September 30, 2021 - 3 min read
The possibility of having to spend astronomically more on gas fees than the actual amount of the transaction seems to be a cause of concern even now, and recently Bitfinex saw itself paying a rather high gas fee for a relatively smaller transaction.
A wallet belonging to crypto exchange Bitfinex paid $23.7 million in transaction fees for sending $100,000 worth of the stablecoin Tether to DeversiFi, a non-custodial exchange that spun out of Bitfinex. This makes it the largest gas fee ever recorded on the Ethereum blockchain. The irony is not lost on anyone since DeversiFi provides access to DeFi protocols without having to pay gas fees and thus save time and money.
According to the Twitter account, DeversiFi has launched an investigation and states that it was an erroneous transaction with no effect on the funds of its customers. The miner who mined the block that included the transaction was generous enough to return 7,626 ETH that he received to Bitfinex, amounting to $22.1 million. A lucky outcome only made possible thanks to Binance cooperation and the miner’s address being identifiable.
“Ledger Vault offers users security and ease of use throughout their day-to-day operations by combining the benefit of trusted display and multi-authorization. Trusted display enables to validate transactions’ details such as the maximum fees allowed. Multi authorization would have prevented a single person from putting such large assets at risk.” says Vincent Debast, Head of Product at Ledger Enterprise.
Custodians of crypto assets, such as Bitfinex, can benefit from using proven digital asset management solutions such as the Ledger Vault, which would have prevented a $23.7 million fee. Ledger Vault is a Best-of-breed crypto asset custody technology, that allows financial institutions to keep their crypto-asset business under full control.
Vault users can set a maximum fee amount for every transaction. Therefore, any possibility of erroneously high gas fees is eliminated. Ledger Vault removes the element of human error as well by allowing users to set up their own governance rules, no matter how complex, which offer the right check and balances for verifying transactions. No one set of governance rules can be right for all users, and the ability to control the complexity of those rules can help simplify day-to-day operations.
“The Ledger Vault platform enables accounts to be segregated easily so as to not perform critical operations from reserve wallets, while keeping these wallets readily available to access in case extra liquidity is required. That combined with the governance model significantly reduces the operational risks inherent to the management of cryptocurrencies.” says Vincent Debast, Head of Product at Ledger Enterprise.
Leading the pack comes with responsibility. At Ledger Enterprise, we know how it feels, and we are here to help you make the next step to growing your digital asset business.
If you are interested to learn more about the possibilities that Ledger Enterprise can open for your organization, get in touch with us by filling this form or directly by email at [email protected].