We love Ethereum, but its current high gas fees are preventing smaller players from using the fertile lands of #DeFi.
Thanks to the BINANCE Smart Chain there is finally a way for smaller players to take advantage of yield farming and other fun Defi stuff.
If you are a small-time farmer, Binance Smart Chain is where you need to be right now!
Farming On Harvest Finance - Ethereum vs. Binance Smart Chain
Harvest Finance recently integrated Binance Smart Chain strategies - allowing you to farm these fancy yields.
The difference in fee sizes is quite staggering. It literally reduces the transaction fee from over $50 to beneath $1.
Let’s do a little experiment.
I will try and farm 50 $DAI on Harvest Finance using both the Etheruem Network and the Binance Smart Chain and show you the exact fees associated with each.
First, let’s start with the Ethereum Network itself.
You can farm $DAI as a single-sided asset and earn an APY of 18.24% on the Ethereum Network. Here, you can see I’m about to add 50 $DAI to the farming strategy. Let’s see how much the fees will cost.
Surprisingly, the fee for depositing the $DAI into the Harvest Finance farming strategy was just a small $12.93;
What we need to remember here was that I was doing this experiment at a time when Ethereum Gas fees were SUPER low. Right now, the average gas is around 50 GEWI. Looking at the Ethereum Gas chart I posted in the introduction, you can see the average GAS fee over the past few months has been around 150 GEWI (even higher than that).
So, typically, we can expect the fee for this transaction to be 3-5 times higher than what you see on the screenshot - putting it around the $50 level.
After the first transaction has been confirmed, another fee must be paid to allow for staking on the network. This transaction was a little smaller and cost $4.33;
So in total, the fees associated with yield farming on the Ethereum network cost a total of $17.26 - and that’s on the lowest Gas fee week in months.
Now, let’s compare this with farming $DAI on Harvest Finance through the Binance Smart Chain;
Yield Farming through $DAI on BSC yields 41.37% APY. Let’s see how much the gas fees are associated with depositing 50 $DAI amount to.
The first transaction to deposit the $DAI into Harvest Finance cost a total of $0.33;
After that, another transaction must be submitted to allow staking of $DAI into Harvest Finance. This cost a total of $0.40;
So in total, the two transactions cost $0.73.
Comparing them both;
Ethereum total cost: $17.26
Binance Smart Chain total cost: $0.73
Difference between the two = $16.53.
In other words, #BSC fees are now more than 95% lower than on #ETH.
