XFai to Save Users 4 Million USD per Month

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

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

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

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.

About XFai

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XFai develops tooling for the DeFi space – we graph the DeFi space to build game-changing products. Starting with the DLO: the DEX Liquidity Oracle