The fees that must be paid to transact on the Ethereum network are often an obstacle for users. It is that, in certain cases, the costs are too high to carry out simple operations or movements of funds in small amounts.
Nevertheless, there are times when the network is less congested and commissions go down. According to promoter Evan van Ness, this is the moment to take advantage of to complete those pending tasks at a lower cost.
At the time of writing this article, commissions on the Ethereum network register a maximum value of one dollar, as reflected in the CriptoNoticias price index. The trend is confirmed by site statistics ycharts.comwhich show that in the last five days the average rate was below the dollar.
Taking advantage of this circumstance, van Ness listed several actions that could be taken at this time. He shared his ideas through a twitter threadand then we will delve into some of them.
1. Move funds to second layers of Ethereum
The first action that Evan van Ness recommends is transfer funds to the second layers of Ethereum. For example, it could be done towards the Arbitrum, Optimism or zkSync rollups.
As reported in CriptoNoticias, many actors in the Ethereum ecosystem, including Vitalik Buterin himself, co-creator of the network, they think that their future is directly linked to these scalability solutionsas they reduce commission payments and transaction delays.
Van Ness thinks so too. That’s why, advise moving funds while it is cheap to do so. “You will thank yourself in the future,” she assures.
2. Create addresses in Tornado Cash
Tornado Cash is a transaction mixer for Ethereum and other networks. Its main function is to enhance privacy when operating on this networkand it achieves this through the combination of many transactions, in such a way that it is extremely complex to identify who sends funds and who receives them.
To use Tornado Cash, you need create an address in this decentralized application (dApp) and deposit funds in it. Then, when they are removed, the possibility of tracking them decreases considerably, since it is mixed with hundreds or thousands of other identical transactions.
Both to enter and to exit the protocol, it is necessary to pay commissions. If you intend to use Tornado Cash in Ethereum, when the rates go down, it is a good time to fund the address in the dApp.
3. Renew your ENS addresses
ENS (Ethereum Name Services) are domains within the Ethereum network. They are used to designate names to wallet addresses, hashes and other identifiers. Before they were auctioned, but now the ENS are rented per year.
Of course, such rent demands the payment of a commission to carry out the transaction. In this time of low fees on Ethereum, it’s a good idea to renew all domains or even buy new ones, suggests van Ness.
4. Exchange remaining tokens for ETH
Do you have small amounts of tokens as a result of previous transactions on exchanges or decentralized finance (DeFi) protocols? In general, it is not profitable to exchange them for ETH because the fee that would have to be paid in the transaction would be greater than the value of the exchange itself.
However, in times of low fees, the minimum amount for which “it is worth” doing one of these operations is reduced. Therefore, it may be time to check the wallets well in search of opportunities. Van Ness even recommends a tool, DustSweeper, to do it for minimal fees.
5.Experience other things on Ethereum
Finally, there are more actions that can be done on Ethereum cheaply these days. For example, create a DSProxy. This is a contract that is linked to an Ethereum wallet in order to create a CDP (collateralized debt position) in the Maker protocol.
In a nutshell, the CDP allows depositing cryptocurrencies to issue the stablecoin DAI (DAI) in return. Proxy contracts are also created in other protocols, not just Maker.
Likewise, it may be a good option to make pending payments or claim airdrops at this time, advises van Ness. In short, everything that involves payment of commissions and does not represent large expenses is a good option in the current circumstances.