Hey all, I have already written about the DEFI bull craze, the similarities to the 2017 bull run and all the red flags that anyone new should be looking out for in my previous article. Link here.
Having said that, it is also an incredible time to be making some insane gains if you have the appetite for the high risk high reward madness that is on in the DEFI world. Tokens galore that are doing 2x, 5x, 10x in insanely short amounts of time are the flavor of the current bull market. But one thing that bites most whenever there is a bull run on Ethereum based projects is the high gas fee. It doesn’t take much to wander on over to https://ethgasstation.info/ and confront this:
So, what were gas prices about 3 months ago before all the DEFI bull craze, or for that matter here is a little chart that shows the average gas price over the last year courtesy of https://etherscan.io/chart/gasprice
You can start to see what the problem is here. I was confronted with on average a fee between $3 and $4 USD on each of my trades on Uniswap V2. Even a simple transfer of ETH or one of its tokens is ranging between $1.5 to $2 USD for each transfer. If you are a small time player, you will get eaten up by gas costs.
So, here is some solutions that the DEFI community on twitter has been exploring. I have high respect for
@DeFi_Dad in this space and he has some great videos and articles on how to save on gas cost.
One of these solutions is 1inch DEX exchange https://1inch.exchange/#/
It claims to be a "DEX Aggregator with the best prices on the market." As far as I can understand it is a non-custodial solution, similar to Uniswap but instead of using gas, you can opt to use the native "CHI" tokens which is supposed to cut the gas costs in half. It also tries to get the best value for your trade by going through various DEXs and pools available including Uniswap. I am yet to fully investigate the mechanics of the operation of the CHI token and how it achieves the cost saving. But in the meantime here is a video from @DEFI_Dad that shows him going through the motions and saving on the fees.
https://www.youtube.com/watch?v=n4wrBIqXJIU&feature=youtu.be
All information credit goes to @DeFi_Dad from twitter as he produces some quality content that always is useful for the community.
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(Disclaimer: None of the information in the article should be considered financial or investment advice. This is a community blog where I consider all my readers as rational people that will Do Your Own Research before diving into new realms like crypto trading or DEFI. And remember to only play with money that you are prepared to loose completely and have no regrets!!)
