This article was first published on Genesis Vision Blog - Medium
As you all know, our top priority is our clients — we thrive to ensure we give you the ultimate experience when using our platform. As the cryptocurrency space gains demand, the growing pains have also become more visible. The most obvious being Ethereum transaction costs. We have always kept in mind the high fees, but during our DeFi development we had to adapt and change our strategy. A Live DeFi platform on Ethereum with such fees would be detrimental to our protocol, so we had to make some adjustments — for both ourselves and for our users.
To put this into perspective, a Uniswap transaction currently costs over $100, while even a simple ERC-20 transfer is ~ $50. These operations are vital for an Asset Management platform like ours and admittedly — in the current state with Ethereum, our model is simply unsustainable.
We imagine Genesis Vision Managers not being happy knowing they need around $5000 just for the gas to cover the deployment operations alone, to run a Program.
We announced that the top 10 Funds and 10 Programs will be migrated to Ethereum on launch, but this operation now costs over $50,000 to simply deploy and initialize smart contracts. We also feel such an expense like this could be utilized better.
In order to reduce operational gas costs, we worked on a number of workaround solutions including our own liquidity and operations batching, but even that — unfortunately doesn’t help much.
This environment forces us to amend our initial plans accordingly. At the moment the development of all Ethereum components, except the assets and liquidity bridges solutions — will be halted as we switch over to alternative blockchains (BSC and xDai).
Don’t be put off just yet! We are not completely abandoning our plans with Ethereum, we are just holding fire at least until things get a little more sustainable. We know ...
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Genesis Vision Blog - Medium