Hey guys, just wanted to send out a quick note about what I saw looking at 1inch today. It's a Defi trading platform that I've heard a lot about but haven't ever actually used. The last time I wanted to buy something (I think it was SAND), 1inch was one of the cheapest ways to get it. But the gas prices made it too expensive for what I thought it was worth.
But I was on Medium today and noticed 1inch is sponsoring a new trading pair for yield farms. So I went over to the site and saw what it was about. WXT seems like a legit token, and this being a pair that 1inch are sponsoring, I'm not worried about rug pulls. And 974% sounds pretty good!
So first I needed some WXT. I thought I would trade on the site, so I tried that out. And to do an exchange would cost $445!!
And that's with "lowest gas cost" 😳 So that wasn't going to work. I knew that I could buy them over at KuCoin so I wasn't going to do the trade here. But I thought this little bit was funny:
Yeah, SO CHEAP. Much savings.
You'd really be needed to be doing massive transactions to offset the gas price ... or think the prices will continue to moon for a long time still. Reminds me of people spending mad cash to buy houses while the prices are skyrocketing.
Then I thought, before buying some WXT, I wonder what the fees would be to get into the pool. So I go over to the pool and see that I need to first unlock each of the tokens so that 1inch can spend them. The cost for each:
So that's around $120 to unlock both, and then I would need to deposit each of them into the pool (no idea how much that is), and THEN deposit the liquidity pool tokens into the farm. If it's $60 each transaction, that totals $60 x 5 = $300.
Hmmm ... how much would I make if I put in $1000?
So $50 a week, I would break even in 1½ months. That doesn't make any sense. I played around with some more numbers, and if I put in $10,000 I would break even in 5 days.
People are getting wreckd
I was in the 1inch discord channel getting help connecting my Ledger to 1inch, and everyone was trying to buy SHIBU or other shit coins:
Yes my friend, it really did.
This multi-step process, each step costing massive gas prices seems to really be messing with people.
People are spending all of their ETH to buy shitcoins on defi networks where all the money goes to the Ethereum miners. And they don't even realize it until they've dumped in a hundred dollars.
If your're bored, the 1inch discord is full of gallows humor
Poor guy probably just likes puppies
Now I have regrets over not doing all this when gas prices were lower last week.
Who does this?
Image by Olya Adamovich from Pixabay
Are there people using these defi platforms who actually know what they're doing? Or is is full of poor saps who just heard about this new coin and want some?
The ironic part is that the high gas fees seem to be from all the people buying SHIB. People are getting wrecked in gas before getting wrecked by the drop in price.
OK so I admit it, I FOMO'd in.
Image by kazzzsat from Pixabay
This is what $100 buys you in SHIB:
Yes, I now own 3 MILLION of this shitcoin. SHIB: The coin for people who think DOGE is too expensive.
Life is crazy. I may get wrecked by this coin, but I'm not going to get wrecked by crazy gas prices.