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How Investors Can Protect Themselves From the Hidden DeFi Costs in 2024

Benzinga ·  Apr 5 17:22

By Sunil Srivatsa, founder and CEO of Storm Labs

DeFi offers exciting possibilities, but, beyond the upfront gas fees, there are hidden costs that can significantly eat into your potential returns.

Unlike traditional payment processors likeVisa(NYSE:V) andMastercard(NYSE:MA) with fixed fees, smart contract blockchains operate differently. On platforms likeEthereum(CRYPTO: ETH),Solana (CRYPTO: SOL), and EVM-compatible chains, gas fees are dynamic. This means the cost to process your transaction fluctuates based on network congestion and the priority you set for completion. Currently, the average gas fee, which is the cost of facilitating a...

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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