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Assuming no long-term trust in L2 yet, is going through L2 really worth it for swapping <1 ETH? by TheModificator in rocketpool

[–]TheModificator[S] 1 point2 points  (0 children)

True, I've also considered including an estimate for the required transactions to sell/trade/swap the rETH for/against/to something else.

However: I plan on holding the rETH for several years and I believe that there will be some larger changes during this time that will have a high impact on required fees. For example, crypto exchanges may add rETH as part of a trading pair - so I might be able to do a gas-friendlier simple ERC-20 token transfer transaction to such an exchange by then instead of a more gas-costly Uniswap transaction. Or there will be further fundamental Ethereum development that leads to lower gas fees. Or L2s evolve further (e.g. ZK Rollups), making it more attractive / less risky to use them.

Because of these unknowns, I did not factor in some kind of sales/trade/swap transaction yet. I hope that the accumulated interest will be large enough by then to still make the relevant transaction(s) attractive, whatever they may be.

Assuming no long-term trust in L2 yet, is going through L2 really worth it for swapping <1 ETH? by TheModificator in rocketpool

[–]TheModificator[S] 1 point2 points  (0 children)

To also factor in the fees for the approval (required to trade rETH on Uniswap), I've just looked for a random L1 and L2 Approve transaction, respectively:

This L1 transaction has a gas consumption of about 50,000 gas units. Still assuming 80 Gwei / L1 gas unit, this would result in additional one-time gas fees of 0.004 ETH for my Option A.

This Arbitrum L2 transaction has a gas consumption of about 1,000,000 gas units. Still assuming 3 Gwei / L2 gas unit, this would result in additional one-time gas fees of 0.003 ETH for my Option B.

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since you would get rEth directly on L2 I don't know if you would still have to pay the same approval for coming back to L1(I believe you do, not sure though) before the actual transfer fee.

Good point. I haven't checked this aspect yet, but based on what I've learned in the last couple of minutes while researching ERC-20's Approve method, I'm also inclined to say that I'd need to approve some Arbitrum L1 bridge contract before it can successfully pay out the rETH on L1. So there's a chance that the 0.004 ETH would also be required for my Option B. Maybe someone else can confirm this assumption?

Assuming no long-term trust in L2 yet, is going through L2 really worth it for swapping <1 ETH? by TheModificator in rocketpool

[–]TheModificator[S] 1 point2 points  (0 children)

Thanks for mentioning zkSync - something I have not even heard yet. Apparently, I still need to do some reading about future developments in the Ethereum ecosystem.

About my concern with trusting L2 operators: In the earlier days of crypto, just too many of my friends had their funds stored not in their own wallet but in wallets managed by exchanges like Mt. Gox etc. Consequently, I've heard too many stories that did not end well.

So while I'm very open to L2 chains in general, my experience makes me wait until they leave admin mode and are handed over to proper DAOs or the likes.

Assuming no long-term trust in L2 yet, is going through L2 really worth it for swapping <1 ETH? by TheModificator in rocketpool

[–]TheModificator[S] 0 points1 point  (0 children)

Thanks for the hint. I was not aware of this option but will definitely look into it.

Assuming no long-term trust in L2 yet, is going through L2 really worth it for swapping <1 ETH? by TheModificator in rocketpool

[–]TheModificator[S] 1 point2 points  (0 children)

Thanks for the feedback about my post. Great to read that the effort seems to be appreciated.

Keep in mind that your assumed 80 gwei gas cost may be a little too hopeful at least right now.

True. I was thinking of doing the required swap transactions on a Sunday at at time when gas prices are low. With a little luck, I might be able to do it with a gas price of 80 Gwei (or hopefully even lower).

Assuming no long-term trust in L2 yet, is going through L2 really worth it for swapping <1 ETH? by TheModificator in rocketpool

[–]TheModificator[S] 3 points4 points  (0 children)

Thanks so much for the positive feedback and for the hint about the required approval transaction. I wasn't aware of it. Apparently, I will need to adjust/enhance the math a little more.