Automated Market Maker (AMM) Balancer has launched a new pilot for a gas reimbursement program, which will test the reimbursement of gas fees for select trading paris, the team announced on Jan. 26.
- The gas reimbursement program will partially reimburse gas costs for select pairs which are directly transacted via the Balancer Exchange Proxy smart contract
- The governance community has approved 30,000 BAL for the pilot, which will run for a month from Jan. 25 to Feb. 25; swaps between WETH, WBTC, USDC, DAI, BAL are supported for the pilot
- The team says that based on previous data that the reimbursement could reach as high as 95% of costs, with 40-50% being the average
- Gas costs have been a pain point for DeFi investors, as the popularity of DEXs like Uniswap have resulted in a sharp spike in network fees; as of Jan. 26, gas costs have been averaging at approximately 108 Gwei
- Other projects have also introduced their own solutions to mitigate costs of liquidity provision, including Bancor Network (BNT), which brought a host of impermanent loss reduction features in its Bancor v2.1 update
- Loopring (LRC) has also become more popular for its virtually free and instantaneous transactions, which are provided through a zkRollup-based solution
