Uniswap User Accidentally Paid 23 Ether ($9500) for a $120 Transaction

News / 05.11.2020

According to a Reddit post, a Uniswap user has accidentally paid 23 Ether for a transaction of $120. These 23 Ethers are currently worth $9747. As per the user, the mistake happened while making the transaction on Uniswap using the Metamask wallet.

How did it happen?

While making the transaction via Metamask, the user accidentally typed in the “Gas Price” field instead of “Gas Limit.” Gas price stands for the amount of Ether you are willing to pay for each unit of gas. Whereas the Gas limit button denotes the maximum amount of gas units you are willing to spend, regardless of the transaction’s total amount. The user intended to change the gas limit but accidentally changed the gas price. This resulted in him paying approx 23 Ethers in transaction fees.

Chances of Recovery

By the time user realized his mistake, the transaction was already mined on the ledger. Therefore, the chances of him recovering this money are close to zero. However, if the miner who mined that specific transaction chooses to return the amount, the user could recover the money.

Rise and fall of DeFi

With the rise of the DeFi ecosystem built on top of Ethereum blockchain, the transaction fee is skyrocketing. Many users are starting to get critical of Ethereum for its ever-increasing transaction costs. The scalability has been a major issue for Ethereum as well as Bitcoin. The Ethereum community aims to solve this with Eth 2.0. Whereas the Lightning Network is trying to solve the scalability issues for the Bitcoin network.

Ethereum miners, on the other hand, are reaping huge benefits due to the rise of DeFi. The miners made whooping $169 million just in September. Most of it can be attributed to this year’s rise and fall of DeFi protocols. In September, the DeFi space witnessed a massive 122% growth in total trading volume.

Whereas in October,  the trading volume dropped 32%, reports Coingecko. All of the decentralized exchanges were unable to keep the momentum of their previous month’s growth rate. Uniswap alone suffered around 59% of the dip in DEX trading volume. However, Uniswap continues to rule the DEX space with a three percent rise in market dominance. The exchange’s market share stands at a massive 69% in October 2020.

Narender is a digital nomad & crypto writer. He's currently living in this small Himalayan village with a perfect balance of wilderness and an LTE network. His love for Chai and mountains precedes everything. Often wonders about things like, "why $1 earned through leverage feels 100x better than $1 earned selling your time?"