Fee reduction tips

To process a transaction on Ethereum (Layer 1), you need to pay a gas fee. More specifically, the fee to offset the computational effect required to execute a specific operation on the Ethereum network, multiplied by the gwei, which is a representation of the current network congestion. Simply put, the gas fee offsets the energy costs used to process your transaction, multiplied by a representation of how many other people are also trying to process transactions. The more people making transactions, the higher the gas fee.

Since each Ethereum Layer 1 (L1) transaction requires computational resources to execute, each transaction requires a fee. The transaction will only execute if enough funds have been sent to cover the transaction’s gas fee.

Why do I need to pay a setup fee?

The setup fee is required to pay the gas for deploying the wallet’s smart contract on L1 of the Ethereum network.

Does Loopring profit from gas fees?

No, all the L1 gas fees for executing transactions are paid to Ethereum block miners.

How can I reduce my gas fees?

You can reduce the overall fee by submitting transactions when network congestion is low. See the following for more details on gas and Ethereum costs:

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