Topic: ETH's fees on "De-Fi" platforms are ridiculously high (Read 1119 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

Now the fees are ridiculous. The amount to withdrew bitcoin from binance is 10$ for one transaction. It mean, if I had transfer of 20$.I have to pay 10$ as a fee for it. The same was encounter for the ethereum. May gas fee leads to the confused state of the traders. Who will ready to pay hugh fee for less transaction. In the case of tokens, the fee will be unacceptable one.

I hope that Ethereum 2.0 will do something about the high fees problem. I am not sure about whether it can decrease the fees at a high rate. But I believe that it will be very helpful about it. I really missed the low fees. Nobody would like to pay high fees for any transfer they make.

The positive effects of the ETH 2.0 upgrade won't last for long, as "De-Fi" platforms experience ever-increasing demand from people in the mainstream world. Eventually, fees will rise at a fast pace because of too many people interacting on the Ethereum blockchain. Both PoS and Sharding help to reduce the burden on the network. But I believe something else is needed in order to maintain fees in their lows. I think second-layer scalability solutions will be the future of Ethereum, as dApp developers adopt them more thoroughly. "De-Fi" platforms can enjoy dirt cheap fees alongside blazing-fast transactions by making use of a Layer-Two scalability solution such as the OMG Network, and even Zk-Sync. Regardless of what happens on the main Ethereum blockchain, "De-Fi" platforms using Layer-Two tech will be able to maintain unparalleled performance and reduced costs. This will drive Ethereum's adoption all the way to the moon in a blink of an eye.

In the meantime, we're going to have to deal with high fees one way or another. You can either pay a low fee on the Ethereum blockchain when interacting with a "De-Fi" platform, or simply switch to another blockchain (like TRON, EOS, BNB, and many more). With so many alternatives available out there on the market, there's a choice for everyone. The only issue is that most dApps available on the ETH blockchain are not found elsewhere. This will force people to continue using ETH, even if other platforms have cheaper fees and faster transactions. Hopefully, dApp developers would "mirror" their creations on other platforms in order to give people a choice. Just my opinion

The fees are killing. I make profit, I spend that on fees, this has kept me away from Uniswap for some time now, but I am going back to hit on uniswap if I can see good coins. I tried to switch to Binance Smartchain, but uniswap has gotten more liquidity and more pairs.

As eth 2.0 mainnet launch is now just few days away im quite hopeful that high fee and slow transactions will become story of the past and then will come real adoption and real innovation in crypto sphere.

Transaction fees will decrease when Ethereum 2.0 is released. There will be more staking people and that will make processing the blocks faster and with a lower fee. Even we won't be afraid of network congestion because there are too many resources handling blocks in the next month.
This upgrade of Ethereum will be able to make the Defi project emerge again. The traders will make money easily on Uniswap without having to worry about fee and token transfer time.

That's certainly true, mate. The next iteration of the Ethereum blockchain, will certainly improve the fee structure at every level. While the reduction in fees will be noticeable in the short term, additional work is needed in order to keep it that way. Eventually, the Ethereum blockchain will become clogged up as more people join the "De-Fi" craze. Dapp developers are going to need to consider migrating to second-layer solutions in order to maintain fees at their lowest level. It's a collaborative effort between the Ethereum project developers, dApp developers, and individuals as a whole. Otherwise, fees will continue to soar, making Ethereum no different than Bitcoin itself.

With high fees, "De-Fi" will no longer be a viable option for those looking into "decentralized banking". The "De-Fi" industry will only be related to the wealthy, as they'll be the ones capable of paying exorbitant fees on the Blockchain. Luckily, there are several competing blockchain networks with greater transaction capacity than Ethereum. Some say that Binance Smart Chain (powered by BNB) and EOS are Ethereum's top contenders in crypto land. Binance's own blockchain network enjoys of unparalleled performance, while being compatible with ETH-based smart contracts. There are many promising "De-Fi" apps on the BNB blockchain right now. They're certainly much faster and cheaper to use than their ETH counterparts. Ultimately, people will decide whenever they'd want to pay high fees on a blockchain network or not. As long as people choose to pay high fees on the ETH blockchain, "De-Fi" won't be going anywhere. Just my opinion

Every update on blockchain more specifically ethereum as I see kinda slow and need to undergo such complicated process for example ETH 2.0 need to reach some treshold of eth staked before launched and many more. I'm maybe expecting ETH fee to be solved around the start of next year. Even ETH2.0 is not gonna come anytime soon its frustating.

