MetaMask, the ConsenSys backed Ethereum app, introduces a token swap feature, promising the best trading fees in the decentralized finance (DeFi) ecosystem. This aims to take a share of the market from the prevailing decentralized exchanges which used Metamask connection to transfer funds to the trading wallet.
At launch, MetaMask will release the ERC-20 token swapping feature on Firefox web browser extension with other web extensions and its mobile app to come later. The token swapping feature will source its data feeds from multiple decentralized exchanges and their aggregators to offer the best prices and gas fees on the platform.
“We get the best prices because we simultaneously aggregate the most liquidity sources (DEXs) and many different methods for splitting the order across the DEXs (aggregators),” Jacob Cantele, head of product at MetaMask.
The token swapping feature is set to open a gateway to users to directly swap their tokens without the need for a third-party service. Previously, a user needed to connect their MetaMask wallet to a DEX such as Paraswap or Uniswap to swap their ERC 20 tokens to obtain them. With the direct swap, users will not choose to transfer their tokens to another party – reducing the number of steps.
The wallet will support data feeds from Uniswap, Paraswap, Kyber Network, 0x exchange, and 1.inch exchange, among other decentralized platforms.
According to ConsenSys, the fees will range across users depending on the order size, with trading fees expected to range from 0.03% to 0.085% on the platform.
The latest developments follow the Metamask mobile wallet's launch on iOS and Android, allowing users to buy Ethereum (ETH) using Apple Pay directly. The developments will be key to onboard more customers, recently announcing they had reached 1 million active digital wallet users.