Introduction

Methodology

So how does the Uniswap ratio compare to it's competitor Sushiswap, we see that Sushiswaps ratio is far lower. Sushiswap has only managed to have a ratio over 0.01 on 10 days so far this year. As Uniswap is the more popular exchange with a higher marketcap so it isn't surprising that it would have a higher ratio throughout.

Conclusion

So with all this gas usage what has a higher rate of failure, the ETH ecosystem as a whole ore UNiswap. We can see here that even with the higher gas prices UNI transaction are more likely to fail. With 4 days where the failure rate is above 10%, this could be down to invest trying to save money by lower their gas fees while doing swaps due to the fees being higher on Uniswap, as well as bots running on the exchange with some of them requiring manual gas prices to be set by a human, meaning they may carry out transactions before a change has been made to match the current gas price.

Uniswap gas fee is generally higher than ETH gas fees, with there being only one day where the average fee was higher on May 1st 2022 following a NFT launch.

In this piechart, we can see that Uniswap accounts for only 7.69% of gas fees, with the rest of ETH accounting for 92.3%.

The ratio of gas to the total gas fee sit's below 0.1 on most days,with spikes above 0.1 seen on most days meaning that even on the highest days gas fees it only accounts for a fraction of fees on the ETH blockchain.

Gas is a transaction fee paid that both burns supply and pays miners for the computational power they use to help run the Ethereum blockchain. Gas tends to fluctuate throughout the day with gas being higher during times of higher usage and lower during times of lower usage.

Take a look at Etherscan and you will see that different dapps and tokens have different gas prices with fees being higher for some of the highest gas users on the network.

Ethereum sees gas as a way of both maintaining security on the network, one of the ways it does this is by making it costly for individuals to attack the network by sending through lots of transactions at once. Solana often touted as an Ethereum killer has had high profile shutdowns due to being spammed with transactions, read more in the article here Solana’s network goes down for the third time in less than six months.

Uniswap one of the most popular decentralised exchanges is know for having high gas fees and as at times been blamed for both the higher cost of gas on Ethereum and slow downs in the network. Let's take a look at how much gas Uniswap uses and compare it to Ethereum as a whole in addition to a competitor Sushiswap.

• Anaylse the ratio of Gas used by Uniswap and to the total gas used on Ethereum

• Examine the total gas fees used by Uniswap today in comparision to other transactions on Ethereum.

• Visulaise the average ETH gas fees and the average fee for Uniswap transactions.

• Evaluate the percentage of transactions that fail on Uniswap and ETH as a whole.

• Investigate Uniswap ratio to the total transactions on ETH to Sushiswap ratio in comparison to total transactions on ETH.

The scatter graph above highlights the average ratio on Uniswap and its relationship to the average gas fee. A bigger bubble and a higher ratio could imply a relationship between an increased average gas price on Uniswap and the use of Uniswap. While there are a few bubbles that are larger and higher on the chart notably on the 8th of February. Most are scattered around, with a variety of bubble sizes at a variety of ratios with a smaller bubble on April 4th being seen at one of the highest ratios recorded since the start of the year.

While Uniswap uses a fraction of gas on the Ethereum network we see that gas prices on average are more costly for Uniswap users. It's more common for transactions to fail on Uniswap than on the wider Ethereum ecosystem as a whole. When compared to Sushiswap we see that its gas fee ratio is far higher possible explaining the increased gas fee for Uniswap users.