A story in two pictures.
A quick cautionary tale about Decentralized Finance (DeFi #dopefi).
I had put some 1Inch and renDGB in a swap pool on 1Inch in order to take advantage of some staking rewards. Over the month or so the pool was being promoted, it got the rewards listed as advertised (about 50% APY over the month).
A fairly reasonable return, that looks a lot better when 1Inch spikes.
The point here is that the promotion has ended, so I would like to withdraw my tokens and then do something else productive with them. Herein lies the problem with ETH at $4,000+ and shittokens (shib/akita/pig/safe*, etc) sucking down mad gas as people chase 10x spikes every week….
When attempting to withdraw my tokens, here is the fee I was quoted…
$868.21 to withdraw ~$280 worth of token and $13 worth of rewards.
This is what makes DeFi unworkable in the current Ethereum ecosystem.
Yes, I know EIP-1559 and ETH 2.0 are working to solve this problem. Yes, I know other chains have already largely done so.
This is one of the biggest dark secrets in DeFi right now…lots of folks can’t get their money back out of dApps.
We’ll see how things look over the summer, but this is quite an interesting phenomenon, and we’ll see how long it takes to try and resolve it.
If you like this content, please feel free to send tips to my Starname. (probably want to avoid using ETH right now on that. 😉