- Degenerative Finance has launched an experimental design space that explores different derivative products and synthetic assets.
- The project’s first project is uGas, synthetic gas futures for Ethereum.
- Depending on a user’s profile, uGas can be a helpful tool to hedge and speculate on the rise or fall of gas prices on the number two network.
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The uGas offering will be the focus of this week’s Project Spotlight feature.
uGas offers decentralized gas futures for users within the Ethereum ecosystem. For the uninitiated, every transaction on Ethereum costs gas. Sometimes the network can be so congested that the cost to transact can make even simple operations prohibitively expensive.
There have been many examples of such limiting conditions. Each example has also been used to promote alternative blockchains and speed up development for various Layer-2 solutions.
The CryptoKitties boom in 2017 is perhaps the first severe case of extremely high gas fees, but the meteoric rise of DeFi in 2020 has proven to be as notable.
This is becoming a growing issue for the number two network and may limit the asset’s potential if not solved. Speculators are not the only demographic affected, however. Developers, users, and those looking to build companies on top of Ethereum must consider the high cost of operating.
Naturally, Ethereum developers have been hard at work to dissolve this pain point. The launch of Ethereum 2.0’s Beacon Chain last year and the “soft” launch of Optism’s Layer-2 solution have given the community hope.
These solutions, however, may take much longer than anticipated.
Instead of rebuilding Ethereum’s technical components, many emerging projects attempt to solve the scaling issue…