I am sure with this new eth 2.0 system we are going to see much better fee structure and thanks to that there will be a lot better dex platforms that would be used without a problem. I don't know how they are going to deal with it but 2.0 is not something that only focuses on going from proof of work to proof of stake, that is just one part of it, the other parts probably consists of some fee restructure as well because if it doesn't that is going to have a bit of a problem.

However at the end of the day it is us that decide on the fees and the quicker we want to move it the more fee we pay, if all of people who use gas suddenly decide to spend a lot less on fee's we can drop it all together. But everyone wants to pay one gwei higher than others and that keeps making it higher and higher.

I hope so, with this crazy fee maybe the longer the popularity of ETH will decline and it will have a negative impact on it. I hope with ETH 2 the shortage of ETH will be corrected, especially the cost of fee.

When an innovation arrives and people spread good news about that system, more and more people tend to get the first mover advantage. When that happens, systems might get overloaded and hence the performance might get reduced. To overcome such scenarios there should be a mechanism to control the traffic to a manageable level and increasing the transaction fees is once such method of doing so. That will make sure that the users who are willing to pay a considerable amount as fees get a higher priority while ensuring the load on the system does not rise critically.

Will the launch of eth 2.0 reduce the current fees in DeFi platform? Is there some statement coming from eth that they will rectify this increasing gas fees? But for other eth tokens to transfer from MEW to exchange, the fees are somewhat low. So I think, this depend on the eth token you are trading with and what platform you are using.

Stay of zksync. Funds goes missing: https://zkscan.io/transactions/sync-tx:65fd64eaf982104b27b2d018c37ae8e8b7df47398350d8aabc763062326d493d

Check on receiving address show the funds was never received.

"De-Fi" is extremely risky right now. I wouldn't advice anyone to invest into ETH-based "De-Fi" platforms until the blockchain becomes scalable. Fees are ridiculously high, making "De-Fi" suitable only for wealthy people. High fees goes against crypto/Blockchain tech's original promise of "financial inclusion to anyone". If we want to see "De-Fi's" true potential, the Blockchain needs to scale to millions of users worldwide. Otherwise, it'll be nothing more than "Banking 2.0". At least, "De-Fi" platforms are usable on competing blockchain networks such as Tron and EOS. While the number of dApps on these blockchains are extremely limited, the lack of fees make them extremely convenient for the "De-Fi" industry. Developers might as well migrate to these chains (TRX and EOS) if Ethereum is unable to meet the demands of everyday people.

As a short-term solution for reducing fees on the ETH blockchain, "De-Fi" app developers could migrate to "Layer-Two" or "off-chain" scaling solutions. We already have OMG and ZKSync so it's possible to enjoy "De-Fi" on Ethereum without paying exorbitant fees. Everything will depend on developer's adoption of said scalability solutions.

In the meantime, there's nothing we can do other than wait until fees become lower on the ETH blockchain. I'm hoping that the "De-Fi" craze ends for everything to head back to normal. Holding stablecoins on smart contracts until fees are reduced, shouldn't be a problem as funds are secure against malicious actors (as long as you secure your private key and there are no network disruptions). Let's hope the high fee issue is solved in the least time possible, in order to take advantage of "De-Fi's" true benefits against traditional banking. Just my thoughts

You'll often find that there are a handful of wallets that cover the transaction fees for users.

I know FalconSwap does, for OpenPredict at least.

For most transactions, you can actually cut the fees down slightly by sending it using slightly lower than the GWEI recommended by ETH gas station, even 10% or so should be confirmed fast.

Likewise, you can cut fees down on Uniswap by skipping WETH as an intermediary, since that bumps the transaction right up (where possible).

