4 ms·

I was away from the crypto space for a while and I decided to try shorting some currencies yesterday using a DEX based on Ethereum. I wanted to create a positio

by haolez 6y ago

I was away from the crypto space for a while and I decided to try shorting some currencies yesterday using a DEX based on Ethereum. I wanted to create a position with 1000 dollars. The estimated fee for my transaction was 490 dollars. Something is broken in this environment.

artogahr 6y ago
How does that even happen?
- 3np 6y ago
  Limited transaction throughput (given by block size * block time) + an open fee market where people outbid each other to get priority. The only reason it's this expensive is that there's enough capital willing to pay the price.
- eswat 6y ago
  Congested network + fees dictated by the complexity of smart contracts being used (which would be much higer for something like a DEX transaction).
- px43 6y ago
  Three things. 1. The contract in questions is doing a lot more on chain logic than it should be doing. 2. The network is currently incredibly active, pushing up the average gas cost per transaction. 3. The price of Ethereum itself, in which gas price is denominated, has risen about 10x in the past few months. Usually the prices die down in a couple weeks, but if there is concern that people are being priced out of the network for an extended period of time, miners will raise the global gas limit, and things will rapidly go back to "normal". The thing is though, people are paying the high fees. This chart has a really great breakdown of where all the fees have been going to in the past 30 days: https://ethgasstation.info/ https://ethgasstation.info/
  - zionic 6y ago
    The short version is that a seemingly large number of people are willing to pay out of this world fees to trade on a decentralized, uncensorable currency exchange. This is consuming the entire chains resources at the moment. The good news is that Uniswap (the top gas guzzler) is trying to move to L2 within 90 days. That will allow cheap/instant trades and L1 fees/usage will only occur when depositing or withdrawing. This should free up a lot of network capacity, and the high fees incentivize the devs to hurry up.

by haolez 6y ago

artogahr 6y ago

How does that even happen?

3np 6y ago
Limited transaction throughput (given by block size * block time) + an open fee market where people outbid each other to get priority. The only reason it's this expensive is that there's enough capital willing to pay the price.
eswat 6y ago
Congested network + fees dictated by the complexity of smart contracts being used (which would be much higer for something like a DEX transaction).
px43 6y ago
Three things. 1. The contract in questions is doing a lot more on chain logic than it should be doing. 2. The network is currently incredibly active, pushing up the average gas cost per transaction. 3. The price of Ethereum itself, in which gas price is denominated, has risen about 10x in the past few months. Usually the prices die down in a couple weeks, but if there is concern that people are being priced out of the network for an extended period of time, miners will raise the global gas limit, and things will rapidly go back to "normal". The thing is though, people are paying the high fees. This chart has a really great breakdown of where all the fees have been going to in the past 30 days: https://ethgasstation.info/ https://ethgasstation.info/
- zionic 6y ago
  The short version is that a seemingly large number of people are willing to pay out of this world fees to trade on a decentralized, uncensorable currency exchange. This is consuming the entire chains resources at the moment. The good news is that Uniswap (the top gas guzzler) is trying to move to L2 within 90 days. That will allow cheap/instant trades and L1 fees/usage will only occur when depositing or withdrawing. This should free up a lot of network capacity, and the high fees incentivize the devs to hurry up.