ETHA Lend Features — Gas Cost Optimization
Gas prices on the Ethereum network have taken a toll for the worst, often costing an arm and a leg for all types of user classes. The chatter around the cost that miners charge to perform a transaction on the Ethereum network has taken the center stage, as it keeps the steady rise intact. The whole concept and the imminent necessity of Gas costs for the network is well apparent and can get quite complicated, to say the least.
Yes, the transaction fees fuel the entire network, and there is no denying that. But, on the other spectrum, the hunger for a solution that presents an answer to keep the gas cost within reasonable limits and creates a harmony between the network and the user is profound and most certainly urgent.
A large part of making DeFi all-inclusive is to fight the high barrier to entry costs for the average user, which invariably means addressing the problem of VERY high gas fees. Besides inclusiveness, cost efficiency is a major attribute that ETHA Lend aims to implement for our users.
With the UX/UI snippet release and the Mainnet Soft launch, we are proud to say that from time to time, ETHA Lend has exhibited to our community, how the protocol shall uphold the highest standards of operating efficiency for our users. With this post, we hope to show our community how we target optimal cost efficiency and inclusiveness through Gas cost optimization.
But, before we get into the nitty gritties of how ETHA Lend offers users a clear advantage by allowing them to save up on transaction fees by up to 52%, we need to understand a few basics-
What exactly is Gas fees?
When you make a transaction on the Ethereum network, you need to pay a transaction fee in ETH. The complete percentage of this transaction fee goes to the hardware power that constantly secures the Ethereum network.
There are two factors that determine the value of transaction fees — one, how busy the network is at that time, and two, the complexity of the said transaction. In a real-world scenario, Gas can be understood as the fees that a traditional bank charges for transferring money across accounts.
Moreover, it is quite impossible to predict the exact amount of the transaction fees on the network.
You can monitor Ethereum’s gas fees at any time here: https://etherscan.io/gastracker.
ETHA Lend’s Answer to Cost Efficiency — Remedying Crazy high Gas Cost!
In order to tackle the ever-increasing concerns of high gas fees, ETHA Lend introduces the Gas cost optimization powered by the CHI Gas token integration.
What is Gas Token, and what is the CHI Gas token?
A Gas Token enables users to take advantage of the Ethereum network’s storage refund mechanism. In order to promote smart contracts to erase extra or unnecessary storage, Ethereum incentivizes them by offering a refund for every zeroed storage element. Gas Tokens exist for the cause of subsidizing high gas prices on transactions. When the Gas price is low, Gas tokens facilitate the addition of a state to the chain and the subsequent removal of this state when the price rises, making these tokens extremely liquid towards gas.
Hence, Gas tokens can act as a hedge against gas fee volatility. The CHI Gas token is an ERC-20 token developed by 1inch exchange. The CHI token is fixed to Ethereum’s gas price, meaning when the gas price is low, the CHI token’s price replicates that and is low. The same principle follows when the gas price is high.
Unlike other protocols that pool the users’ deposits until the pool size reaches a minimum threshold, for the cause of gas optimization, ETHA Lend does not hold users’ funds; thus, allowing users to have custody of their deposits at all times. You trigger the rebalancing feature, and you are always in control of your assets. This means that you are also able to redeem without any delays or lock-up periods as well as receive your returns in real-time!
ETHA Lend enables the CHI Gas token onto the protocol, allowing liquidity providers to save up to 52% in transaction fees. This translates to lower gas costs for our users, particularly when the network is congested. Supplementing this with ETHA Lend’s interoperability, discovery algorithm, and portfolio rebalancing features, our users can enjoy the highest standards of cost and operational efficiency.
As we edge closer to the Mainnet launch, we hope to expand on all the ETHA Lend features, allowing our community a better insight into the revolution we shall stir, eventually. Lowering transaction fees for our users is a big focus of the ETHA team. We are passionate about bringing early industry advantages to our community through intelligent features and implementations. Until then, we are extremely grateful and excited to have an enthusiastic and supportive community. As always, make sure to let us know how you feel about ETHA Lend’s gas optimization endeavor on any of the channels listed down below.
Come and say hello to the ETHA community and learn more about the platform as well as other features-