Cheaper Gas With CivTrade

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  1. CIVILIZATION
  2. Civilization $CIV: Decentralized Investing for Everyone

CIVILIZATION

Up to 84% gas savings thanks to the Chainlink Keepers integration

Why saving gas is paramount

DeFi is transforming finance through the use of Decentralized Exchanges (DEXs), allowing users to trade without intermediaries like in traditional finance and CEXs. However, every transaction made incurs a gas fee to validate the transaction. In some cases, gas fees are very high, but it all depends on a blockchain’s architecture and usage rates. How can traders best navigate high gas fees in the DeFi space? Is this hurdle slowing down the adoption of decentralized finance?

“Gas” is a general term to denote the cost required for a user to interact and transact with a blockchain network. Gas fees are used for two things: one, to compensate miners for the energy required to verify a transaction, and two, to provide a layer of security to blockchain networks by disincentivizing malicious users to spam the network by the associated “cost to play.”

Despite being the means of securing the network, as well as a remuneration tool for miners, many Ethereum network users have an unfavorable view of gas fees. This is because gas fees have reached as high as several thousands of dollars for a single transaction when the network is highly congested.

Commissions on the Ethereum network are based on the gas price and the gas limit: while the gas limit is quite stable and is relative to the complexity of the transaction (e.g., interacting with a smart contract will be more expensive than a simple transaction), the gas price fluctuates drastically.

When there are too many transactions on the network, blocks start to fill up and miners prioritize transactions with higher gas prices. If the user sets a gas price or gas limit too low, their transaction more than likely will not be successfully processed. They may even lose the commission initially paid.

Major DEXs like Uniswap — the most used in DeFi, use liquidity pools and an automated market maker model to match orders instead of using order books like centralized exchanges. This means that all transactions occur directly on the blockchain.

Therefore, commissions on Uniswap and other Ethereum-based exchanges incurred by traders increase along with the use of the Ethereum network itself. A simple, single token exchange on Uniswap can cost hundreds of dollars in gas commissions alone, a hurdle that makes it difficult for people trading smaller amounts of capital to continually bear . In addition, making large trades can bring with it other complications, as the larger the exchange relative to the liquidity pool, the worse the exchange rate will be due to things like price impact, slippage, the risk of front running bots, and a lack of control of target prices.

How can traders avoid these problems without giving up the benefits of DeFi? Is there a solution?

Solving the gas problem with Chainlink Keepers and CivTrade

Welcome to CivTrade

Yes. Civilization, the first fully community-driven project aiming to build the first decentralized investment fund, has managed to solve the gas problem with the help of CivTrade and Chainlink Keepers.

Civilization decided to integrate Chainlink Keepers because they are operated by the same professional DevOps teams that secure tens of billions of dollars for leading DeFi applications.

By adding Chainlink Keepers to CivTrade’s tech stack, we are able to offer our users fully automated limit order functionality with extremely strong security, reliability, and performance guarantees for near real-time trade execution.

CivTrade integrated Chainlink Keepers to enable users toopenlimit trade positions.. Chainlink Keepers use off-chain computation to continually monitor the Ethereum blockchain in real-time, optimizing the execution of each trade in specially designed backend liquidity pools. Once a limit trade is executed, users can easily access their funds with just a few clicks.

Chainlink Keepers use a rotating node selection process that prevents gas price auction wars and stabilizes costs.

Without Chainlink Keepers, users would have to constantly monitor the price of the assets they want to trade, hoping that the market will reach their desired price before manually closing the position. This creates a terrible user experience, so pushing the trade execution process onto users was a non-starter for the Civilization team.

To automate trade execution, the Keeper notifies the CivTrade smart contract of market conditions in real-time so that it can monitor whether or not an asset has hit a user’s target price threshold. Since smart contracts are not natively aware of off-chain conditions, they require an on-chain transaction to trigger execution. This is because smart contracts are not actually autonomous, but instead are “asleep” by default and need to be “woken up” by an on-chain transaction in order to run their coded logic.

One option would have been to run an off-chain server to trigger this process. However, this would have required developers to build, manage, and deploy a DevOps solution. Not only would this service have been centralized and prone to downtime, it would also have added significant developer time and costs that can now instead be focused on building new products and features.

Civilization chose to integrate Chainlink Keepers as a decentralized transaction automation service that triggers key smart contract functions when CivTrade-specific conditions are met. This provides users greater assurance that all limit order positions are continuously monitored and optimally executed in real-time, without any manual interactions from users or the Civilization team.

CivTrade offers more trade types (market and limit orders), smarter routing, and cheaper gas than Uniswap or any other DEX. It also brings with it DeFi world’s first fully automated order book.

The results to date on the first 15 million of trades have shown the following:

  • 37% cheaper for Limit Trade/Faster vs adding Uniswap v3 liquidity
  • 84% cheaper for Limit Trade/Cheaper vs traditional v3 swap
  • 4% cheaper for Market Trade vs traditional Uniswap

In addition, the use of CivTrade technology supported by Chainlink Keeper has allowed traders to achieve:

  • 12% average gain versus the same swap un Uniswap
  • 0.79%+ average LP fees earned by traders that use CivTrade
  • 0 in slippage, 0 in price impact, 0 in bots, 0 in liquidity payments

In light of these results, Civilization launched its gas challenge a few weeks ago, with a grand prize of 1 million dollars that nobody was able to win. In order to win the challenge, a DeFi ERC-20 protocol had to be identified that could deliver higher gas savings than CivTrade.

The introduction of a technology like CivTrade sets the stage to bridge the gap between CEX and DEX and be a watershed for mass adoption. Check it out here and change your trading life!

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Happy Civilization building

PS: To learn more about Civilization, please read our vision blog post:

About Civilization

Civilization is the world’s first Decentralized Investment Fund: owned and managed directly by its own investors. Token CIV: the Community Investment Vehicle.

Its CivTrade traded over 15 million, earning 1,718 extra per trade while saving -35% gas versus Uniswap. The ProView upgrade achieved functional equivalence with Binance, but fully DeX / DeFi.

Also branded the Burning Man of Finance, Civilization now plans CivFarm and CivFund, to make the benefits of Decentralized Finance accessible to everyone. Any questions? Please join the global Telegram group.

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