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Gas fee

The transaction fee paid to a blockchain network to process a transfer or smart-contract interaction.

Gas is priced by network demand. On Ethereum a simple transfer might cost a dollar or fifty dollars depending on congestion; complex defi transactions cost more. Layer-2 networks and other chains charge cents.

For active dex traders, gas is a real cost that can exceed the bid-ask-spread equivalent on small trades.

Example: during a busy period a token swap on Ethereum mainnet costs $35 in gas. On a $500 trade that is a 7% fee before slippage.

Related: dex, defi, wallet, on-chain

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