Gas Fees Got You Down? 3 Ways PlasmaFinance Will Help You Beat the Gas Blues!
We know it. You know it. The entire DeFi space knows it.
Ethereum may have broken all-time highs in terms of price this year, registering prices above $2,000, but this achievement has been marred by record highs on gas fees, making many DeFi protocols, the majority of which run atop Ethereum, unfeasible for casual investors.
Transaction costs on the Ethereum network isn’t a new problem, and it has been climbing gradually for some years now, seriously diminishing DeFi’s impressive returns on the most active DeFi network at the moment. The pain of high transaction costs, easily $100 and up per transaction during serious congestion, has punished every move traders and yield farmers make.
With DeFi generally requiring the execution of more complex smart contracts, as opposed to simple spend transactions, some interactions could even incur fees exceeding $1,000. Last month, one user on Twitter threw up his hands in the air after seeing that it cost almost $5,000 just to accept a bid on the NFT platform Rarible.
Binance CEO CZ even said jokingly now that Ethereum is “a network for the rich guys” and he has a point. Yes, we know, ETH 2.0 is on its way but it will be many months, maybe even a year, before anything close to a solution is mature and ready.
At PlasmaFinance, frankly, we’re sick of talking about this gas issue that isn’t going anywhere, and getting worse by the day. So, apart from building an awesome platform that we believe will help make DeFi easy and accessible to the regular user and to professionals, we’re also keen to alleviate the problems of the “here and now”.
Here’s how PlasmaFinance is tackling the high gas fee problem of Ethereum, with one solution live and two in the works!
1. Flash Rebalancer
We’ve detailed just how easy it is now to adjust your liquidity across pools, moving your assets from one pool on a provider, to another pool on another provider. All this is done in one single step, executed in 1 single transaction.
Very cool, very easy.
But the real sweet deal here is the huge cost savings in terms of gas. Without Flash Rebalancer, a typical liquidity adjustment from pool to pool would involve at least 4 transactions (to swap in and out for 2 tokens in the pair). Imagine the losses incurred from fees! It’s no wonder people don’t bother moving liquidity to take advantage of better yields elsewhere, if the fees render those advantages useless!
But with Flash Rebalancer, liquidity migration is a simple one-step move.
2. Gas Station
You’re an experienced yield farmer. You’ve done all your calculations. You’ve set aside all the right amounts of tokens to complete your swaps and add liquidity to your selected pools. And just as you’re executing transactions, the network gets congested and gas fees rise.
Suddenly, your ETH reserves aren’t enough to complete all your transactions. So you’re stuck with two choices: wait for fees to come down, or go and buy some more ETH. Either way, you lose time or you lose money.
We’ve all been there before, haven’t we?
PlasmaSwap’s upcoming Gas Station will be a simple yet elegant solution unique to any DEX or AMM in DeFi, allowing you to pay for transactions without needing ETH! Gas Station will accept USDT, USDC or PPAY (more coming) so you can use those balances in your wallet if you run out of or don’t have any ETH left.
That’ll save you some time and money and the need to maintain ETH levels all the time!
3. Hyperloop
There’s one final nail we’re preparing to slam into the coffin of high gas fees: Hyperloop! Coming in Q2, this Layer 2 solution makes use of our very own PlasmaDLT to settle your DeFi transactions near-instantaneously on a high-throughput network that will cost you ZERO fees. Best of all, it’ll be seamlessly integrated into PlasmaSwap so you don’t even have to worry about setting up as it all takes place in the background.
No more calculating gas fees and praying that the price doesn’t spike. No more wondering why transactions aren’t confirming. No more missing out on windows of opportunity.
Hello instant transactions and clean yields without damn gas fees eating into your profits!
And there you have it. 3 major and practical ways PlasmaFinance is solving the gas issue. So if you want to start saving on gas fees and focus on DeFi yields, then you know where to take your liquidity.
You’re welcome.
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