On Oct 6, 2020, the world’s most popular ETH-based wallet, MetaMask, introduced a token swaps feature to offer the widest variety of tokens across DeFi.
The new feature will initially be available on the MetaMask extension on the Firefox browser, but will soon be rolled out to other browsers and MetaMask Mobile.
The token swaps feature collects quotes across various decentralized liquidity platforms and aggregators. Users can then compare different sets of tokens ensuring they get what they are looking for at the best available price.
Ethereum software company ConsenSys, which owns MetaMask, has developed this new token swap feature to streamline all available liquidity in the DeFi ecosystem.
The wallet has integrated Uniswap, Airswap, Kyber, 1inch, and other liquidity sources to provide the best exchange rate and tighter spreads between tokens.
Previously, MetaMask users were forced to navigate many decentralized exchanges, which offer different sets of tokens at varying prices. Furthermore, each token had to be approved for trading on each venue separately.
Now, the MetaMask token swap aims to create a less complicated user experience by allowing one-time token approvals. This easy swap solution also eliminates the need to use gas for checking multiple platforms for token rates.
The wallet will charge dynamic fees ranging from 0.3% to 0.875% based on size of the swap.
Swap Tokens Directly Within the Wallet
By launching its new token-swapping feature, MetaMask facilitates users to browse DeFi protocols and connect their wallets directly to these liquidity providers to trade efficiently and securely.
DeFi platforms such as Uniswap, Yearn, and Aave will now offer seamless trading by integrating their site with the wallets network; thus, growing the wallet’s user base.
The wallet, in turn, will help millions of users continue to explore and discover more of the growing decentralized finance ecosystem.
“MetaMask now offers the best trading experience in DeFi. Swaps will benefit those who are actively using MetaMask, as well as new users who are trading on exchanges and aggregators,” asserted Jacob Cantele, Head of Product at MetaMask.
By fetching orders from multiple aggregators and private market makers, the wallet will offer the deepest liquidity across DeFi.
MetaMask Exceeds 1 Million Active Users
The new swap feature launches in the wake of MetaMask exceeding 1 million active users, meaning that folks using the wallet have tripled since February.
Interestingly, the total value locked in DeFi protocols has increased tenfold over the same period, as per data from DeFi pulse. This correlation suggests that the parabolic surge in DeFi has increased the number of MetaMask users.
MetaMask has identified that new users are coming to its network specifically to participate in the DeFi craze.
They thus plan to continue improving their wallet to empower it to facilitate easy integrations to the DeFi ecosystem.
Besides enabling users to buy and store crypto, it will also empower users to invest, sell, lend, and borrow from DeFi platforms like Uniswap.