Key Takeaways
Though activity on decentralized exchanges (DEXes) has been quiet, 2020 has been a breakout year for the crypto primitive. Initially touted as a safer, more secure mechanism for trading crypto, DEXes have nonetheless been challenging to navigate.
Users may enjoy non-custodial trading, but these decentralized alternatives cannot compete with their sleek centralized counterparts.
The clunky user experience was made clearer following the rise of decentralized finance (DeFi). So-called yield farmers who needed to move from asset to asset and platform to platform, often faced high fees and slippage as they sought lucrative returns. Poor efficiency and usability made the new endeavor all the more difficult.
In response, several DEX aggregators have risen to bring together the disparate crypto space. Instead of searching for the best prices, users could come to a handful of platforms to find the best price and execute trades. Creating a DeFi traders one-stop-shop was just the first step, however.
Despite their convenience, these aggregators are a far cry from simple. If cryptos primary objective is still mainstream adoption, abstracting away this complexity is crucial.
Matcha exchange, a front-end to one of the original DEXes, 0x Protocol, is working on this very problem. At once a clean user interface, Matcha also offers new users an educational experience as they navigate the platform.
In this way, Matcha is expanding the DeFi pie and helping onboard the crypto-curious.
0x Protocol is a heavyweight within the niche DeFi ecosystem, playing a pioneering role in shaping DeFi before it grew into the popularity it enjoys today. Matcha is a DEX aggregator built on top of 0x.
Just like other aggregators, Matcha pulls liquidity from several different DEXes including, Uniswap, Curve, Kyber, Oasis, and the 0x Mesh. Matcha is not restricted to on-chain liquidity and can tap into 0xs proprietary off-chain liquidity sources.
However, the 0x Protocol is a liquidity aggregation protocol itself, which means Matcha is more like a front-end for 0x.
The objective behind Matcha is to give regular users the ability to use 0xs liquidity aggregation facility. Using a standalone DEX over an aggregator will almost always result in an inferior price. Matcha provides this service with a focus on superior user experience.
As discussed in the last few Project Spotlights, simple UIs with enhanced user experience are the need of the hour, helping DeFi scale to a broader range of users.
Matchas simplicity is perhaps its most enticing feature. Compared to competing aggregators, the experience of using Matcha is not as daunting for newer users. Its the easiest DEX aggregator to use with a user-friendly interface.
The help section is also filled with basic queries that new users tend to have.
With shortcuts on the homepage, trading on Matcha comes down to just a few clicks. Furthermore, each asset has a short write-up that explains the tokens use case and reason for existence. Essentially, Matcha aims to provide a platform for non-DeFi natives to experience the power of permissionless finance.
Liquidity aggregation is not a new concept by any means. Matcha is the only the latest in a similar round of projects to go live on the Ethereum mainnet.
The biggest competitor for Matcha is 1inch Exchange. Developed at a hackathon in 2019, 1inch has quickly become a DeFi favorite. Some power users have even stopped visiting individual DEX interfaces and swear by 1inch alone.
Its difficult for emerging products to seize market share from incumbents, but its not impossible. 1inch suffers from a common issue in DeFi: high gas prices. Unfortunately, Matcha is not exempt from this.
It costs more to draw liquidity from various sources rather than just one. The more pools from which liquidity is sourced, the more transactions are required to execute the action. Given the high cost of Ethereum transactions as of late, it becomes clear why liquidity aggregation is more expensive.
Effectively, every user must look at the cost of slippage versus transactions. If the slippage between, say, Uniswap and Matcha isnt significant, it makes sense to use Uniswap, which is optimized for lower gas consumption.
To illustrate, lets look at an example. It costs 75 gwei per unit of gas as of the time of writing. Swapping one ETH for USDC results in 242.798 USDC on 1inch exchange, 243.6524 USDC on Matcha, and 243.398 on Uniswap v2.
Matcha has the best price, which is its job as an aggregator. Users still need to consider gas fees, however.
It costs $8.43 in gas to execute the trade on 1inch.exchange.
At $4.11, this transaction on Uniswap was more than a 50% reduction compared to 1inch.
On Matcha, this trade displayed a total cost of $6.6, but only after Matchas $5.16 discount on gas.
Note: MetaMask may show users a higher cost than Matcha estimates for gas. The wallet tends to overestimate transaction costs, but excess fees are credited back to the user wallets.
Matcha is built on 0x, so theres a fee paid to market makers on the protocol who facilitate the transaction.
