Understanding Relay Series and Secure Core: A Deep Dive into Ethereum Fees
A key part of Ethereum’s scaling solution, Relay Series is often criticized for its high fees. One aspect that can contribute to these hefty fees is PimlicoFeeEstimator, the key algorithm used by Relay Series to estimate gas prices. In this article, we will explore why the PimlicoFeeEstimator has an overestimation and what’s behind it.
What is PimlicoFeeEstimator?
PimlicoFeeEstimator is a complex algorithm that takes into account various factors to estimate Ethereum gas prices. It is designed to provide accurate estimates, but its accuracy can be compromised due to certain design choices.
Buffering in Relay Series
Relay Series has a buffer to ensure that the estimated gas price is at least 1% higher than the actual gas price. This buffer takes into account various uncertainties, such as the complexity of running the Ethereum Virtual Machine (EVM) and the difficulty of accurately estimating gas prices.
VerificationGasLimit and PreVerificationGas
The relay set also includes two additional parameters: VerificationGasLimit and PreVerificationGas. These values are set to a higher limit than the actual required gas price, allowing for some margin of error.
Why is it overestimated?
So why does this buffering mechanism lead to overestimates? The answer lies in the way the relay set handles the PimlicoFeeEstimator algorithm.
When PimlicoFeeEstimator produces a higher than estimated gas price, it is important to ensure that the actual gas price is not too low. Setting the buffer too high can overestimate the estimated gas price even further, resulting in higher fees.
Additionally, the relay set uses a Non-Linear Scaling Factor (NLSF) to adjust the estimated gas prices based on the buffer value. NLSF ensures that the estimated gas prices are not too high. However, this nonlinearity can lead to underestimates when the actual gas price is significantly lower than expected.
Reasoning for Design Choices
The authors of the PimlicoFeeEstimator algorithm, Safe Global, have stated that their goal was to provide a robust and efficient mechanism for estimating Ethereum gas prices. They believe that overestimating fees can be detrimental to Ethereum’s scalability goals, which require lower transaction costs.
To mitigate this issue, Safe Global has implemented a few design choices:
- Higher buffer values: The authors increased the buffer values to provide more margin for error.
- Non-Linear Scaling Factor (NLSF): NLSF ensures that the estimated gas prices are not too high.
- Additional Heuristics: Safe Global has added additional heuristics to the PimlicoFeeEstimator algorithm, such as underestimating the minimum buffer value.
Conclusion
Overestimation of Ethereum fees in a brokerage suite is a complex problem involving several design options and trade-offs. While the authors intended to provide a robust mechanism for estimating gas prices, their implementation has resulted in higher fees due to the introduction of buffering mechanisms.
In conclusion, understanding the causes of overestimation can help us understand the complexities involved in scaling Ethereum. By identifying these design choices, we can improve the PimlicoFeeEstimator algorithm to provide more accurate estimates and minimize fees.
GitHub repository
You can find more information about the Safe Global repository at [
Please note that this is a simplified explanation of the issues and design choices involved.