Cover Image Source – modified
Ethereum is mooning officially. Ethereum 2.0 can be launched by 2020 end and the decentralized prediction markets are on fire with Ethereum 2.0 launch prediction. Ethereum gas fee is also skyrocketing. Due to the recent surge of DeFi activity on the Ethereum blockchain, gas fee has increased arbitrarily. Ethereum gas fee is the fee which is paid to the miners for validating a transaction. The price of gas always depends on the market dynamics and it is difficult to predict fee. Sometimes, the gas fee is as low as 1-5 gwei, and sometimes it is as high as 80-100 gwei. Ethereum blockchain is designed like this only. Often it happens that you are paying more gas fee than the actual requirement.
Is there a solution of high gas fee of the Ethereum blockchain? Gastoken can solve the problem. I wrote a detailed post on Gastoken sometimes back. If you want, you can read it here. GasToken was born in 2017 but it didn’t attain the desired mass adoption due to its complexity. GasToken is an Ethereum contract which tokenizes gas. It is designed to store gas when the price is cheap and it deploys gas when the price is high. If you use GasToken for Ethereum transaction, you can save the gas fee. GasToken has an ERC20 token standard. It uses the ‘storage refund’ mechanism of the Ethereum blockchain. If you are interested to know about ‘storage refund’ property of the Ethereum blockchain, you can read Ethereum Yellow Paper. When a storage element is deleted in Ethereum, it provides a refund. That’s how you save gas fee. Puzzled? You can think about storing your goods at a low price and selling during high price. Yes, that’s how it works. There are two versions of GasToken – GST1 and GST2. You can learn more about GST1 & GST2 here.
WTF is Chi token?
1inch Exchange, a DEX aggregator, launched Chi token. Among GST1 and GST2, GST2 seems to be more advanced. The idea of the Chi token is based on GST2 implementation. Chi token has a subtle difference with GST2. Basically they reduced the smart contract address size by mining a private key with Profanity address generator, which allowed decrease of the sub smart contracts’ sizes by 1 byte. They also fixed some operational issues of GST2. The result came out well.
“The Chi token is 1% more optimized for minting and 10% more efficient for burning.”
Image Source - Gastokens efficiency comparison.
Chi token supports integration to any smart contract and it can be done easily with some basic coding. Burning Chi tokens in the same transaction reduces the gas cost by almost 50%. You can write a Chi token contract here using Etharscan. Too technical? Don’t worry! You can mint Chi token using Chi Minter on 1inch Exchange.
Steps to use Chi Minter to mint Chi Token
• Step1: Open Chi Minter from your web 3 browser (example Metamask)
• Step2: Connect wallet
• Step 3: Deactivate all other exchanges except Chi Minter
• Step 4: Select ETH amount. The maximum minting limit is 140 Chi tokens. Suppose you pay 1 ETH and mint 140 Chi tokens. The platform doesn’t spend the entire 1 ETH for mining 140 Chi tokens. It reimburses unspent ETH to you. Don’t forget to check the price slippage. High price slippage can be risky for you.
Steps to use Chi token to reduce gas fee in 1inch Exchange
• Step 1: Go to 1inch Exchange desired market (Here I’m showing DAI to ETH swap)
• Step2: Connect wallet (here Metamask)
• Step 3: Select desired quantity of swap
• Step 4: Check the standard gas price. You can check gas price in Eth Gas Station also.
• Step 5: Click on ‘Activate Chi Token’ as shown. Remember that you should have Chi token in your wallet. You can obtain Chi token by minting or trading on 1inch Exchange.
• Step 6: Metamask pop up appears. Allow 1inch Exchange to spend your Chi token. You can edit the permission level in the settings. If you think, you are going to use it frequently, you can give it unlimited permission.
• Step 7: Now your Chi tokens are activated. Perform the desired swap function. Check the slippage percentage. Before swapping, you need to unlock DAI (as per example) or you can go for ‘Inifinity Unlock’ to save gas on multiple trades.
• Step 8: Now perform the swap. Your Chi tokens are already enabled. You should be able to save approximately 50% of gas fee during peak hours.
Don’t forget to check out Ethereum DEX aggregator 1inch Exchange
Note: The images (if not cited) are created by the author from the screenshots.