Without the discount, Matchas trade cost is $11.76, which is the most expensive of the three despite the attractive price of USDC. However, Matcha will continue to offer gas discounts for the foreseeable future, which currently makes it the cheapest aggregator to use.
The end-game for aggregators is their role in reducing slippage. Its a noticeable improvement for traders moving size, but may not be practical for all DeFi users.
The most significant advantage of using Matcha is undoubtedly the user experience. With a clean UI and all functions easy to navigate, its the kind of improvement DeFi has been long due.
Because of the trade-off between slippage and gas, smaller traders need to be conscious of which liquidity product gives them the best deal. For larger traders, however, slippage is always a greater nuisance.
Therefore, using an aggregator is a no-brainer for those trading more than $10,000 to $15,000 per trade.
Building on this, Matcha offers request for quote (RFQ) trades. Instead of submitting an order to source liquidity, a trader can submit a quote for their desired trade with all requisite details.
RFQs are targeted at institutional investors who trade in large amounts or want exposure to rather obscure assets.
The core value proposition of Matcha is inclusivity. For DeFi to truly eat into legacy finance, those who are serviced by the legacy system should be able to transition into DeFi seamlessly. Simple liquidity products like Matcha go a long way in recognizing that vision.
Even if it isnt the end-product that the average Joe will use when onboarded to DeFi, its a step toward the UX overhaul DeFi needs for mass consumption.
As mentioned earlier, Matcha is essentially a dashboard for 0x Protocol. Though 0x offered crypto users their first glimpse into DEXes, there are several other use cases.
These include transferring in-game collectibles, decentralized prediction markets, and many others. It is for this reason that the 0x community has grown so large.
0x lets anyone build any variety of non-custodial marketplaces on top of the technology. And many of these marketplaces, in the form of relayers, have become so large that they serve as liquidity providers for many popular trading pairs.
In terms of non-fungible tokens (NFTs), 0x helps facilitate the exchange of one of the largest crypto games, Gods Unchained. Thanks to 0x, users can buy and sell digital cards earned through gameplay.
Relayers and DIY marketplaces are just a few examples of what users can build using 0x. Matcha fits into this scheme by offering users a clear window into all of these interactions. And so far, many traders are taking notice.
Barely a month after launch, Matcha has facilitated more than $24 million in trades. The exchange is also the fourth largest relayer within the 0x ecosystem, according to 0x Tracker.
Helping to facilitate this growth are several prominent members throughout the Ethereum community. The core team driving Matcha forward is made up of Will Warren, Clay Robbins, John Johnson, and Chris Kalani. Because the underlying technology has long been up and running, the heft of the teams focus has been recruiting exquisite designers.
Matcha exchange boasts one of the cleanest interfaces in DeFi. And after discounting expensive transaction fees on Ethereum, it deserves the attention of every Etherean looking to make speedy token swaps.
Though it does not reinvent the wheel, Matchas intentions are laser-focused. The team has leveraged a battle-tested 0x protocol and an easy-to-use trading platform comparable to centralized exchanges.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
DeFi Project Spotlight: 1inch.exchange, the Trading Router for Decentr...
Project Spotlight: Furucombo
Project Spotlight: Zapper Finance and the DeFi Investor's Dashboard
See the original post:
DeFi Project Spotlight: Matcha and The Robinhood of Ethereum - Crypto Briefing
- How does Ethereum work - Medium - February 3rd, 2018 [February 3rd, 2018]
