MetaMask, the most popular Ethereum wallet, is often used as a gateway to DeFi but today it becomes part of the growing financial ecosystem itself as it introduces the ability to swap tokens directly on the app.
MetaMask will source its liquidity across decentralized exchanges and DEX aggregators with the aim of providing the best exchange rate and tighter spreads between tokens.
The move comes a day after the non-custodial wallet said it had reached 1 million monthly active users, some of which have the potential to become new DEX users, said MetaMask head of product Jacob Cantele in an interview with The Defiant.
“(DEXs and aggregators) don’t see us as competitors,” Cantele said. “We just passed 1 million monthly active users, and many of those users, the main thing they do is send crypto to other people or between their accounts so that’s a significant consumer base that can be converted into DEX users and we can grow the entire DEX ecosystem together.”
The feature is initially available to users of the MetaMask extension on the Firefox browser, and will be rolled out soon to other browsers in the following days and to the mobile apps “soon,” Cantele said.
Lower Transaction Costs
MetaMask hopes to lower transaction costs for Ethereum users by allowing one-time token approvals, and eliminating the need to spend gas by checking rates across multiple platforms before making an exchange.
Liquidity sources for the ConsenSys-backed company will be Uniswap, Airswap, Kyber, 0x API, 1inch.exchange, dex.ag, Paraswap, Totle, and private market makers, with the aim to continue adding more. Exchanges using Layer 2 solutions can also be included via MetaMask’s Snaps plug-in solution, Cantele said.
Many Use Cases
Fees will be dynamic depending on the size of the swap and will range between 0.3% and 0.875%. Part of that will be shared with the original liquidity source.
Asked whether MetaMask goal is to continue adding more DeFi use cases to the popular wallet, Cantele said:
“We are the most popular DeFi wallet because we’re providing a solution that is permissionless and allows people to innovate on top of it. Our goal is to grow the entire decentralized web and to support many, many use cases.”