MetaMask to Offer Token Swap Feature with Best Price and Low Fees
Today, Ethereum’s Wallet and Browser Extension Metamask launches a new feature for Firefox users (with Chrome to follow) that allows them to trade their digital assets for any token in a decentralized exchange within MetaMask Wallet.
MetaMask, which has an active userbase with 1 million users each month, provides a gateway to the Ethereum blockchain and related decentralized applications.
Subsequently, its wallet function allows users to transact on those dots and purchase Ethereum based tokens on decentralized exchanges. Now, it uses various connections to make a heavy lifting for customers.
According to Jacob Cantele the Product Head at MetaMask said;
“The reason we get the best prices because we combine different methods to sort more liquid resources (DEXs) and also different methods to split the order of DEXes (aggregators) at the same time,”
Thus not just resulting in great price according to Metamask, but also “one of the best networks for everyone with along with low fees and low network congestion.”
While some decentralized exchanges such as Uniswap avoid the strict onboarding process and some fees by various means, but it can be challenging to know if you are getting the best price.
So, the solution is to go with a Decentralized Exchange Aggregator, which shows the prices from other DEXs and Uniswap prices somewhat like how Kayak offers flight prices.
According to Cantele, the other DEX aggregators do not always come at the best price following the market.
Thus the plan to build a single DEX aggregator and bring it to the MetaMask. It was also found that the results vary based on the token and size of the user-created swap.
CEO David Blesnak quoted that one way to make this happen was “the best quote price is not equal to the best-fixed price, anyone can quote any price in the UI. Deviating from the quoted price of the settlement or making several failed transactions is a negative experience for the customers.”
Thus with this MetaMask believed that it had solved issues of unsatisfied with sending customers to decentralized exchanges or aggregators, the team behind the device built their system working with ConsenSys Codefi, that aggregates all the DEXes themselves thus keeping the users in there own confined surrounding and at the same time sending business to DeFi protocols like Totle.
According to Cantele, MetaMask subsequently helped in reducing gas fees. Generally, each person used by merchants for the transfer must pay a gas fee for the swaps made at the exchange.
Thus By combining all available aggregators and DXs, the number of token approvals can be reduced, and that will also reduce the amount of gas the user can provide.
Cantrle and his team believe that this new feature will help in reducing DeFi usage space in the Ethereum blockchain:
While making it Simple, systematic experience reduces conflict with new token users and brings more people into Defy. They are thus allowing faster trades by providing an optimized route for fees. And, most importantly, to bring greater transparency and efficiency to decentralized finance on Ethereum.
Yet the proof is in the pudding. When asked to explain this argument that Total Aggregator offers the best price possible in the market, Bleznak said: “The reality is that all aggregators get the best price (assuming everyone is looking for the same liquidity) that trade deals are any policy.”
But Blesk said, “at the end of the day, the competition will benefit non another than the end-user.”