- Ethereum - BTCMANAGER - February 19th, 2018 [February 19th, 2018]
- This Giant Infographic Compares Bitcoin, Ethereum, and ... - February 19th, 2018 [February 19th, 2018]
- What is Ethereum? | CryptoCompare.com - February 23rd, 2018 [February 23rd, 2018]
- The Top 10 Best Ethereum Wallets (2018 Edition) - February 23rd, 2018 [February 23rd, 2018]
- Ethereum fixes serious eclipse flaw that could be exploited ... - March 7th, 2018 [March 7th, 2018]
- How does Ethereum work, anyway? - Medium - April 25th, 2018 [April 25th, 2018]
- Free-Ethereum.com - Free Ether! - May 31st, 2018 [May 31st, 2018]
- What is Ethereum? | The Ultimate Beginners' Guide - June 20th, 2018 [June 20th, 2018]
- Ethereum Mining Guide for AMD and NVidia GPUs - Windows ... - June 20th, 2018 [June 20th, 2018]
- Ethereum: Blockchains, Digital Assets, Smart Contracts ... - July 16th, 2018 [July 16th, 2018]
- Ethereum Price - Mobile Friendly Price of Ether - July 16th, 2018 [July 16th, 2018]
- Ethereum Soars with over a 2,800% Rally - Coin News Asia - July 28th, 2018 [July 28th, 2018]
- Ethereum Co-Founder Joseph Lubin Says Speculators Driving ... - August 20th, 2018 [August 20th, 2018]
- Bitcoin and Ethereum: A Look At The Week Ahead - September 2nd, 2018 [September 2nd, 2018]
- EthereumPrice - Official Site - October 3rd, 2018 [October 3rd, 2018]
- Ethereum Classic Price Analysis: ETC/USD Could Revisit $12 - October 6th, 2018 [October 6th, 2018]
- Ethplorer Ethereum tokens explorer and data viewer. Top ... - October 6th, 2018 [October 6th, 2018]
- Buy and Sell Ether With The Peer-to-Peer Ethereum ... - October 6th, 2018 [October 6th, 2018]
- Ethereum Price - CoinDesk - October 18th, 2018 [October 18th, 2018]
- EthereumPrice.org - USD Price, Charts & History - October 18th, 2018 [October 18th, 2018]
- Report: Whales Accumulate Ethereum (ETH) En-Masse Amid Bear ... - December 7th, 2018 [December 7th, 2018]
- GitHub - ethereum/go-ethereum: Official Go implementation of ... - December 7th, 2018 [December 7th, 2018]
- Ethererum Crypto-Economics Index Real-time Price Charts and ... - December 7th, 2018 [December 7th, 2018]
- Ethereum Definition | Investopedia - December 7th, 2018 [December 7th, 2018]
- What is Ethereum Gas: Step-By-Step Guide - Blockgeeks - December 19th, 2018 [December 19th, 2018]
- Ethereum Price Analysis: ETH Could Extend Losses Below $80 ... - December 19th, 2018 [December 19th, 2018]
- Ethereum Price Analysis: ETH Could Turn Bullish Above $90 ... - December 19th, 2018 [December 19th, 2018]
- Bitcoin, Ethereum, Ripple Prices Surge Higher; FOMO Santa Rally? - December 26th, 2018 [December 26th, 2018]
- Ethereum Co-Founder Calls the Cryptobottom of 2018 ... - December 26th, 2018 [December 26th, 2018]
- Part 1: Ethereum vs NEO Which blockchain will provide ... - December 31st, 2018 [December 31st, 2018]
- Ethereum Price Analysis: ETH Corrects Sharply, Can It Hold ... - December 31st, 2018 [December 31st, 2018]
- Ethereum: JPMorgan, Microsoft, Banks Form ... - fortune.com - January 3rd, 2019 [January 3rd, 2019]
- Ethereum News | Ethereum News today | Latest Ethereum News - January 3rd, 2019 [January 3rd, 2019]
- Ethereum (ETH) - Price, Chart, Info | CryptoSlate - January 3rd, 2019 [January 3rd, 2019]
- Ethereum Cash Pro - January 3rd, 2019 [January 3rd, 2019]
- What Is Ethereum? Here's What You Need To Know - January 3rd, 2019 [January 3rd, 2019]
- What is Ethereum? | The Ultimate Beginners Guide - January 27th, 2019 [January 27th, 2019]
- Ethereum Classic - A smarter blockchain that takes digital ... - January 27th, 2019 [January 27th, 2019]
- Ethereum Price Analysis: ETH Relatively Muted, Next Move ... - January 27th, 2019 [January 27th, 2019]
- Buy and Sell Ether With The Peer-to-Peer Ethereum Marketplace ... - January 27th, 2019 [January 27th, 2019]
- What is Ethereum? | The Ultimate Beginners' Guide - CoinCentral - January 30th, 2019 [January 30th, 2019]
