Same-Chain vs. Cross-Chain Transactions

What are same-chain and cross-chain transactions?

In simple terms, a same-chain transaction refers to asset swaps or trades occurring on a single blockchain, where both sending and receiving assets are on the same network. Cross-chain transactions, on the other hand, involve swapping or trading assets between different blockchains, meaning the sending and receiving assets are on different networks.

Why do transactions fail?

1. Insufficient network fees: When a network is congested, gas fees may increase. Miners prioritize transactions with higher gas fees, so if your transaction isn't packaged for a long time, it may fail. It's recommended to use the platform's suggested default gas fee when initiating a transaction.
2. Slippage too high: During market volatility, changes in liquidity depth can cause the transaction amount to be less than the minimum received amount, resulting in a failed trade due to excessive slippage.
3. Duplicate transactions: If a user initiates multiple identical transactions but only has enough balance for the first one, the subsequent transactions will fail.

What is slippage?

Slippage refers to the difference between the expected transaction price and the actual execution price. This typically occurs during high market volatility or low liquidity. In DEXs, slippage often occurs due to significant market fluctuations or insufficient liquidity.

How can I minimize slippage?

While slippage cannot be completely avoided, you can reduce losses by: 1. Choosing assets with high trading amount and liquidity. 2. Prioritizing smaller transactions to avoid large orders. 3. Adjusting slippage tolerance according to price fluctuations. However, be careful, as raising slippage tolerance may lead to more price erosion, so evaluate carefully.

Do I still need to pay gas fees after a failed transaction?

Yes. Whether you’re sending/transferring tokens, interacting with smart contracts, or performing other actions on the blockchain, network fees must be paid to miners or validators for processing the transaction. Since they consume network resources to handle the transaction, the fees are paid regardless of the transaction's success or failure.