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ConsenSys > Case Studies > MetaMask Swaps: Removing User Frictions from P2P Trading
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MetaMask Swaps: Removing User Frictions from P2P Trading

Technology Category
  • Application Infrastructure & Middleware - API Integration & Management
  • Platform as a Service (PaaS) - Connectivity Platforms
Applicable Industries
  • Finance & Insurance
Applicable Functions
  • Procurement
Use Cases
  • Machine to Machine Payments
Services
  • Software Design & Engineering Services
The Challenge
The year 2020 saw the largest scale adoption of decentralized exchanges (DEXs). Compared to centralized exchanges, DEXs offer more pairs when trading, provide access to a greater diversity of tokens, and enable non-custodial swaps that keep funds safer. However, DEX users often don’t receive the best price when there is insufficient liquidity, or if a particular DEX doesn’t offer the most attractive price. Before MetaMask Swaps, users needed to navigate many DEXs to compare prices and swap tokens. However, using a single DEX or DEX aggregator did not always yield the best price for every trade, as each aggregator performs differently under different circumstances. Additionally, users needed to approve each token on each DEX, incurring expensive gas costs.
About The Customer
MetaMask is a cryptocurrency wallet which can be used on the Chrome, Firefox and Brave browsers. It’s also a browser extension. This means that it works like a bridge between normal browsers and the Ethereum blockchain. ConsenSys is a global community of developers, businessmen, programmers, journalists, lawyers, etc. who are dedicated to the development of blockchain technology. They aim to use this technology to create a decentralized world. ConsenSys was founded by Joseph Lubin, a co-founder of Ethereum, in October 2014.
The Solution
MetaMask and Codefi together built Swaps, a feature that enables any Web3 or DeFi user to easily access the tokens they need for the sites they use. This gives users the flexibility to shop for the best decentralized exchange rates before making their purchase, via real time pricing information from multiple sources, a secure, reliable digital wallet, and the convenience of the MetaMask app or web browser extension. By drawing information from the largest decentralized exchanges in the ecosystem, MetaMask Swaps allows users to access real time pricing information from a variety of sources all from the safety of their wallet. In addition to solving the price inefficiency problem, the Codefi Markets team also sought to improve user experience across multiple protocols.
Operational Impact
  • The best price every time: By requesting prices from all available aggregators, along with individual market makers, Swaps ensures that every MetaMask user always has access to great liquidity, the largest selection of tokens, and the most competitive prices.
  • Fewer approvals: No need to approve every token on multiple DEXs and aggregators for each trade. With Swaps, users only need to approve each token once, reducing gas costs and shortening the path to executing a swap.
  • Reduced gas costs: Each aggregator pursues a different path to locate the best trade. Each route requires a varying amount of gas fees to execute the transaction. Swaps sources the best prices and determines which aggregator is the most gas efficient for every trade.
Quantitative Benefit
  • As of March 2021, users have completed over 341,000 peer to peer swaps worth over US$1 billion.

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