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

[Kotone]

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.

Its true. Scaling gas fee should have been the priority first before going to any additional feature. Due to this, Ive been using different blockchain for now until gas fee goes back to a little bit lowered. A 30 to 100$ gas fee is unacceptable. If eth wanted their user to stay then fixed this. Cause a lot of complained has been observed. If that includes tapping layer 2 solution then si be it.

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[seamusdorakos]

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.

This is obviously one of the main options.
As trader you also should understand that high fees are that high only because of incredible defi demand at the moment - that exact demand gives huge boost to some alt's price and thus your trading can be profitable in the first place.
But that comes in with a price and you surely can switch to Tron or other blockchain.
I've decided to hold my funds and wait for things to settle down / or for ethereum to be updated

[bryant.coleman]

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.

This is like the shittiest justification I have seen. As far as I know, a majority of those who invest in the DeFi projects are small and medium sized investors. Do you want to limit the DeFi projects just for the uber-rich? And also, what makes you think that the rich may not complain about the ultra-high transaction fee? And do you guarantee that the coins will go up by 2x or 3x, as you have written. In such case people would not bother much about the fee. Seriously, some of the newbs in this forum seems to be suffering from "foot in mouth disease".

[James Alberto]

There is currently no benefit to trading on Uniswap. Uniswap's biggest problem is transaction fees. If you have to pay a fee of 10 to 15 dollars per transaction So it will harm you and not benefit you. It is better to use another platform.

[qwizzie]

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.

This is like the shittiest justification I have seen. As far as I know, a majority of those who invest in the DeFi projects are small and medium sized investors. Do you want to limit the DeFi projects just for the uber-rich? And also, what makes you think that the rich may not complain about the ultra-high transaction fee? And do you guarantee that the coins will go up by 2x or 3x, as you have written. In such case people would not bother much about the fee. Seriously, some of the newbs in this forum seems to be suffering from "foot in mouth disease".

Actually i agree with diskodasa. I also think this will trap small investors already invested in DeFi projects because of too high DeFi fees, and if DeFi volume / transactions keeps increasing on Ethereum network then only large investors can afford to use it as these DeFi fees are still small costs too them. Also shady developers of shady token projects will have zero problem with paying a $100 DeFi fee, to exit-scam their project.

Small traders / investors users on the other hand will start switching to other platforms / other cryptocurrencies. DeFi fees seem to rise exponentially and should not be confused with gas fee.
I would not be surprised to see DeFi fees increase with a factor of 2 or 3, if DeFi volume keeps getting higher.

[r32godzilla]

The resolution would be if the DeFi tokens migrate to the new ERC 677 standard, that is used by Chainlink and XDAI. ERC 677 allows staking and the fees for sending tokens are much lower. This would solve the problem until Ethereum 2.0 comes with more scalable blockchain .

[royalfestus]

With all the reaction on High ethereum transaction fee from Defi, there is still less adoption of Defi on other blockchain. Some of the Defi projects that plan to move to their platform or new blockchain are delaying because of the price movement as project on ethereum. Tron tried to attract traction with recent dump on ethereum but didnt last a week.

[cheezcarls]

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.

I would prefer Stellar Lumens (XLM) blockchain than TRON (TRX) in my opinion. Fees are very tiny plus the transaction speed is unquestionable. This is the only downside of DeFi right now. If they cannot address this ridiculous high gas fees in the DeFi space, there is a big chance that this industry won't last long unless they are moving to another blockchain like TRX. As much as I liked TRX's blockchain, my gut feeling is on Stellar Lumens blockchain.

[yazher]

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.

That's hilarious! how in the world can they make such a huge percentage of transaction fees? I mean, It doesn't make any sense at all. too high my friends. I think if you can find some way like converting it to any other cryptocurrency before transferring it to your main account that would save your day. because that's too much for a fees and day trading would not make much money from them if they won't make any changes to this problem.

[bitcoinst]

Everything is relative. The high fees on the Ethereum network are inconvenient for everyone, including me. However, you need to understand that this is a matter of habit. We are accustomed to the fact that on the Ether network there are always low fees, while on the Bitcoin network, they could be both low and high. Miners, for example, are, on the contrary, happy with this outcome of events, because their profits have increased. This is a blockchain and it has exactly these costs. I don't think anything can be done about it. Those who are not satisfied with high commissions, like me, will be forced to adapt or switch to another blockchain. One way or another, this is a guarantee of development.

[pilosopotasyo]

Everything is relative. The high fees on the Ethereum network are inconvenient for everyone, including me. However, you need to understand that this is a matter of habit. We are accustomed to the fact that on the Ether network there are always low fees, while on the Bitcoin network, they could be both low and high. Miners, for example, are, on the contrary, happy with this outcome of events, because their profits have increased. This is a blockchain and it has exactly these costs. I don't think anything can be done about it. Those who are not satisfied with high commissions, like me, will be forced to adapt or switch to another blockchain. One way or another, this is a guarantee of development.

