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

[Abiky]

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?

[1714936518]

1714936518

[Fatemablabla]

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.

[7788bitcoin]

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.

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.

[bigcash2011]

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.

[qwizzie]

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?

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.

[meanwords]

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.

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.

[pakhitheboss]

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.

[judeafante]

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.

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

[southerngentuk]

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 .

[elda34b]

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.

[Ridwan Fauzi]

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.

[Genemind]

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.

[Henrytrust]

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.

[optimisticcm]

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.

[leea-1334]

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 .

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.

[Yaunfitda]

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?

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.

[Abiky]

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.

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

[hatshepsut93]

$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.

[Lagduf]

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.

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.

[diskodasa]

$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.

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.