If there's one thing that Hive and Leo have spoilt us with, it is the fact that we don't have to pay any transaction fees. One transaction or ten transactions, they all cost the same, $0.00.
That's not the case with a lot of other blockchains, and while the fees on Binance Smart Chain aren't the highest, they can slowly eat away at your returns.
If you are using MetaMask, click the three dots next to your account name and select 'View In Explorer'. This will open the BscScan page for your account.
Filter for only completed transactions and then you can download the report as a CSV file which you can open in MS Excel.
Scroll to the right of the report and you will see 2 columns:
I have made 55 completed transactions on Cub Finance for a total of 3.8 BNB. In terms of fees, i have spent 0.068 BNB. This means i've paid about 1.7% worth of my transacted amount in fees. Doesn't seem too bad on the surface.
So far so good. 1.7% is a reasonable rate to pay for fees. Not perfect but reasonable. Let's look at the fees in terms of dollars and on their own, though.
I've spent around $17.60 in fees on 55 transactions. The average fee comes up to around $0.32. The minimum fee was $0.05 and the maximum was $0.56. What this shows is that not caring about the fee can come back to bite you. That's a 10x difference.
Look, when doing large amounts, these $0.30 and $0.50 don't really matter. But with yields now lower and trying to reinvest into a liquidity pool daily, you got to watch the fees.
Harvesting the den, exchanging it for the liquidity pair, creating the paired token, adding to the liquidity pool - these are 4 transactions that need to be done daily.
If you make $10 worth of CUB a day, paying $1.20 - $2 eats 12% - 20% of your returns. Another possibility is to set a low GAS fee threshold but then you'll face a lot of frustration trying to confirm transactions.
Anyway, this is just something to bear in mind as we dive into DeFi.