Two of the alternatives people are recommending are EOS and Tron, there are already DeFi in the Tron and they are going to get a slice in the market of these DeFi projects, Tron's fee is very low at 1 cent even if you send a big amount, they are a big challenge now for Ethereum's leadership in the DeFi market.

[Vishnu.Reang]

The resolution would be if the DeFi tokens migrate to the new ERC 677 standard, that is used by Chainlink and XDAI. ERC 677 allows staking and the fees for sending tokens are much lower. This would solve the problem until Ethereum 2.0 comes with more scalable blockchain .

It is not easy to migrate from one Blockchain to another and then to reverse this after a few months. I would have still considered it, if ERC-677 was a tried and tested platform. But that is not the case, as it is relatively new. I first heard about it in 2018, and have never used the platform to trade or store any of the tokens. I guess very few of the users here in Bitcointalk may have experience with ERC-677.

[pawanjain]

It's the gas that is getting too high in price. It's all because of the DeFi hype that the network is getting so congested.
But lately many DeFi projects are doing exit scams which is making the market very unstable for DeFi tokens.
I think we should wait for the DeFi hype to settle and the transaction fees to reduce.
If you have really invested in a potential DeFi project then you need not worry but wait.
Otherwise it might be a trouble since people are already in a panic due to the recent exit scams of shit DeFi tokens.

[Abiky]

$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.

Agree. Fees have been extremely high a couple of weeks ago. Luckily, there has been a reduction in network activity, resulting in reduced fees. I can now withdraw my DAI from Compound for only $20 (in USD). It's still a bit high, but affordable to pay for the average person participating in "De-Fi" platforms. ETH needs to scale urgently in order to maintain adoption of such platforms in the mainstream world. Otherwise, people wouldn't want to use "De-Fi" on top of traditional banking. With high fees, making profit through lending becomes widely unfeasible. With ETH's current situation, developers might migrate to alternative smart contract platforms like Tron and EOS. After all, these contenders of the ETH blockchain are extremely fast and dirt cheap to use for daily payments. Using "De-Fi" platforms on these blockchain networks becomes feasible. But somehow, developers have stayed on the Ethereum blockchain after all these years. I guess that decentralization goes above high fees and slow transaction confirmation times.

Nonetheless, time will tell us if "De-Fi" will be able to live up to the task with high fees on the Blockchain. No one serious enough about their money will use "De-Fi" on top of traditional banking. It's more experimental grounds than anything else. Unless scaling issues are fixed, I don't see this going anywhere. "De-Fi" may turn out to be an idea that will slowly fade into oblivion. Just my opinion

[escalante28]

Defi projects are so much trending nowadays and lots of investors were attracted to it. The high fees which is likely 100$ is just a penny to them. And because of that the transaction fees on Ethereum network are becoming ridiculously high.

[Henrytrust]

I learnt that the reason we've had the gas fee escalated to this point is because of Defi projects. Yield farming which is a product of decentralized finance has increased the number of transactions in the ethereum blockchain and since the blockchain is congested, higher gas fee becomes the order of the day.

[bobyhodob]

Defi projects are so much trending nowadays and lots of investors were attracted to it. The high fees which is likely 100$ is just a penny to them. And because of that the transaction fees on Ethereum network are becoming ridiculously high.

I think ethereum and DeFi network transactions are not the same they have different platforms, whereas if ethereum has very high gas costs then it is due to the influence of the density of transactions and the high price of ethereum on the exchange, so far what I know is like that.

[nutildah]

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)

[iged_war]

Defi projects are so much trending nowadays and lots of investors were attracted to it. The high fees which is likely 100$ is just a penny to them. And because of that the transaction fees on Ethereum network are becoming ridiculously high.

I think ethereum and DeFi network transactions are not the same they have different platforms, whereas if ethereum has very high gas costs then it is due to the influence of the density of transactions and the high price of ethereum on the exchange, so far what I know is like that.

yes its have different platform , but in defi there are much transaction every minutes and it did in the same time. like a channel , with minimum capacity but used by much user so only transaction that used high fee will allowed to used this channel. isn't it miner will take trx with high fee first ??
and it will be the reason

[Tervelatuk]

Defi projects are so much trending nowadays and lots of investors were attracted to it. The high fees which is likely 100$ is just a penny to them. And because of that the transaction fees on Ethereum network are becoming ridiculously high.

I think ethereum and DeFi network transactions are not the same they have different platforms, whereas if ethereum has very high gas costs then it is due to the influence of the density of transactions and the high price of ethereum on the exchange, so far what I know is like that.

yes its have different platform , but in defi there are much transaction every minutes and it did in the same time. like a channel , with minimum capacity but used by much user so only transaction that used high fee will allowed to used this channel. isn't it miner will take trx with high fee first ??
and it will be the reason

that's the point mate, so miner confirmation on high fee transaction that will be their priority ? so its why many transaction in uniswap use high gas gwei , cause trader didnt want miss the best price to get. i am agree with your describtion about chanell , and its suitable with current condition.