How hot is DeFi? YAM Makes Ethereum Transaction Fees Break Records

Editor's Note: This article comes fromGolden Finance, reprinted by Odaily with authorization.

Editor's Note: This article comes from

Golden Finance

Golden Finance

, reprinted by Odaily with authorization.

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.

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 .

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.

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 release.

Then the YAM price took off, rising 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 calls on Yam token holders to vote for an emergency proposal 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 around 7:00 UTC on August 13 highest value.ETHBut 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.

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.

Around 4:00 UTC on August 13