In modern day, Ethereum gas fees are an inevitable unpleasantry that all users have to deal with. The latest data from Etherscan indicate that the Ethereum gas fee is a serious hole in many traders’ pockets, with ERC-20 token transfer requiring an average of almost $13 USD per transaction, while smart-contract heavy operations such as swapping on DEX such as Uniswap would cost an average of almost $40 per transaction. Uniswap liquidity farmers are not exempt from the high gas fee, with a Uniswap LP transaction — either adding or removing — costing an average of about $35 per transaction. In total, users of the Ethereum network spend about $134,000 US Dollars on gas fees alone per day or just above 4 million US Dollars per month.
XFai has developed the definitive tooling to save users from unnecessarily hefty gas fees, often raised to the highest level due to multiple DeFi transactions, especially when they are in sequence during farming. Etherscan data indicates that around 23% of all gas fees spent are used either on Uniswap or Metamask, with an additional 5% of all gas fees spent on other DEXs. The data shows that DeFi is the main factor driving up the gas fee, costing everyone more to complete any transaction. With XFai, users can not only save on gas fee, but they benefit from a lower risk of failed transactions, earn high APY on liquidity farming, and are able to make impermanent gain.
XFai to Lower Gas Fee, and Increase APY
During the public sale of XFai’s native XFIT token, participating users will be able to arrive directly on XFai to purchase the XFIT token and automatically add their newly-purchased tokens into the liquidity mining pool. The event that includes both the public sale of XFIT and the generation of liquidity is appropriately named a Liquidity Generation Event, or LGE. The much anticipated XFai LGE is scheduled for April 8, 2021.
In all other cases of buying a specific type of token and adding it to the liquidity mining pool, there are a minimum of 4 transactions involved. Each of these 4 transactions require a gas fee, without a guarantee that the transaction will be successful. If a transaction fails, the gas fee is already spent and the user is left with no choice other than spending an additional sum of money to finish a transaction to which he or she has already committed.
XFai’s innovative technology allows these multiples of transactions to be combined into a single step, resulting in a single transaction that only requires one gas fee. The result has a force multiplier effect. Since there is only one transaction, the possibility of a failed transaction is nearly zero. A single transaction also means that users can save up to 75% of the normal gas fee required to participate in liquidity mining. The lower amount of transactions stemming from liquidity mining would free up more space within the Ethereum blockchain, reducing the burden of the network and thus decreasing the required gas fee amount to fuel each transaction.
With lower gas fees involved in liquidity mining, participating users can also enjoy increased APY as they have spent significantly less to add their tokens in liquidity mining. This results in what we believe is unique to XFai — impermanent gain.
Impermanent Gain, Powered by XFai
Impermanent gain is an unfamiliar term within the DeFi industry, and all for the wrong reasons. Impermanent loss are the words mainly associated with liquidity mining, to indicate that the miners have actually lost money by participating in liquidity mining, often times so much so that they would have made more money if they did not do anything with their tokens other than holding it in their wallets. So what, on the other hand, is impermanent gain?
At XFai, the reduced gas cost and anti-slippage mechanism allows liquidity mining participants to significantly save on operational costs that often lead to impermanent loss. Moreover, XFai’s true-APY allows liquidity miners to directly see the real APY of their liquidity mining operations, compared to the skewed traditional method of calculating the ratio of the token price and the liquidity pool value without showing the composition of the liquidity pool. This empowers liquidity miners to reduce their costs while increasing their earnings, resulting in impermanent gain — indicating that the result will almost always be more profitable than holding the token in their wallets.
Open to Anyone, Especially First Timers
At XFai, we are committed to making the DeFi and the wider cryptocurrency space more inclusive to both small and mid-cap tokens and those who may not be tech-savvy. This is why the XFai LGE is set to chart a new standard of how tokens are offered to the public, with its easy, one-click method with far-reaching benefits.
The XFai LGE, set to go live on April 8, is designed with feasibility and simplicity in mind. The user interface is intuitively layed out, while the involved operations are combined into one single click. We believe this will result in the opportunity for even those who have never participated in liquidity mining to join in a stress-free manner, and reap the benefits of high APY and the explosive potential of XFIT.
We invite everyone to join XFai in making DeFi more accessible, open, and economically empowering, starting with the XFai LGE.
XFai develops tooling for the DeFi space, graphing it to build game-changing products. The XFai DLO is set to invite mid and small-cap tokens to start earning APY on their token holdings, while the XFai LGE is set to become industry-first in providing a more efficient, transparent, and fair way for everyone to get involved at an early stage. The LGE for XFai’s native token, XFIT, is set to launch on 15th April 2021. We invite everyone to join the DeFi revolution, spearheaded by XFai.