Please please please, I really would like to know by someone knowledgeable. I looked at the other responses but I still do not truly understand. It just doesn't make sense why anyone would want ETH to be this high. Bought a bunch a while ago and locked it in a smart contract before the last bull run years ago. Sold most of it now, but I still want to keep using the network, as much of the sales went to ERC20 tokens. Now I am basically locked out of swapping it like many others. I am trying to execute larger trades but the fees for swapping are freaking ridiculous ($5000+). To me it seems there is no reason to participate, unless I am doing something wrong.

Is Ethereum 2.0 going to solve this? I'm still kind of a noob about ETH2.0.

I just cant find any good concrete information and I have been trying to FOBM. Never actually asked a question before until now.

Thanks in advance.


1 Answer 1


There are three fees that apply when you make a trade on Uniswap. I don't know which fee you are referring to so I will break them all down.

  1. Gas fee. This is the fee that you pay so that miners will include your transaction in a block. The gas fees have been very high lately simply because a lot of people are using Ethereum blockchain and there is only a certain amount of transactions that can be included in any given block (calculated by gas). It is definitely not 5000$, but depending on network usage, maybe between 10-50$.

  2. Liquidity pool fee. This is a fee that you pay to the Uniswap pair (ie. ETH-USDT). It is equal 0.3% for each pair your swap goes through. Unless you trade very large amounts, this should not be 5000$.

  3. Slippage. Slippage is the price change that your swap causes in a given pair. If you make a large trade in proportion to the liquidity in the pool, your swap will cause a large shift in price. For instance, if you make a 10000$ swap in a pair that contains only 50000$ in liquidity, your trade will cause a very high slippage that may be the 5000$ you are referring to. Uniswap, like most AMM, is only good for trades that are small in comparison to the liquidity pool used.

Eth 2.0 will only solve gas fee (#1). The other fees are inherent to how Uniswap work and will not be affected by Eth 2.0.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge you have read our privacy policy.

Not the answer you're looking for? Browse other questions tagged or ask your own question.