Automatic CHI Gas Token accumulation when gas prices are low.
To get started, all you need to do is visit HAL, connect with Metamask and create an account. Then you specify your Gas Price Trigger, e.g. 20 Gwei below the current average gas price. This is the condition under which you want your CHI to be automatically minted and sent to your Metamask account.
In the same transaction, simply submit some ETH as deposit on Gelato to cover your future transactions costs and you are done! For a more in-depth guide on how to use HAL’s web interface, please follow their guide.
What is HAL?
HAL is a 1-click-setup IFTTT for Ethereum, featuring dApp-specific integrations with webhooks, Discord, Slack, Telegram, Twitter, and emails. Using new Recipes you can create and share your favorite triggers in a new and collaborative way!
Using Gelato, HAL now also offers on-chain triggers and actions such as the gas token accumulator described in this article! More cool features on HAL are soon to be released!
Why accumulate CHI?
The average gas price on Ethereum has skyrocketed in recent months to over 100 Gwei, due to the increasing demand for Defi projects and their associated yield farming programs. This increase in demand led to transaction fees on Ethereum becoming very expensive, sometimes costing users ~$50 for basic activities, such as trading on Decentralized Exchange aggregators. This makes a lot of use cases unsustainable for users that would like to e.g. trade small to medium sized amounts on DEXs.
However, there is a clever way how developers and their users can decrease their transaction costs and therefore keep their dApps more affordable: CHI.
CHI is a so-called “Gas Token” smart contract that was created by the 1inch team which allows users to significantly save on gas on Ethereum. CHI leverages a refund mechanism that was built into the EVM, in order to incentivise freeing up of storage space. What this boils down to is that you can burn CHI tokens when you send transactions on Ethereum, thereby reducing the total gas used by your transaction. Transaction cost on Ethereum equates to tx.gasUsed * tx.gasPrice. Therefore, by burning CHI, you will reduce your transaction cost (roughly) like so: (tx.gasUsed — gas refund from burning CHI) * gasPrice.
It only makes sense to get CHI when gas prices are low!
In order to burn CHI, however, you first need to mint CHI. Minting CHI is like buying the Token from the EVM itself and paying with gas for it. Therefore, the trick is to mint CHI when gas is cheaper and before a gas price spike. If you minted your CHI with a gas price that was higher than the gas price used by your transaction that burns the CHI, you might end up making a net loss. Therefore, the best strategy is to mint CHI every time the gas price hits a temporary low.
Problem: You don’t know when gas prices will be low.
Will you be able to be online to mint CHI just when the gas price is down for a brief moment at 4am on a Saturday night? Wouldn’t it be nice if a bot would automatically mint CHI for you every time your desired gas price condition is there?
Good — because this is exactly what HAL built for you using gelato as the automation infrastructure: the automated CHI accumulator.
How does the Chi Accumulator work?
HAL defined a condition on Gelato that reads the “fast gwei price” from a Chainlink contract. The fact that Gelato has an internal on-chain gas price feed allows users to specify the gas prices under which they want to automatically execute a transaction at a later time, and the Gelato bots will only execute the Tasks when the gas price is as defined by the user.
HAL leveraged this for their CHI Accumulator by enabling users to specify an on-chain reference gas price that their automated CHI minting transactions will be triggered by.
What is Gelato?
Gelato is a tool for developers to automate smart contract execution on Ethereum. At its core is an audited smart contract protocol that coordinates service agreements between dapp developers’, and their users’ Tasks, and bots that automate their execution. As a developer, who wants to automate some aspect of your dapp, all you need to do is submit your Tasks to Gelato and they will be executed, when your specified conditions are met.
Similar to how Chainlink removes the burden from developers to build and run their own decentralized oracles, Gelato equips them with a decentralized transaction automation engine, which they do not have to build, run or maintain themselves.
Build your own automated dApp:
Gelato‘s Mainnet Launch: