Author: Fairy, ChainCatcher
Editor: TB, ChainCatcher
Every on-chain user has experienced the "roller coaster" of gas fees - transaction costs are low when the network load is low, but during peak hours, gas fees may skyrocket several times. This fluctuation not only affects ordinary users, but also brings huge cost pressure to institutions such as DeFi traders, oracle nodes, CEX and Rollup operators.
Recently, the birth of Foil, a decentralized on-chain resource trading protocol, attempts to solve this problem: Foil’s core goal is to redefine the pricing mechanism of block space by creating an on-chain fee market, thereby alleviating the challenges brought by gas fee fluctuations.
How does Foil work?
Foil is building an on-chain gas fee market through Foil V1, providing developers, institutions and ordinary users with a more stable transaction cost management solution.
Foil V1 supports a Gas subscription market settled in ETH, tracking the average Gas fee of Ethereum L1, allowing users to lock in future costs in a similar subscription manner and avoid drastic fluctuations in Gas prices. This innovation will open up an on-chain Gas trading market with a scale of over $3 billion, providing a more efficient and predictable Gas fee solution for the on-chain ecosystem.
Key highlights:
- Gas Subscription: Users can purchase a Gas subscription plan to lock in future Gas fees in advance, hedge against market fluctuations at a fixed cost, and reduce the uncertainty of transaction costs.
- Two-sided market: Foil uses the Uniswap mechanism for price discovery, enabling liquidity providers (LPs) to freely trade Gas fee contracts, making Gas prices more market-oriented and transparent.
- Modular design: Foil has strong scalability and supports Celestia, Ethereum DA, L2 Rollups and AppChains. Any on-chain fee market can be quickly deployed to provide customized Gas fee management solutions for different ecosystems.
Foil team background and development status
Foil co-founder Noah Litvin is an influential developer who not only founded Foil, but is also the co-creator of Cannon, an EVM chain deployment automation and development tool, and a contributor to the Ethereum protocol standard ERC-7412.
According to social media information, Foil's core team also includes builders Rafa and Afif. Among them, Rafa has worked for Synthetix and Gnosis. They jointly promote Foil's technology research and development and implementation.
In addition, according to information on the official website, Foil has received support from many well-known institutions and individual investors, including Crucible Capital, CMS Holdings, Zeal Capital, Public Works, as well as echo founder Cobie, The Block CEO Larry Cermak, Celestia co-founder Ismail Khoffi, etc.
In terms of project progress, the Foil Gas Market mainnet beta has been launched on Base, supporting the Ethereum Gas fee market and Blobs trading market in March and April, providing on-chain traders with a more stable and transparent way to manage Gas fees. At the same time, Foil has also launched an on-chain resource market data tracking portal, where users can monitor key indicators of major on-chain resource markets in real time to further optimize trading strategies and cost management.
The future of Foil
The ultimate goal of Foil is to create a complete set of decentralized product systems to fundamentally eliminate the transaction pain points caused by gas fee fluctuations. By breaking away from the existing limitations of Ethereum L1, Foil will explore more innovative design solutions, further optimize the transaction efficiency of Layer 2 and other chains, and bring users a smoother user experience.
