Deposit Together with others on Wido to save up to 80% on gas fees! Starting with yearn.finance
Yearn.Finance is a great protocol to earn yield on your crypto. But the deposit transactions into yearn are very expensive. Deposit fees into yearn.finance can go as high as $500. This means only people with lot of crypto wealth can deposit. Wido Together will let people bundle their deposit transaction with others and split the expensive fee. Instead of depositing into yearn.finance directly, people will join Wido Together queue. Every Friday, Wido will collect all transactions in the queue, bundle them together and execute all at one. This will result in up to 80% savings in deposit fees.
How it's made
Every user joining the batch will need to send an APPROVE transaction to allow Wido smart contract to withdraw their funds. After the user approves, the user will also SIGN a transaction specifying amount of tokens and yearn vault to which they want to deposit. Wido will collect those SIGNED transactions and save in a database. After Friday, the batch closes and no more people can join until new batch reopens. Wido will then collect money from all users and deposit all of it together into yearn; all that in a single transaction. That means there will only be 1 transaction into Yearn vault for all users. And the fee for this particular transaction will be paid by all users together, so they will only pay a fraction compared to full transaction price. On top of that, the user will pay the FEE in the token they deposit with, instead of Eth, which will further improve the UX of depositing into yearn. And last note is about the first user entering the queue. The first user is making a small risk when adding their transaction into the Wido queue: If they will end up being the only user in the queue on Friday, Wido will not execute the batch. That will result in the first user spending $$ on APPROVE transaction for Wido, without getting anything in return. To compensate for that and to incentivise people to join empty queues, Wido will cover the deposit transaction for them in case the queue gets executed. This still means the user might not get their money in if they will end up being the only one, but it also means they can win a lot if the queue gets through. We think it will push people to deposit using Wido plus it will incentivise them to bring their friends and make sure the queue gets filled. For the start we will launch it with just yearn and will add more protocols gradually.