This week, Flipside Crypto analyzes the best time of day to collect rewards on a DeFi lending protocol.
Alchemix is a DeFi lending protocol that presents a new way of paying back debt. It uses the yield earned from the deposit to amortize the users’ debt. The longer you leave your deposit, the more yield you can earn and consequently have more of your loan paid back.
At a high level, Alchemix works like this:
- You make a deposit (your collateral) to the protocol;
- Up to 50% of your collateral’s value is available to you as a loan;
- Your deposit earns interest over time, which automatically pays off your loan.
And you can, of course, claim some of the yield that your collateral has earned over time.
One major downside of Alchemix at the moment is that, being built on Ethereum, every transaction is associated with high gas fees.
And some hours are worse than others. As seen in the graph below, Ethereum gas fees reached $148 USD today, Apr. 19 at 2pm UTC.
To minimize this cost, @ryanl created a tool that generates the best times to transact on Ethereum, by averaging the past five days’ transaction cost and listing the times of day that come in under that average.
Since the day of the week can affect the average transaction fee, a five-day period allows for a combination of weekdays and weekends while still representing current trends in the market. (See https://ethereumprice.org/gas/)
An example output looks like this:
The tool can be accessed here: https://github.com/CryptoLionR/ETH-Fee-Timing-Tool
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