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Today, I noticed that I had a small amount of BAT lying around on my mobile BRAVE wallet, which I never connected. Turns out, I had around $60 worth of the stuff (factoring in today's pump) just sitting there! So...what to do?
Well, I had been looking around and found out about the wonderful world of dApps, in particular deFi, and how it was a lucrative strategy to earn crypto passively. So after moving my coins into my wallet, I decided to give it a shot.
Gas Guzzler #1: Conversion
The first step on my journey to passive income was to convert my hard-earned BAT into something that decentralized exchanges (DEX's) would want. In my case, I wanted USD Coin (USDC) for my BAT.
Going through UniSwap, I was shocked by the transaction fee. First one wasn't too bad - $3 or so worth of ETH. But the second? Nearly $16, DAMN! It seems like according to experience:
Confirming the contract -> ~10% of total amount
Transfering + swapping -> ~50% of the total amount?!
So I left the exchange noticeably poorer.
Gas Guzzler #2: Deposit
After getting my $30 worth of USDC, minus the $17 worth of ETH, I crawled my way over to compound.finance, a reputable DEX that seemed to have pretty decent rates. And here, I encountered the same issue - 10% of deposit just to confirm the damn contract, and then another 50% on top of that to transfer the coins over!
All in all, I took $60 worth of BAT -> USDC (-$17 ETH) -> cUSDC (-$20 ETH), so I ultimately lost nearly 2/3 of my tokens purely in gas. That's outrageous.
Hopefully with ETH 2.0 coming soon™, the price of doing transactions across ERC-20 tokens decreases dramatically, because I can't imagine this being good for the average consumer.
If anyone has tips on reducing that gas fee, feel free to drop a comment down below. Thanks for reading!
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