Cross Chain Swaps: A Simpler Way to Trade Assets Across Ethereum-Compatible Networks
If you’re a crypto trader who enjoys variety in your trading activities, there’s good news for you. Ethereum DeFi exchange Matcha has released cross chain swaps, allowing users to trade tokens across different Ethereum-compatible networks like Polygon and Avalanche.
This development is particularly beneficial for experienced DeFi traders and investors who often deal with the complexities of managing multiple chains and bridges. Moving assets from one chain to another usually involves using bridges, which can be inconvenient due to poor user experience, long wait times, and high fees. Matcha aims to address these pain points by offering built-in cross chain swaps on its exchange.
Abstracting Bridges
Matcha is a decentralized exchange (DEX) aggregator that sources liquidity from various exchanges, enabling users to find the best prices across different liquidity sources. Other DEX aggregators include 1inch, KyberSwap, and OpenOcean. The goal of Matcha is to provide a seamless experience for accessing and trading tokens amidst the rapidly expanding token landscape.
The way Matcha achieves this is by finding the most efficient route for swaps across different DEXs. With cross chain swaps, bridges are added as potential routes for moving assets between chains. This ensures that users can choose the cheapest and most efficient route available.
The Cross Chain Swap Landscape
Currently, there are several options available for moving assets across different chains: DEX aggregators like Matcha, in-wallet transfers through Metamask, traditional bridges, and centralized exchanges (CEX) such as Coinbase or Binance.
Metamask supports cross chain swaps and offers convenience but charges high fees. CEXs also allow asset transfers between chains but involve fees and KYC requirements. Traditional bridges can be cumbersome, requiring users to wrap tokens and navigate gas fees on the destination chain. There’s also the risk of using illegitimate bridges. Matcha’s cross chain swaps only utilize trusted official bridges.
Sushiswap also offers a similar cross-chain swap feature and has generated significant volume since its launch in August 2022.
Hot Take: Simplifying Cross Chain Swaps for Users
Cross chain swaps are more than just technical bridgesβthey represent a comprehensive product layer that streamlines the trading process for users. With Matcha’s new service, traders can enjoy cross chain swaps without any additional costs. Say goodbye to juggling different platforms and websites, as Matcha provides a seamless experience for trading assets across Ethereum-compatible networks.
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