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Author Topic: 1inch introduces Chi Gastoken  (Read 192 times)
Ratimov
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August 16, 2020, 04:13:39 PM
Merited by xandry (5)
 #1

1inch introduces Chi Gastoken


Disclaimer: Chi gastoken is not an investment.

The 1inch team has launched Chi, a next-generation Gastoken that allows users to significantly save on gas.

The name of our project, 1inch, was inspired by Bruce Lee’s legendary “1inch punch”, an epitome of efficiency in Martial Arts, and aims to symbolize our efficiency in the crypto industry.


To execute a 1inch punch, you need power, in Asian Martial Arts it is called as Chi / Qi, whose equivalent in the crypto space is our new Chi Gastoken. Now, any user can burn their Chi tokens and thereby save on gas.


What is a Gastoken?

To hedge against gas fee volatility, GasToken was created. Basically, it’s a technology allowing you to tokenize gas. GasToken is a more liquid form of gas because it can be bought and stored at times when gas is cheap and released (spent/burnt) when gas is expensive (currently it’s up to 80 GWEI).

GasToken takes advantage of the “storage refund” on the Ethereum network.

Every transaction on the Ethereum network requires some gas. A Gastoken facilitates transactions with the same amount of work but less gas. A Gastoken takes advantage of the Ethereum storage refund, see Ethereum Yellow Paper. To encourage smart contracts to erase unnecessary storage, Ethereum provides a refund for each zeroed element. So, in the process of burning, a Gastoken’s smart contract erases storage that were filled during minting. The most efficient storage gas refunds are achieved by creating and destroying sub smart contract, not by direct writes and erases of the storage.

The idea for the Chi token is based on the original Gastoken GST2 implementation. We saw that there were ways to improve the efficiency with:

- Reducing the smart contract address size by mining a private key with Profanity address generator, which allowed us to decrease size of the sub smart contracts by 1 byte.

- Using CREATE2 instruction to deploy sub smart contracts for their efficient address discovery during burning process.

- Fixing ERC20 incompatibilities of GST2.



What is the Chi gastoken?

The Chi Gastoken is an ERC20-standard token that is meant to be used on 1inch exchange to pay transaction costs. The idea is similar to the GasToken token concept but it has some improvements. Chi is pegged to the Ethereum network’s gas price. When the gas price is low, the Chi price is also low, and the opposite. Just like GasToken, Chi is tokenized gas on the Ethereum network. The only difference is that Chi is used on 1inch and Curve, while GasToken is used across the entire Ethereum network.

Chi Gastoken price/ supply/ trading volume: https://www.coingecko.com/en/coins/chi-gastoken



https://etherscan.io/token/0x0000000000004946c0e9f43f4dee607b0ef1fa1c


Transaction costs on the Ethereum network

To transfer value on the Ethereum network you need to pay gas (GWEI):

- 10 GWEI = 0.00000001 ETH
- 100 GWEI = 0.00000010 ETH
- 1 000 GWEI = 0.00000100 ETH

Basically, gas is similar to fees banks charge on money transfers. Unfortunately, it’s nearly impossible to predict the exact size of the gas fee: it can rise in a few hours and then drop just as quickly.

You can monitor the Ethereum network’s gas fee on a daily basis here: https://www.ethgasstation.info/index.php


How much is Chi better than GST2?

The Chi token is 1% more optimized for minting, and 10% more efficient for burning.


Gastokens efficiency comparison. See https://www.desmos.com/calculator/9z3hnwzbbl

y = 15000 * x / (20065 + 5065 * x) // GST1
y = 24000 * x / (35974 + 6689 * x) // GST2
y = 24000 * x / (35678 + 6053 * x) // CHI


How much…

… does Chi save me?

To get discount on a transaction, the gas fee at the time of burning has to be twice as much as what it was at the time of minting. E.g., you mint Chi at 20 gwei and use/burn Chi when the gas price is >40 gwei.

… does Chi minting cost?

It depends upon Ethereum gas price . E.g.: to mint 140 CHI with 20 GWEI of gas will cost you ~ 0.1 ETH. Increase of gas price would increase the mining cost



It depends upon the number of transactions you need to perform and upon the gas price. Currently, it is ~0.020–0.040 ETH.

… is the max Chi supply?

Infinite. It is a utility token that is not owned by anyone. Its supply cannot be controlled or limited in any way.

… Chi is required for a transaction?

It depends upon how much gas a specific transaction requires. An average transaction would cost you up to 20 CHI




How Chi can be used?

The deployment of a Ethereum smart contract requires substantial gas, and it could cost you for example between $5 and $10 per million of gas, while regular smart contract could have size of several millions of gas. But burning Chi tokens in the same transaction would reduce these costs by almost the half.

We have built on ETHGlobal HackMoney Online Hackathon such a tool called Deployer.eth.

The support of Chi token can be integrated in any smart contract with just a few lines of code by using following modifier:

Code:
modifier discountCHI {
    uint256 gasStart = gasleft();
    _;
    uint256 gasSpent = 21000 + gasStart — gasleft() + 16 *
                       msg.data.length;
    chi.freeFromUpTo(msg.sender, (gasSpent + 14154) / 41947);
}

In this case, Chi tokens will be burned from the caller’s wallet (Chi tokens should be approved to the contract by the user).

