DeFi is all the rage. There are so many projects popping up here and there. As you sift through all of these different programs you have so many variables to consider. The one variable I would like to focus on is the fees. Because at the end of the day it all comes down to fees.
At a high level, in order to get in to a DeFi program you have to buy some asset in return for the opportunity to make a dividend or interest or whatever they want to call it. Some are liquidity pools, others are mining pools, and others are staking. Whatever, you decide to participate in you have to do you due diligence and determine on your own if in the future you can make a profit.
In the meantime, while you travel through this DeFi journey, along the way you will notice that you have to pay fees. Those pesky fees can add up. Especially if the platform is built on top of Ethereum.
If you have been following the crypto space for a while you will know that Ethereum Gas prices are at an all time high.
When you are trying to make a decision on what DeFi platform to you have to consider these Gas fees.
However, there is an alternative DeFi platform that doesn’t charge you any GAS fee. But, it is based on the EOS blockchain. I know there are people out there that don’t like EOS for whatever reason, but at the end of the day when you interact with a DeFi DAPP that uses the EOS blockchain you don’t have to pay any gas fees because ON EOS all transactions are FREE!
Now, if you don’t mind paying the huge Gas Fees feel free to continue to use those DeFi DAPPS based on Ethereum there is still money to be made. However, if you want to play around with some DeFi DAPPS that don’t charge you GAS FEEs you should look at:
https://defibox.io/
This is an awesome site that offers:
• Swapping
• Liquidity
• USN Minting
• Mining
• Staking
All with free transactions.
Be Safe out there
~S
Thank you for this explanation of certain points. I have heard about this too, and I found it interesting that Vitalik Buterin tweeted that you do not have to participate in these DeFi markets, and that they are printing too much liquidity for these farming schemes.
I also saw that ethereum fees were very high, and I try to stay away from ETH. Why would anyone use an ERC-20 when we have the Hive-Engine ?
I just joined HIVE like 10 mins ago. I didn't realize that steem forked. I'm so happy to see this. Does Hive have DeFi? if so can you shoot me a link?