I have a miner friend who has a decent sized business and a lot of rigs, he talked about how he is doing a lot better than he ever did and certainly a lot better than a year ago for example. Ethereum was around 80 dollars for a while and that really wasn't something they were really profiting, it was a horrible moment for them but he kept mining because he believed eth would eventually come back anyway, and now he is living above the clouds, making great returns.

Regular mining calculations can't see this because it usually calculates based on the rewards miners get but not the fee, this new thing made a whole new reason why you should be a miner and make a profit. Obviously if you start now you could be a little too late, still could make a profit obviously but not as much as people used to did and we don't know the future neither.

Now there is a slight decrease in the gas fee, even 325 Gwei transactions will be getting priority in the confirmation and it seems the problem won't solve soon since Uniswap airdropped 1 Billion UNI tokens which the current hot topic in the crypto market which will increase the fee further since people are looking to cash out the tokens with high gas fee because the token has got good value.

Perhaps there is still a little time left and we will wait for the Ethereum 2.0 update, after which the situation with high fees in the Ethereum network should change. In addition, today most of the users themselves offer to pay a high commission, if only their transaction was carried out in the first place.

eth network is still pretty messed up till now thats why your transaction moved slow but the good news is that it arrived .

 just imagine if you use lower fees that what you have used maybe your transaction will be forgoten to proccess by the miners   .  you cant say that miners are only getting rich with this because miners them selves do also pay for thier mining maintenance and with the number of eth related transactions  they probably experiencing issues too .

I'm experiencing some delays with my transaction and it's annoying my gas fee was already high that cost me more ether than usual. I followed my wallet proposed safe gas fee which is 550 Gwei at that time. but still the transaction was confirmed late, Imagine it was already 550 Gwei but still it was confirmed late it sucks, I hope this problem will solve asap because it's unfair only the miners are getting rich in this kind of set up.      

You have a good point. Really it's true fact, the fee of Eth in many exchange had raised a lot. The buyer in localcrypto exchange will get 35% below the Eth which he had purchased .Localcrypto is good exchange from my knowledge ,I was using this over 6 months of period. I think, same was occurred in De-Fi.

I believe that there are times when eth gets to this level and eventually it dies down but the great thing about eth is that it is a lot more flexible than bitcoin and eventually there will be a recovery for this as well, ethereum team will find a way to make this go away too and make the fee's lower as well. They are very user friendly and not miner friendly. Plus miners are making the last money they are making right now, over time we are going towards proof of stake which means holders will make this money and it would be a lot more beneficial for everyone involved.

The only thing they have to realize is that mining power is a lot more important and makes things faster, if we are in this much trouble with miners, how are we going to handle it with staking?

In the coming months I hope to see ETH come down in value. The team in ETH are not serious to tackle this high gas fee and it's painful to see.

If we take a look into this article https://cointelegraph.com/news/don-t-just-blame-defi-for-paying-high-eth-gas-fees, almost everything had put blame into DeFi platforms.
The huge market demand for these DeFi projects triggers a sudden change on gas fees and isn't really favourable seeing it keeping high. Of course, fees really matters and that what we care this time. Because of this will continue to increase I'm afraid that investors and traders will no longer use ETH but rather to choose other platform or they might turn back to Bitcoin.

Hello yes but this is due to the increased activity that comes with it so overall its great! Anyone here have a look at fiscus.fyi yet? www.fiscus.fyi

and many more not just uniswap and all the transaction made from these dapps all put together it will be humongous. Ethereum surely need solution and maybe lightning network eth version or such?
I don't know whether you're being sarcastic or not but i read article from coindesk it says that the fee right now actually highest fee since 2015

Today was my first transaction with a gas price of 1000 gwei, I love the Ethereum blockchain, I wonder if the price will be even higher ?

Ethereum’s Pending Transactions Jump 30% After Uniswap’s Token Claim Begins
https://www.coindesk.com/ethereum-transactions-surge-uniswap-token


Not exactly a surprise by now.
It is also a clear signal that DeFi is not slowing down on Ethereum network, and neither are the fees.

Well ethereum is selected by majority of dapps because it's just reliable and convenient but seeing that the fee has significantly increased guess it's not the best choice anymore but I'm sure most of developers still settle using Ethereum instead of using other platform because a big chance this fee problem gonna be solved in the future. Though hopefully there's real competition to eth in terms of dapp.

