Golden Observation｜How hot is DeFi? YAM makes Ethereum transaction fees break records

How hot is DeFi? Just look at Ethereum transaction fees.

DeFi has made the total daily transaction fee of Ethereum exceed the historical high of the ICO period. On August 12, the total daily transaction fee of Ethereum exceeded $6.87 million, breaking the all-time high of $4.55 million set in January 2018. On August 13, the total transaction fee of Ethereum reached 8.61 million US dollars, breaking the record again. the

Skyrocketing transaction fees are a double-edged sword. High fees mean that there is a high demand for the use of Ethereum, which can bring higher income to miners to protect the Ethereum network, but it may also mean network congestion, excluding ordinary users from the Ethereum network, and only giant whales have the ability to participate in DeFi . the

Golden Afternoon News | A list of important developments at noon on September 22: 7:00-12:00 Keywords: SEC, Polkadot, Uniswap, Brazil

1. The U.S. Office of the Comptroller of the Currency and the SEC issued guidelines for stablecoins for the first time;

2. The Polkadot layer-2 expansion protocol Plasm has locked 80,000 ETH within three weeks;

3. A group of anonymous Uniswap users jointly launched the community token UNII to support the development of Uniswap;

4. Brazilian fund management company cooperates with Nasdaq to launch Bitcoin ETF;

5. South Korean Internet giant Kakao may be interested in entering the DeFi field;

6. Co-founder of Morgan Creek: will invest heavily in the field of digital art;

7. The Avalanche main network has been launched, 160 million AVAX participated in the pledge;

8. The BTS mainnet version 5.0.0 has been released and will be activated at 1 am on September 29. [2020/9/22]

At the same time that the Ethereum gas fee broke new highs on August 12-13, the big event in the Ethereum community was the launch of the DeFi project Yam Finance token YAM. The following Jinse Finance reporter will take you to review how YAM made the transaction fee of Ethereum break a new high.

Golden Morning News | PayPal announced its withdrawal from the Libra Association The Bakkt Bitcoin futures contract has undergone its first large transaction: 1. PayPal announced its withdrawal from the Libra Association and will continue to cooperate with Facebook in the future.

2. The EU will urge the G20 to respond to stablecoins such as Libra.

3. Members of the House of Representatives urged Zuckerberg to attend the meeting to discuss Facebook's cryptocurrency plan.

4. The Bakkt Bitcoin futures contract has been traded for the first time.

5. The Hong Kong Securities Regulatory Commission issued regulatory provisions for licensed virtual asset management companies.

6. Guo Taiming, founder of Red Sea Precision: He is planning to launch a Taiwan version of Libra.

7. V God: The Ethereum 2.0 public test network will be launched soon, and the proof-of-stake mechanism will be launched soon.

8. President of Kyrgyzstan: Cryptocurrency and its impact on the economy must be treated with caution. [2019/10/5]

Analysis | Golden disk: ETC/USDT fluctuates at a low level, obviously pay attention to the breakout of the range: Comprehensive analysis of the golden disk: ETC/USDT trading volume has dropped sharply, and the short-term is oscillating between 15.30-14.50, pay attention to the breakout of the range. [2018/8/10]

At 17:00 UTC time on August 11, the DeFi project yam.finance announced that it will soon launch YAM tokens. YAM borrows from YFI's distribution model, and yam.finance distributes YAM tokens through eight mortgage pools (WETH, COMP, MKR, YFI, SNX, LEND, LINK, AMPL). The yam.finance team does not reserve any tokens and distributes them completely to the community. , but the contract is not audited.

YAM’s staking pool generated more than $15,000 worth of transaction fees within a few hours of its launch.

Jinse Finance’s exclusive analysis of Paypal’s cautious attitude towards “competing products” has “objective reasons” and subjectively should seek a change: Paypal’s chief financial officer expressed “more caution” and “not interested” in cryptocurrencies in an interview, the objective reasons There is, and it is quite tenable-the volatility of cryptocurrencies is too strong, which indeed expresses the concerns of many people. But the objective reasons for the attitude towards cryptocurrencies may not be enough. Subjectively, Paypal has been challenged by cryptocurrencies. Compared with PayPal, the handling fee of cryptocurrency is almost "free". In this case, Paypal also modified its service policy to increase transaction fees, causing more users to turn to cryptocurrency. Paypal’s business growth also seems to be lagging behind cryptocurrency-related services. Previously, Square Cash, an encrypted currency mobile payment application developed by Square, grew faster than PayPal’s Venmo, which also confirms this. Facing the challenge of "competing products", improving the competitiveness of traditional payment companies is already an important issue in front of them. Although the popularity of cryptocurrencies is not high, traditional companies should also carry out or accelerate the strategic layout of blockchain to improve security. Significant improvements have been made in performance, speed, and reduction of intermediary costs. [2018/5/17]

Then the YAM price took off and rose to $150. However, at 18:00 UTC on August 12, yam.finance was found to have a loophole in the elastic supply adjustment contract, which resulted in the minting of a large number of additional tokens during the elastic supply adjustment (rebase), and a total of about 700,000 US dollars of yCRV was locked. The yam.finance team appeals to Yam token holders to vote through emergency proposals to fix the bug by entrusting Yam Finance. It is required to entrust about 160,000 YAM votes through yam.finance until 7:00 am UTC time on August 13.

Because there are a lot of YAM in the Uniswap liquidity pool, they need to unstake and transfer, which causes Uniswap’s Ethereum fees to surge, reaching a small peak at 20:00 UTC on August 12, and reaching a peak around 7:00 UTC on August 13. highest value.

But YAM's problems don't stop there. Although the yam.finance team successfully announced the submission of a governance proposal at 07:27 UTC on August 13 to fix the bug before rebase at 08:00. However, due to potential defects, at 08:00 UTC on August 13, the core developer of Yam Finance, belmore, announced on Twitter that the repair failed. Uniswap transaction fees started to drop after peaking.

If you stretch the time, you will find that Uniswap’s fees on August 12-13 have increased significantly compared to usual. Total Uniswap fees reached nearly $100,000 in an hour. Uniswap, on the other hand, had an hourly fee of less than $10,000 for most of July. the

Uniswap has the highest fees on average, reaching a maximum of $16. The YAM pool followed, briefly surpassing $16. As average fees on Uniswap and YAM rose, average fees on Ethereum rose, peaking at 08:00 UTC on August 13. the

Around 4:00 UTC on August 13, ETH fees soared more than $20 for a short time, because the MYX Network project issued tokens at that time.

The latest news is that the blockchain security company PeckShield officially completed the security audit of the YAM 2.0 migration smart contract on August 19. Yam Finance plans to migrate the YAM 1.0 contract to YAM 2.0, and the YAM tokens of the currency holders will be mapped 1:1, in preparation for the restart of YAM.

The madness brought by YAM and DeFi has made the total daily transaction fee of Ethereum exceed the historical high during the ICO period. People will naturally compare DeFi and ICO.

Unlike ICO, investors need to interact with complex DeFi smart contracts. This, coupled with high fees, makes it difficult for retail investors to participate in the DeFi boom. Ethereum must have a solution to reduce transaction fees, otherwise DeFi will become a whale game.

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