How to save on Ethereum commissions. Simple instruction

How to save on Ethereum commissions. Simple instruction

Let's talk about the Fantom ecosystem, which is suitable for users with small deposits

On the wallets of many users, stocks of ERC20 tokens and ether itself accumulate, which often lie idle, due to the fact that it is unprofitable to issue loans or provide liquidity on DeFi platforms. The fees of the Ethereum network can be more than the potential profits. Interaction with smart contracts on the air makes sense only for large positions from $ 10 thousand and more.

If the user, for example, plans to interact with $ 1 thousand in cryptocurrency, all commissions can be 10-20% of the amount, which eliminates the potential profit from providing loans or liquidity to the pools. Also, working in the ether network, users with small deposits lose mobility - it will be expensive to change platforms in search of a better percentage per annum.

The developers of many projects, understanding the request of users and following the unspoken ideals of the crypto space to make financial services available to everyone, regardless of the size of the deposit, have created several solutions to the problem of high commissions.

In this article, we will talk about Fantom (ticker FTM), an open-source technology, the convenience of which is that you do not need to install additional software - the Metamask extension already available to most users will suffice. Developers of decentralized applications on the Ether network of the project provide the opportunity to transfer their dApps to the Fantom Opera network in just a few clicks, significantly increasing bandwidth and reducing the cost of commissions.

Configuring Metamask

It will take a few minutes to configure the Metamask browser extension to work with the Fantom network. Having opened the extension, users click on the drop-down menu with the name of the currently connected network (most of the default connected is Ethereum Mainnet) and then select the "add network" option. In the window that opens, you will need to fill in all the fields by copying the field values from the official Fantom instruction at.

Now the Metamask extension can switch between the two networks. It is necessary to be extremely careful when sending funds to any of the networks, since the user's address on the Fantom network is exactly the same as in the Ethereum network, which can lead to address confusion. Tokens sent to the wrong network in most cases can be restored, but for this you will have to export your private keys (jeopardizing the safety of the entire wallet) and again pay commissions for interacting with the network.

If users are not used to switching between two networks in Metamask, it is recommended to first practice with small amounts by making trial transactions in each of the networks in order to get used to the mechanism of the extension. As the first useful small transaction, sending a small amount of FTM on the Fantom network from a centralized exchange to Metamask is suitable, this number users will later be able to use to pay network commissions.

Crossing the bridge

By configuring the extension and mastering the switching between the two networks, users can take advantage of the bridge and transfer ERC20 tokens from the Ethereum network to the Fantom network. For our test, we used the bridge" at At the moment, the bridge supports only the main ERC20 tokens, you can transfer to Fantom: DAI and other stablecoins, link token and ERC20 variant of the ETH token - THE WETH token. Crossing the "bridge" will take from 10 minutes to several hours and will cost as a regular sending of a token on the ether network - from $ 5 to $ 20, depending on the network load.

There are limits on the minimum sending of tokens to another network: for example, it will be impossible to send less than 80 DAI or less than 2.73 LINK. As soon as the user's tokens are in the Fantom network, you can start using smart contracts with minimal commissions of only a few cents.

Using the bridge will be a good idea, if the ERC20 tokens supported by the bridge are already in the same Metamask wallet, then it will take only one action to cross the bridge. If the ERC20 tokens are on a centralized exchange, then it is more economical to get the desired token in the Fantom network according to the following scheme: exchange ERC20 tokens for FTM within the exchange, transfer FTM from the exchange to Metamask in the Fantom network, exchange FTM for the desired token using a swap already in the Fantom network.

Exploring a new ecosystem

The transfer of tokens to the new network opens up a wide range of opportunities for interaction with projects running on Fantom. Most of the projects will please users with good percentages per annum and a pleasant fairy-tale-New Year aesthetics of interfaces. For our ecosystem test, we used the Spookyswap DeFi project by providing liquidity in a pair of USDC-TUSD stablecoins at 21%* per annum (a conservative investment strategy in case of a bear market in 2022) and in the LINK-FTM pair at 37% per annum (a riskier bull market investment strategy in 2022).

BoO tokens received as a reward for providing liquidity can be sent back to staking on the same site to receive rewards in FTM at 38% per annum or the TUSD stablecoin at 41% per annum (conservative strategy), or choose a small, rare token with the potential for price growth (risky strategy). Moderately frequent redirection of the received rewards to staking will allow in the amount to get a more favorable compound interest per annum due to the capitalization of profits. Small commissions of the Fantom network allow you to make the process of capitalizing the received rewards and fully automated when using the BeefyFinance service and other similar projects.

*Annual percentages are indicated at the time of writing and will differ depending on the market situation, the size of liquidity pools, the marketing strategy of the platform and other conditions.


Popular posts from this blog

"Investors need a minimum." When Bitcoin Will Begin Recovery

When Bitcoin Will Be More Expensive Than $100 Thousand: A Selection of Predictions

Eco-friendly investments. How to help the planet by earning on crypto assets