Trading on Uni swaps is more convenient for everyone as they can be bought in bulk without losing too much price. The exchange also has a liquidity pool for every token traded on it. The liquidity pools are profitable for individuals to bet and help prevent slippage for those involved in trading. That's the great feature of Uniswap.
The problem is that the ethereum network is too heavy, the wallet has too many competing transactions to be confirmed faster, thus increasing transaction fees.

Ethereum gas fee is on the highest state currently i think, the safe low gas is 500+ gwei, the average is 700 gwei !!
This is very insane, we cannot send coins or tokens anymore if we don't have eth coin worth $5 for gas fee.
The one that causing the very high gas on Ethereum network is the uniswap platforms.

that's the point mate, so miner confirmation on high fee transaction that will be their priority ? so its why many transaction in uniswap use high gas gwei , cause trader didnt want miss the best price to get. i am agree with your describtion about chanell , and its suitable with current condition.

yes its have different platform , but in defi there are much transaction every minutes and it did in the same time. like a channel , with minimum capacity but used by much user so only transaction that used high fee will allowed to used this channel. isn't it miner will take trx with high fee first ??
and it will be the reason

It's true that high fees would render a technology nobody is actually using to decentralize their finances even less valuable. I think most DeFiers shrug off the fact that their investments are 99% speculative (as opposed to the industry standard of 90-95%) as easily as they shrug off high gas fees being an impediment to adaption. They don't really care about actual usership; only keeping the hype going to lure in new people to sell to later.

Obviously being more expensive to transact than BTC is stifling for the entire network (not just DeFi), but if you are only trading high-risk, pump-n-dump tokens on an exchange then you never have to personally feel the effects of high gas fees, and it doesn't weigh into your assessment of the value of what you are trading. (which is already likely to be zero-value BS anyway)

I think ethereum and DeFi network transactions are not the same they have different platforms, whereas if ethereum has very high gas costs then it is due to the influence of the density of transactions and the high price of ethereum on the exchange, so far what I know is like that.

I learnt that the reason we've had the gas fee escalated to this point is because of Defi projects. Yield farming which is a product of decentralized finance has increased the number of transactions in the ethereum blockchain and since the blockchain is congested, higher gas fee becomes the order of the day.

Defi projects are so much trending nowadays and lots of investors were attracted to it. The high fees which is likely 100$ is just a penny to them. And because of that the transaction fees on Ethereum network are becoming ridiculously high.

Agree. Fees have been extremely high a couple of weeks ago. Luckily, there has been a reduction in network activity, resulting in reduced fees. I can now withdraw my DAI from Compound for only $20 (in USD). It's still a bit high, but affordable to pay for the average person participating in "De-Fi" platforms. ETH needs to scale urgently in order to maintain adoption of such platforms in the mainstream world. Otherwise, people wouldn't want to use "De-Fi" on top of traditional banking. With high fees, making profit through lending becomes widely unfeasible. With ETH's current situation, developers might migrate to alternative smart contract platforms like Tron and EOS. After all, these contenders of the ETH blockchain are extremely fast and dirt cheap to use for daily payments. Using "De-Fi" platforms on these blockchain networks becomes feasible. But somehow, developers have stayed on the Ethereum blockchain after all these years. I guess that decentralization goes above high fees and slow transaction confirmation times.

Nonetheless, time will tell us if "De-Fi" will be able to live up to the task with high fees on the Blockchain. No one serious enough about their money will use "De-Fi" on top of traditional banking. It's more experimental grounds than anything else. Unless scaling issues are fixed, I don't see this going anywhere. "De-Fi" may turn out to be an idea that will slowly fade into oblivion. Just my opinion

It's the gas that is getting too high in price. It's all because of the DeFi hype that the network is getting so congested.
But lately many DeFi projects are doing exit scams which is making the market very unstable for DeFi tokens.
I think we should wait for the DeFi hype to settle and the transaction fees to reduce.
If you have really invested in a potential DeFi project then you need not worry but wait.
Otherwise it might be a trouble since people are already in a panic due to the recent exit scams of shit DeFi tokens.

