the future to be a source of liquidity for the Algorand ecosystem,” said Jeremy Musighi, head of growth at Balancer Labs.
After the publication of this story, Balancer Labs tweeted that it provided a $5,000 grant to Algorand "as a symbolic gesture of support" and that it has "zero involvement" in the development of the project.
"Our attention is solely focused on Ethereum and the upcoming launch of Balancer V2," said Balancer Labs.
Algorand's Ford told The Block that the firm is looking to work with more DeFi protocols in the future.
This article has been updated with Balancer Labs' tweets and amended for clarity.