I try to use DeFi protocols everyday. Sometimes it’s because the UX is actually better than a centralized alternative, and other times it’s simply to learn how things work. If you’re like me, maybe you recently went to claim some staking rewards or place a trade only to be shocked by the network transaction fees being charged on Ethereum. There are times when I see the $50 fee staring me in the face, whisper what the fuck under my breath, then I bite the bullet and hit confirm on the transaction anyway. Judging by the uptrend in gas prices, you’re probably doing the same too. There may not be a better indicator for true fundamental demand than market participants continuously choosing to pay the higher fee because they need to transact.
I’m not just here to complain about how much I’ve spent on gas recently though, I also bring good news that might help you save some money moving forward. While we all wait for scaling solutions to take hold, there are already tools that exist today which can reduce the cost of transacting on Ethereum. GasTokens, such as GST2 and CHI, let anyone tokenize gas as a way to hedge against price increases. How does it work? When gas is cheap, you mint GasTokens, storing gas for later. When gas gets expensive, you burn the GasTokens, “releasing” the stored gas and reducing the transaction fee you have to pay at that time. This can lead to a 42% reduction in transaction fees. N