It is not easy to migrate from one Blockchain to another and then to reverse this after a few months. I would have still considered it, if ERC-677 was a tried and tested platform. But that is not the case, as it is relatively new. I first heard about it in 2018, and have never used the platform to trade or store any of the tokens. I guess very few of the users here in Bitcointalk may have experience with ERC-677.

Two of the alternatives people are recommending are EOS and Tron, there are already DeFi in the Tron and they are going to get a slice in the market of these DeFi projects, Tron's fee is very low at 1 cent even if you send a big amount, they are a big challenge now for Ethereum's leadership in the DeFi market.

Everything is relative. The high fees on the Ethereum network are inconvenient for everyone, including me. However, you need to understand that this is a matter of habit. We are accustomed to the fact that on the Ether network there are always low fees, while on the Bitcoin network, they could be both low and high. Miners, for example, are, on the contrary, happy with this outcome of events, because their profits have increased. This is a blockchain and it has exactly these costs. I don't think anything can be done about it. Those who are not satisfied with high commissions, like me, will be forced to adapt or switch to another blockchain. One way or another, this is a guarantee of development.

That's hilarious! how in the world can they make such a huge percentage of transaction fees? I mean, It doesn't make any sense at all. too high my friends. I think if you can find some way like converting it to any other cryptocurrency before transferring it to your main account that would save your day. because that's too much for a fees and day trading would not make much money from them if they won't make any changes to this problem.

I would prefer Stellar Lumens (XLM) blockchain than TRON (TRX) in my opinion. Fees are very tiny plus the transaction speed is unquestionable. This is the only downside of DeFi right now. If they cannot address this ridiculous high gas fees in the DeFi space, there is a big chance that this industry won't last long unless they are moving to another blockchain like TRX. As much as I liked TRX's blockchain, my gut feeling is on Stellar Lumens blockchain.

With all the reaction on High ethereum transaction fee from Defi, there is still less adoption of Defi on other blockchain. Some of the Defi projects that plan to move to their platform or new blockchain are delaying because of the price movement as project on ethereum. Tron tried to attract traction with recent dump on ethereum but didnt last a week.

The resolution would be if the DeFi tokens migrate to the new ERC 677 standard, that is used by Chainlink and XDAI. ERC 677 allows staking and the fees for sending tokens are much lower. This would solve the problem until Ethereum 2.0 comes with more scalable blockchain .

Hopefuly, we have not only ETH for dapps. Why people are ignoring EOS with much higher TPS? I decide to buy more eos inside my ownr wallet after this defi hype begun

Actually i agree with diskodasa. I also think this will trap small investors already invested in DeFi projects because of too high DeFi fees, and if DeFi volume / transactions keeps increasing on Ethereum network then only large investors can afford to use it as these DeFi fees are still small costs too them. Also shady developers of shady token projects will have zero problem with paying a $100 DeFi fee, to exit-scam their project.

Small traders / investors users on the other hand will start switching to other platforms / other cryptocurrencies. DeFi fees seem to rise exponentially and should not be confused with gas fee.
I would not be surprised to see DeFi fees increase with a factor of 2 or 3, if DeFi volume keeps getting higher.

There is currently no benefit to trading on Uniswap. Uniswap's biggest problem is transaction fees. If you have to pay a fee of 10 to 15 dollars per transaction So it will harm you and not benefit you. It is better to use another platform.

This is like the shittiest justification I have seen. As far as I know, a majority of those who invest in the DeFi projects are small and medium sized investors. Do you want to limit the DeFi projects just for the uber-rich? And also, what makes you think that the rich may not complain about the ultra-high transaction fee? And do you guarantee that the coins will go up by 2x or 3x, as you have written. In such case people would not bother much about the fee. Seriously, some of the newbs in this forum seems to be suffering from "foot in mouth disease".

This is obviously one of the main options.
As trader you also should understand that high fees are that high only because of incredible defi demand at the moment - that exact demand gives huge boost to some alt's price and thus your trading can be profitable in the first place.
But that comes in with a price and you surely can switch to Tron or other blockchain.
I've decided to hold my funds and wait for things to settle down / or for ethereum to be updated

Its true. Scaling gas fee should have been the priority first before going to any additional feature. Due to this, Ive been using different blockchain for now until gas fee goes back to a little bit lowered. A 30 to 100$ gas fee is unacceptable. If eth wanted their user to stay then fixed this. Cause a lot of complained has been observed. If that includes tapping layer 2 solution then si be it.

