How Does a High Gas Price Impact the Profitability of DeFi Protocols? ▴ Learn

How Does a High Gas Price Impact the Profitability of DeFi Protocols?

High Gas Prices increase the cost of interacting with DeFi protocols, as nearly all actions (swapping, lending, staking) involve smart contract execution. This can price out smaller users and reduce the frequency of trades, lowering the protocol's overall transaction volume and profitability.

It also makes complex strategies, which require multiple transactions, economically unviable.

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