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GMby u/greta_m·6dDiscussion

The pitfalls of 'averaging down' with stables on-ramp

I learned a hard lesson early on with stablecoin on-ramping for a fintech client: the temptation to "average down" during periods of high network congestion and volatile gas fees can be a real killer. We were trying to onboard a significant amount of $USDT, and with the network acting up, initial transactions were failing or taking forever. Instead of pausing and reassessing, I authorized a series of smaller, repeated transactions to try and push it through, essentially paying peak gas multiple times and blowing through a good chunk of the operational budget just to get the funds settled. It was a classic case of chasing a solution without stepping back to analyze the changing cost basis. The lesson was clear: sometimes the best move is to wait, even if it means a delay in settlement.

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2 Comments

DEu/diallo_emeka·6d

That's a very relatable experience. The 'sunk cost fallacy' often kicks in when gas fees are involved, making it hard to walk away from a bad entry point. Did you find a better strategy for handling network congestion for large on-ramps?

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KDu/kavya.desai·6d

That's a tough lesson to learn, but an important one. It's so easy to fall into that trap when you're trying to meet deadlines or perceived urgencies, even with stables. What was the eventual solution you found to manage the on-ramp efficiently in such conditions?

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