Topic: ETH's fees on "De-Fi" platforms are ridiculously high (Read 1137 times)

Exactly. It's no wonder why Binance Chain is able to provide extremely low fees and blazing-fast transactions to its users. The utterly-centralized design of Binance's own blockchain network makes this possible. That's why most projects have been built on Ethereum. Competing chains are nowhere near close to Ethereum in terms of decentralization, security, and reliability. The only exception is ADA. Yet, the slow development progress from the team has left Cardano behind Ethereum in every way. The world's second-largest cryptocurrency by market cap has been able to retain its popularity in the mainstream world, even with the ridiculously high fees and slow transaction confirmation times. It'll be hard (if not impossible) to take it down anytime soon.

Nonetheless, high fees on the ETH blockchain makes "De-Fi" impractical to the average person. Competing chains like TRON, EOS, Binance Chain, and Polkadot have a huge advantage over Ethereum with their low fees. If developers would've made the same number of dApps on competing chains, it would've been possible to challenge Ethereum in the long run. But the lack of a solid ecosystem on alternative smart contract platforms, forces people to use Ethereum in order to interact with their favorite decentralized apps. If this keeps up, Ethereum could become a "monopoly" in the decentralized crypto/Blockchain space. At least, upcoming ETH upgrades will alleviate the high fee issue for a while. But we need an ample variety of dApps on other smart contract platforms in order to ramp up the competition. People could exploit "De-Fi's" true potential using a platform that's economically viable for day-to-day payments. Time will tell us what will lie ahead with "De-Fi's" prominence in the mainstream world. Just my opinion

If you are a retail investor with small amounts of money investing into risky or even not so risky stuff and hope to make a profit, do not use ethereum blockchain based products, those 20-30 dollar range network fee's are totally useless and not worthy, why would I want to spend that much money just to pay the miners? That makes no sense and if super rich people are willing to keep paying for it, they may continue however I want but I will not be part of it.

Go take a look at either tron, or eos or best one is BSC which is binance, they have a lot of new yield farming projects everyday and some of them are awesome, I have friends making 100% in the past 1 month using BSC and the payment is rarely over 1 dollars, it is usually at around 20 cents and even less levels, I once paid 1.5 cents for confirming whereas ethereum was like 4 dollars. Move to other places and ethereum will have to go down to attract you back.

Binance Chain is a lot more centralized that projects will be more skeptical to move there. If any Ethereum killer that best suited to turn to I think it will be ADA. But seeing there is also a platform like Polkadot, they should first try it there if it fits there.

There had been several projects that turn to Binance chain in the past but they are just the ones who wanted to be listed on the main Binance.com exchange. Now they are nowhere to be found.

All defi projects are gradually turning to Binance which has very low shipping costs, if it continues then Ethereum will be abandoned, this is what causes many Ethereum transactions to stall and some miners are profitable at this point, so the exact solution is that all defi projects will be better move to the Binance network, at least it will make the transaction go well for everyone's distribution of funds ..

i will check and reply to you. for the first view, they look good, transparent smart contract and simple business model

me too, i'm watching for curve - based projects. just now researching interesting one stablecoin dex - xsigma. maybe u know smth about them ?

The hype that was quite high at the end of 2020 regarding Defi finally exploded earlier this year with a fantastic increase. although many people put most of their allocations on Defi, I myself don't want to be exposed to the hype that is at risk. The category definition is still new and at least 2 years to prove against the market fundamentally. I made an investment, but in nominal terms it's not that big while waiting for positive news about Defi. had also Sec conducted an investigation

yes its true , that why i just quited decentralized game recently , its totaly worth of money, but since defi on fire, its also affected on my game. synchroning to smart contract almost 20 bucks . i guess 2022 i will comeback again , when eth 2.0 impletement already.

If you are a small retail investor and want to use eth dapps like uniswap and you want to trade your tokens you will spend like $25 for a complete transaction that fees will just go to eth miners who process transactions with eth blockhain and they are the one who benefit the most on this while users are crying in fees.   

besides seems TRON will give nice opportunities in future but for now ETH is really the best one as for me... nevertheless i consider for work only eth based dex-es

yeah that's sure - fees are extremely high, but nevertheless eth is the most technically ready for defi/dex projects launch... 

It's scary, I noticed that gas fee are fair in coinomi wallet than trust wallet, I was trying to send 11$ USDT to binance exchange and I was charge 9$ in trust wallet but when I used coinomi wallet instantly I was able to choose between low mid and high fee, 4$ for sending USDT, craze, isn't it?