- Ethereum Price Analysis: ETH Breaks Down, Turned Sell on ... - January 30th, 2019 [January 30th, 2019]
- Ethereum Price Analysis: ETH Remains Sell Near $128 ... - March 6th, 2019 [March 6th, 2019]
- Ethereum Price Analysis: ETH Remains Sell Near $128, Target ... - March 11th, 2019 [March 11th, 2019]
- Create a cryptocurrency contract in Ethereum - March 11th, 2019 [March 11th, 2019]
- Ethereum Price Analysis: ETH Buyers Wont Give Up Easily ... - March 11th, 2019 [March 11th, 2019]
- Buy and Sell ETH With The Peer-to-Peer Ethereum Marketplace ... - March 18th, 2019 [March 18th, 2019]
- Ethereum Technical Analysis - FXStreet - March 18th, 2019 [March 18th, 2019]
- Ethereum - Investopedia - March 18th, 2019 [March 18th, 2019]
- Ethereum - reddit - March 18th, 2019 [March 18th, 2019]
- Ethereum vs Bitcoin: The Battle for the Crypto Throne - Coindoo - March 18th, 2019 [March 18th, 2019]
- Ethereum Price Analysis: ETH Could Make a Sustained Move ... - March 18th, 2019 [March 18th, 2019]
- Ethereum Project - March 18th, 2019 [March 18th, 2019]
- Ethereum - Official Site - April 20th, 2019 [April 20th, 2019]
- Ethereum (ETH) Price Starts Much Awaited Rebound To $170 - May 9th, 2019 [May 9th, 2019]
- Ethereum Price Analysis: ETH Corrects But More Upsides Likely ... - May 9th, 2019 [May 9th, 2019]
- Ethereum Price Analysis: ETH Primed For Additional Losses ... - May 9th, 2019 [May 9th, 2019]
- Ethereum Won't Fail: Joseph Lubin - ccn.com - May 9th, 2019 [May 9th, 2019]
- Ethereum (ETH) Price Starts Fresh Increase: Bitcoin Leading ... - May 9th, 2019 [May 9th, 2019]
- Bitcoin Booming As Ethereum, Ripple's XRP, EOS And Litecoin ... - May 9th, 2019 [May 9th, 2019]
- Ethereum Bounty Program - May 30th, 2019 [May 30th, 2019]
- Dark Horses of dApps: 6 Blockchains With Ethereum In Their Sights - Crypto Briefing - October 21st, 2019 [October 21st, 2019]
- Latin Americans get two new ways to trade Bitcoin, Ethereum, and more - Decrypt - October 21st, 2019 [October 21st, 2019]
- Ethereums Bearish Wave Count Outlined by Cryptocurrency Analyst - BeInCrypto - October 21st, 2019 [October 21st, 2019]
- XRPs Third Quarter Inflation Rate Was Lower Than Ethereum (ETH) and Litecoin (LTC) - SludgeFeed - October 21st, 2019 [October 21st, 2019]
- Ethereum (ETH) Dives To $170, Is $160 Next Bear Target? - newsBTC - October 21st, 2019 [October 21st, 2019]
- Thomson Reuters: Bringing Smart Contracts to the Mainstream With Ethereum & Chainlink - Blockonomi - October 21st, 2019 [October 21st, 2019]
- Crypto Analyst: Ethereum Has Bottomed, Expected To See Extended Rally - newsBTC - October 21st, 2019 [October 21st, 2019]
- WATCH: MyCrypto CEO Taylor Monahan on Crypto Adoption and Ethereum - Coindesk - October 21st, 2019 [October 21st, 2019]
- Cryptocurrency market update: Kicks of a dying horse as Bitcoin, Ethereum and Ripple remain suppressed - FXStreet - October 24th, 2019 [October 24th, 2019]
- Cryptocurrencies price prediction: Bitcoin, Ethereum & Litecoin - American Wrap - 22 October - FXStreet - October 24th, 2019 [October 24th, 2019]
- Ethereums gas prices show an unusual surge when the Asian market sleeps - AMBCrypto - October 24th, 2019 [October 24th, 2019]
- Whale Consolidates $88M Worth of Ethereum in Two Transactions - BeInCrypto - October 24th, 2019 [October 24th, 2019]
- Ethereum Falls 10% In Selloff - Yahoo Finance - October 24th, 2019 [October 24th, 2019]
- TRON Joins Bitcoin And Ethereum On Opera Browser - Crypto Briefing - October 24th, 2019 [October 24th, 2019]
- Ethereum (ETH) Rebound Faces Major Hurdle Near $180 - newsBTC - October 24th, 2019 [October 24th, 2019]
- Ethereum Breakout Above $360 Means Skys the Limit, Believes Cryptocurrency Analyst - BeInCrypto - October 24th, 2019 [October 24th, 2019]
- Ethereum Futures: The Next Big Derivative to Hit the Market? - Cointelegraph - October 24th, 2019 [October 24th, 2019]
- Ethereum and Stellars Lumen Daily Tech Analysis 23/10/19 - Yahoo Finance - October 24th, 2019 [October 24th, 2019]