Gas tokens as a fee reduction tool

Quick Take

  • High Ethereum gas price leads to an increase in gas tokens’ popularity.
  • The CHI token from 1inch is most often used, despite its primary users being on-chain arbitrageurs.
  • The amount of gas used in transactions to obtain a gas refund in the future is less than one percent of the total gas used.
  • There are both ordinary speculators on the gas tokens market, expecting a doubling in the gas price for break-even, and arbitrage bots.
The Summer of DeFi offered lots of profit opportunities which resulted in an all-time high average gas price on Ethereum. However, this situation could not last forever, and APYs began to decline from five-digit to double-digit. One of the reasons for the drop in profitability was more frequent rug pulls and hacks of smart contracts. […]

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