In case of burning Chi tokens from the contract itself (rather than from a user’s wallet), you need to change `msg.sender` in the ` chi.freeFromUpTo` function to `address(this)`. And don’t forget to top up your contract with Chi tokens.


How can you mint Chi tokens?

You can mint Chi tokens directly on Etherscan. Another option is the Chi Minter on 1inch. To use it, you need to deactivate all exchanges, except for the Chi minter.


Chi Minter нa 1inch

The maximum minting limit is 140 Chi tokens, which, in turn, is explained by the block limit. We deliberately use about one half of the block, so that miners won’t reject this type of transaction, which is less profitable for them.
If, for instance, you swap 1 ETH using Chi Minter, you get 140 Chi tokens and pay 20 GWEI for gas. But we won’t spend the entire 1 ETH as the minting of 140 Chi tokens doesn’t cost that much. Only what is actually spent will be spent:

5,125,271 gas x 20 GWEI = 5125271*20*1e9/1e18 = 0.10250542 ETH

So, only about 0.1 ETH will be spent, rather than 1 ETH.

One other thing. When you mint Chi tokens and indicate a low gas price, your wallet will be blocked. Therefore, we advise that you use a separate wallet specifically for minting Chi tokens.


How can you trade Chi Gastoken

It is also possible to trade Chi token on 1inch. For that you need to select Chi in the from token drop down and a token you wish to get in the to token dropdown. 1inch find the best place where to sell your Chi token.

Very important to understand for everyone:
Imagine Chi token as tokenized version of actual gas price on Ethereum. Means if the gas price grow. Chi token price also grow. If gas price in Ethereum drops, the same would also happen with Chi.


Selling Chi token on 1inch for the best market price

Of course you can set a limit order on 1inch with the rate you wish.


Limit order on 1inch

Due to a need for constant supply of Chi gastokens, 1inch team buys Chi quite frequently, which in turn guarantees that your order will get executed in any case.

Provide liquidity for the Chi gastoken pool on 1inch:

- go to EARN on 1inch

- select Chi gastoken in the TOKEN FILTER field

- check out the available, most profitable pools and token pairs (e.g. CHI/ETH(WETH), CHI/DZAR, CHI/USDC)

-select one of the pools using the plus sign next to the pool name or create your own on Uniswap V2 or Balancer (using the sign in the upper left corner);

- select the amount you want to contribute;

- confirm the transaction from your Web3 wallet.

- hit the PROVIDE LIQUIDITY button.


Investment and price speculations

As stated above, Chi gastoken is not intended for investment. It is a functional token whose price is strictly determined by the Ethereum network gas price. There is no correlation between the number of Chi gastokens minted (total supply) and its price, as Chi minting is available to anyone at any time. This token was designed to be destructed for the refund.

However, after its launch, Chi will begin to trade on secondary markets where its price is defined by demand. Free trade and speculation creates a situation where there are two Chi prices — one is in CHI Minter and another one on platforms like 1inch and Uniswap. Often, these two prices diverge, which causes confusion. As stated in the original blog post, in the CHI Minter, the Chi price closely follows the gas price on Ethereum. But on the market, the price is often defined by demand, which can lead to speculation. We encourage you to be cautious about pump-and-dump schemes around Chi. Stay safe!


How to deploy a smart contract with less gas costs?

You need to approve the Chi token to deployer.eth. To do that, go to the Write Contract section on Chi. Find the approve function and trigger it with the deployer.eth address and approval amount.


Click on the Deploy button on remix.ide and copy data to deploy (0x6080604…). Don’t click on
confirm.



Go to the Write Contract section on the deployer.eth contract and paste the deploy data to chiDeploy for Chi burning. Click Write and confirm the transaction in the popup MetaMask window.


Here we are! Only 51.18% of gas was used and 6 Chi tokens were burned.


Finally, go to the Internal Transactions section. There, you can find the deployed contract address. Just find create_0 below the Type Trace Address. In this line, below the To column you can see the deployed contract address.





It has been almost two months since 1inch launched its own gastoken — Chi. The innovative project placed first at DeFi’s “Hack Money” event in May and then quickly became available to users.

Since then, we have been closely watching the performance of this token. Many 1inch users, especially those who trade on a daily basis and arbitrageurs, have shown interest in using Chi to cut gas costs for their transactions. We are also proud that other projects have started using Chi, e.g. Curve.


As gas prices rise, the demand for technical solutions soar. It has been inspiring to see how 1inch users grasp the Chi concept, utilize the token and even suggest some witty ideas on how to improve it.


Useful Links

- Deployer.eth: https://etherscan.io/address/deployer.eth
- Chi Gastoken on Etherscan: https://etherscan.io/token/0x0000000000004946c0e9F43F4Dee607b0eF1fA1c
- Chi Gastoken repository: https://github.com/CryptoManiacsZone/chi
- Chi Minter on 1inch: https://1inch.exchange/#/ETH/CHI
- Twitter: https://twitter.com/1inchExchange
- Telegram channel: https://t.me/OneInchExchange

Sources:

- https://medium.com/@1inch.exchange/1inch-introduces-chi-gastoken-d0bd5bb0f92b
- https://medium.com/@1inch.exchange/everything-you-wanted-to-know-about-chi-gastoken-a1ba0ea55bf3

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