In general, the trend of investing in DeFi projects is attracting a lot of big investors, so the $100 fee is probably a small thing for them.

Also, those coins are very easy to increase in price and can be x2 or x3 in just a short time so that is enough for them to make a huge profit. I hope that Ethereum 2.0 will fix this problem soon as the high gas fees also make me feel very uncomfortable when trading.

I know this too. So many ethereums have been sending into the one transaction and I suspect if that was the stolen amount by investors. This makes people can't go out from their lost as the scammers have been taking all of their ethereum.

The network is not so crowded right now. Less number of tx means the block can processing the tx asap.

This will make people didn't need to put more fees to make it will be included in the next block.

$100 fee is really high, it's way bigger than Ethereum's network fee, so what's the reason for that? Must be because of some specific DeFi mechanisms, right? But regardless, some people would still be using DeFi right now, if they put thousands of dollars, and expect quick returns, $100 isn't a big fee for them. Also, there's no adoption of DeFi in real world anyway, right now it's just a toy for crypto enthusiast to make high risk investments. No one in real life is putting their money into DeFi instead of traditional funds.

That sucks. If it takes a long time for the ETH blockchain to scale, I don't see "De-Fi" platforms getting mainstream adoption at all because of the ridiculously high fees. Fortunately, there are "Layer-Two" scaling solutions on the ETH blockchain that could remedy the issue. But that up to dApp developers to migrate their "De-Fi" platforms from the main ETH blockchain to a "Layer-Two" scaling solution such as OMG or ZkSync. There's even a Lightning Network version on the ETH blockchain called the "Raiden Network". Still, these solutions are far from being stable and easy enough for the average person to understand.

I believe that if fees continue to rise on the ETH blockchain, competitors like TRON and EOS will take the lead. I know that the number of "De-Fi" apps on these smart contract platforms are extremely limited. But if developers decide to build their own solutions on both TRON and EOS, high fees will no longer be an issue. After all, these blockchain networks' fees are completely free (especially EOS). Anyone will be able to use "De-Fi" platforms without worrying about paying high fees just to make a deposit or a withdrawal. I'd wish that Compound.finance and Aave were available on TRON or EOS. It would make my life much easier. There's nothing we can do right now, expect to wait until ETH fees become cheaper or dApp developers migrate to another blockchain network or "Layer-Two" scaling solution. Just my thoughts

It's bound to happen, but I don't know if Defi platforms are going to switch to a Layer Two solutions. It should be Ethereum who need to adjust, scale or be obsolete, otherwise traders will have to shoulder the huge fees and in the long run, it will not be good for the industry. So Ethereum developers needs to work their butt off to include scaling in their Eth2.0 release.

That was when gas fee was more than 500 gwei right? Right now it is still high but 100 gwei only,,, I always think it is better to wait for times like this. but to spend more than 10% of your transaction of a few hundred dollars as miner fee? Impossible for me to ever do that.

The price or fee has dropped significantly perhaps because of panic due to some failing or exit scam defi projects, resulting in reduction in the number of transactions and also the fee due to relief in the congestion of the ethereum network.

There is a popular opinion that Defi projects are the reason we have a massive increase in the gas fee of ethereum protocol. There's little that could be done to reduce the cost of the gas unless the ethereum 2.0 project is effective. If this increase continues there's a high tendency of projects moving out of the ethereum platform.

Well, the fee started scaling when the Defi hype started, it happens every time there's hype, the ETH network gets clogged. I avoided transacting using ETH platform since the hype started. This will hurt small traders a lot.

Actually it is all coin that use Blockchain ETH has increasing its fee. A few day ago, I tried to send USDT to an exchange and you know what the fee that I have to spend was $6 that I think it is still high even before than that the fee was $20 per one transaction, it is getting horrible time by time.

