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Small-scale investors, remember that gas fees should always be factored into investment decisions and timing.
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As a prelude to my point, I'm a big investor in DEX governance tokens. PancakeSwap, SpookySwap, and QuickSwap are my big 3 right now (I know, RIP my wallet but everyone could say the same right now).

Since these investments offer pretty solid interest rates for staking, I obviously want to maximize my time in staking, so I try to invest as often as possible. If I have $100 sitting around I want it in as quickly as possible.

With investments this small, though, even BSC or Fantom gas fees can easily eat up 1% of your investment. I get mined Eth sent to my wallet every .005 mined, so there are a lot of opportunities for me to invest 20ish bucks.

Paying gas to send cross-chain (pretty negligible since it's on MATIC), convert to CAKE/BOO, and then stake that amount will often cost 30 or 40 cents at least, not to mention LP fees. That's 2% of the total balance, and at 50% APR will take something like 12 days to regain. In other words, I'd be better off waiting for another $20 worth of ETH and paying the same gas fees for twice the investment.

Due to this I end up investing in QuickSwap with my Eth most of the time even though it has lower APR than the other two, since it ends up being more efficient with small amounts.

I highly recommend doing the maths yourself before you invest in anything, as you just might find you're better off holding and accumulating cash or investing in a Polygon dApp. And for the love of God stay away from Ethereum until it goes POS unless you're working with 5-figures or more.

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2 years ago