An Impatient Uniswap Trader Spends $9500 fees on $120 Transaction

By November 6, 2020Ethereum
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  • He was worried that the MetaMask wallet didn’t populate the Gas Limit input box with the right amount in his previous transaction
  • MetaMask has to introduce a confirmation pop-up whenever the given Gas Price goes higher than the recommended price

ProudBitcoiner, a Reddit user, posted that he had mistakenly paid a transaction fee of 23.5172 Ethereum, which is equivalent to $9500, for a $120 transaction in DeFi protocol Uniswap. The paid costs were about 80 times higher than the transaction fee. The blunder happened when the user tried to exchange 0.2955 WITH (Wrapped Ethereum) for 531 CHI (Kaigas Token), which is equivalent to $120 in the DeFi exchange Uniswap.

It is said that the average fee is about 0.0022 ETH, which equals $1. Higher transaction fees are collected from the customers when they wish to process the transaction quickly. In such a situation, the users have to opt for the manual route. This is the point where the user committed a blunder mistake. He was confused by the ‘Gas Limit’ and ‘Gas Price’ input boxes in the MetaMask wallet.

According to his post, he was worried that the MetaMask wallet didn’t populate the Gas Limit input box with the right amount in his previous transaction. Unfortunately, it turned out as a failed transaction. So he decided to do it manually in his next trade. He gave the input as 200,000 in the Gas Price field instead of giving in the Gas Limit field. So, he paid 200,000 GWEI for this transaction.

Ethereum network fee is called Gas. The unit to express Gas is called Gewi. 1 Gwei is equivalent to one billionth of an Ethereum. Uniswap allows the users to trade directly from their wallets, which acts as an exchange for ERC-20 tokens. This makes the user manually type the gas price of their wish to pay for a particular transaction. It is also said that the user has downloaded MetaMask recently, and the version is 8.1.2. He didn’t have any problems regarding the same before.

Mcgillby, a Redditor, said that MetaMask has to introduce a confirmation pop-up whenever the given Gas Price goes higher than the recommended price calculated by the wallet. When asked for such a confirmation, the human error could be avoided. This is not the first time such an incident is happening, and the price is also not that high. In June 2020, the same incident occurred where two transactions of each $2.6M were spent for just $130 Ether. It is no doubt that this would have been an excellent lesson for all the crypto investors, and it is mandatory to check twice before giving the final confirmation.

MetaMask has to introduce a confirmation pop-up […]

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