DeFi project has broken the ETH, I think sooner or later there will be many user who leave this coin and move to another coin. Unless they have to make some improvement to avoid this thing, because as you may know fee transaction is one of the factors where these coins can be used by many people.

Just let your assets sit there for a while. Wait for the defi bubble to pop up and people start getting rekt everywhere, and then the fees might comes down again. Use another coin/token to transfer your asset to exchanges. In short: don't use ETH right now.

Last week i wanted to swap around 0.5 eth to USDT through uniswap and the fee was about 0.08 Eth , that's crazy, I dont know why ehtereum is such a popular platform for dapps and Defi and I dont think it worth it to have a swap like that unless it's necessary, I hope ETH 2 solve this thing .

The fact is these DeFi projects harms the Ethereum ecosystem we are ok without these DeFi projects several months ago, some traders and investors are now turning to Tron and other coins or tokens with much lower fees to offer, there are also DeFi on Tron those DeFi supporters might transfer because of Ethereum's excessive fees

The reason for the fee being so high is because of the increase number of transaction on ETH blockchain. This is mainly because of the hype in DeFi. As soon as the bubble burst (which will happen soon) the fee will go down.

None of us are here to pay fees like banks charge us, people will soon realise the same and they will start moving out, it is just a matter of time.

DeFi project hypes will most likely end by the time Eth 2.0 is implemented just like how ICO ends because of too many scams being created. There's really nothing we can do right now but wait, leave ETH for now, or use centralized exchanges that acceps DeFi projects. But to be honest, this fees are getting too absurd. It's not only affecting DeFi but other ERC-20 tokens too.

My thoughts, you will need ETH 2.0 phase 1 & 2 for scaling with sharding. Currently phase 0 (PoS) is not even implemented. I bet phase 1 & 2 will get delayed a few times and will take a few years.
Maybe with luck ETH 2.0 Phase 1 takes place in 2022.

Link : https://consensys.net/knowledge-base/ethereum-2/faq/

Which means it takes years before the network congestion and high utilization (95%) can be fixed.
Off Chain outsourcing is not the answer, that just increase the risk that users and developers will leave Ethereum all together for another decentralized platform.

Ethereum 2.0 is already under development which will serve two basic functions:
1) Resolution of Scaling Issues through Sharding etc.
2) Change of algorithm from pow to pos.
Testnet is already live while mainnet is getting ready so I think once the transition to Eth 2.0 happens hopefully in couple more months all the issues will be resolved. Lets stay positive and bear this annoying fee.

I am yet to use any of these DeFi platforms and hence i am not aware of the transaction charges but if the charges are above $100 then there is no way you will see massive adoption as these are ridiculous charges to make a transactions and think about the third world countries adopting these platforms if the fees are high, when it comes to normal ETH transactions i am spending around $10 to make a transaction which is ridiculous.

The fee is too much I think. It's ridiculous. Yesterday I tried to swap some UNIFI token on Uniswap it was showing me 45$ in fee for only 150$ of token transaction. How a trader will make a profit if he has to give more than 20% as a fee. I am fed up with ethereum blockchain and fees. I suggest Tron blockchain over ETH now. 100 times better than ETH in many prospects.

Last time I've checked, fees in ETH (gas) for withdrawing tokens from a "De-Fi" platform were well above $100 (in USD). I have around $110 worth of DAI sitting on Compound without being able to withdraw it because of the ridiculously high fees on the ETH blockchain. If the trends continues, "De-Fi's" adoption in the mainstream world will stifle. No one will want to use "De-Fi" platforms for borrowing or lending money if costs aren't negligible. Scaling towards ETH 2.0 is an option, but it may take quite some time before we're able to experience a steep reduction in fees. There are alternative smart contract platforms like EOS and TRON, but the number of "De-Fi" platforms on them are extremely limited.

As of late, Vitalik has been patronizing "second layer" scaling solutions in order to remediate the issue in the short term. It'll be up to "De-Fi" platforms' developers to switch from the main ETH blockchain to a "Layer-Two" scaling solution like OMG or ZkSync. Migration might be a challenging task but not impossible. Sooner or later, ETH will need to scale its own Blockchain network with the adoption of sharding and PoS.

Any thoughts?