The Ethereum gas fee is very high because there are some platforms using the network, such as Uniswap.
They use very high gas to reduce the waiting time of the transaction, and people who using low gas fee will have to wait more.
I think we can use other blockchain such as Tron to avoid high fee, it has TRC-20 token.

I don't know how long this will continue, over time several bounty projects have decided to switch networks to BNB, because gas costs are too high, some prize projects have experienced delays for distribution using ERC20, of course it is very regrettable because of this problem, causing ETH growth is getting more and more unclear and I really hope that this problem will end with no more exorbitant gas costs and ultimately improve ETH growth itself ..

That gives very big impact to the swap and dex. The liquidity gets decreased so hard as people are moving their money to the centralized exchange site.
It needs a very big fees to trade on uniswap or another swap service which has been using two or more transactions in single swap

At least it's literally getting decreased for every wei, not like a month ago where you have to paid $20 for a regular speed transaction which is ridiculous to be honest. Since De-Fi hype is literally going down right now but the impact of the hype is not yet shown to us.

I don't think it's a huge problem anymore, yes it is still expensive but compared to last month, it has really big gap between these two.

Since mid-2020 Ethereum gas price has been rising indefinitely, even though the rise began the year earlier. What used to be 24-36gwei is now 300+gwei. Analysts dictate that the cause behind this hike is due to yield-farming and undertaking of complex financial positions.

The gas limit, being 150,000, is quite affordable to swap for smart contracts, and yet the struggle and volume clogging up the first blocks caused gas fees to surge. Usually, swaps cost around $25 and $40 USD, but more complex smart contracts require transactions with a larger gas price. Many DeFi applications such as Uniswap, Curve, Compound and more use yield-farming to initiate complex loans, trades and collateral to profit instantaneously.

Uniswap and Tether are known to be the most active contracts, and they have spent 16,000 ETH on gas in August 2020. Hence, transactions may get quite costly. So this kind of transactions occurs repetitively and piles up volumes.

Exactly. The greater the demand for "De-Fi" platforms, the higher the fees on the ETH blockchain will be. This can easily be solved by scaling Ethereum. But this process could take a long time. As long as fees remain high, people will have no use for "De-Fi" on the ETH blockchain. It becomes impractical to pay a high fee every time you want to interact with a decentralized application. While there are second-layer scalability solutions available to remediate the high-fee issue, most developers haven't adopted it yet.

Fortunately, there are a wide variety of smart contract platforms on the market that are cheaper and faster to use than Ethereum itself. The only problem is that most popular dApps are only available on ETH. This forces people to use ETH regardless of its high fees and slow transaction confirmation times. If competing smart contract platforms had the same (or comparable) dApps as Ethereum, they would've gained traction by now. As long as new dApps and tokens are built on ETH, adoption on other platforms will be low. At least, there's hope for Ethereum with the upcoming "ETH 2.0" network upgrade. Just my thoughts

All this hype around DeFi projects has one huge drawback. Transactions on the ETH network are now very slow and very expensive. Nowadays, making an Ethereum transaction turns into a real problem. But it is good news that the crypto industry is rapidly moving forward.

Same. ETH 2.0 will give Ethereum the boost it needs for widespread adoption in the mainstream world. But the upgrade alone won't be enough for fees to remain low for the foreseeable future. Eventually, the Ethereum blockchain is going to need to adopt Sharding and other scalability techniques to stay ahead in the game. For "De-Fi" to work as intended, fees need to stay in their all-time-lows. Nobody is going to pay ridiculously high fees just to make a deposit or withdrawal at a decentralized lending platform. The same thing applies to decentralized gambling, and decentralized exchanges. If only ETH competitors had good dApps to choose from, they would've been a better choice for "De-Fi". They may have cheaper fees and faster transaction confirmation times, but the lack of dApps forces people to stay on the ETH blockchain. Everything will depend on how developers are willing to create decentralized applications (dApps) on competing smart contract platforms.

Nonetheless, time will tell us if ETH fees will continue to soar or go all the way down the drain. It's most likely fees will decline in the future with upcoming network upgrades. Despite ETH's high fees, it's still cheaper to use than Bitcoin itself. Once fees are reduced, "De-Fi" platforms on ETH will become great again. In the meantime, it's best to wait until fees decline in order to make a transaction on the ETH blockchain. This requires a lot of patience, but at least, it's worth it. Just my thoughts