ETH's fees on "De-Fi" platforms are ridiculously high

[bjmpoker001]

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.

[int03h]

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.

[bitkanu]

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

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.

[qwizzie]

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

The increasing number of transactions sent to the UNI smart contract appears to have led to a surge of the gas fee on the Ethereum network, which Uniswap’s protocol is built on.

The current average gas fee on Ethereum has reached 650 Gwei, compared to the average 152 Gwei on Wednesday UTC time, based on Etherscan’s data.

In fact, the UNI token’s smart contract address is now ranking the 3rd in terms of the overall transaction fees in the past three hours, with a total of 534 ETH worth over $200,000 as of writing,
according to Etherscan.

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.

[shakesbear]

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 ?

[poodle63]

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.

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?

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 ?

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

[Bitbuffalo]

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?

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[Hypnosis00]

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.

Creating these multisig smart contracts to secure exchange clients’ funds involves gas fees, which cost millions of dollars. But it’s not just people’s wallets that have been suffering. Because fees are denominated in Ether (ETH), a more congested network may lead to slower development of Ethereum-based projects.

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.

[Cryptoangel01]

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.

[justdimin]

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?

[gatti]

this is a real problem about ethereum, if the fees will be high is almost impossible to withdraw your token from your wallet, even for sending a minimum amount, they should work to reduce the fees price

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.

[masterrex]

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.      

[shoreno]

I'm experiencing some delays with my transaction and it's not good 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 annoying only the miners are getting rich in this kind of set up.      

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 .

[atjiat]

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.

[semobo]

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.      

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.

[bitgolden]

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.

[DarkDays]

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).

[Abiky]

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)

"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

[Easteregg69]

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?

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

Check on receiving address show the funds was never received.

[Twinkledoe]

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.

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.