MetaMask’s Native Token Swaps is Just the Beginning

MetaMask’s Native Token Swaps is Just the Beginning

October 7, 2020 Decentralized Finance DeFi Infinity Vest 0

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MetaMask’s Native Token Swaps is Just the Beginning

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.

This new functionality is likely to be just the beginning.

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.

1 Million Users

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 may 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 man, many use cases.”

 

Decred

Contributor: Permabull Nino, Decred On-Chain Researcher

  • Decred is a young network in the process of bootstrapping, and with that comes heavy influence from miners in relation to price movements. The “Mining Pulse” is a tool which tracks the average network block time versus the network target of 5 minutes per block. Extremes in excess of +/- 2 seconds have historically shown periods of miner distress, and also marked historical DCRBTC tops (see red arrows). Consistent values close to zero represent “equilibrium mining”, where block times are very near the network target of 5 minutes. Equilibrium mining provides ideal conditions for reversing a downtrend, and the current mining pulse shows the network is getting closer to reaching this state (see white box in graphic above).

  • Decred is a hybrid Proof of Work + Proof of Stake network, and Decred stakers lock DCR into “tickets” to accumulate block rewards / lock in governance rights over the network. These tickets, in some respects, can tell us a lot about holder sentiment with increases in staking demand showing high sentiment (and vice versa). In early 2020, the 142-Day ticket pool inflows dropped to 0 DCR – the lowest value in the project’s lifetime and likely a signal of staker capitulation. Since then ticket pool inflows have recovered to ~400k DCR over the past 142 days, signaling that DCR capitulators’ coins have found new owners.

  • The Decred Treasury is the lifeblood of the project, as it funds an army of contractors (via block rewards) to build on it without depending on third parties for funding. Thus, it is important to keep the Treasury Balance + Flows at healthy levels. The current Treasury Balance sits around 640k DCR and has been around this level for most of 2020. Furthermore, for the first time in the project’s history the rolling 90-Day flows of DCR into the Treasury went negative. These negative flows seem to be in an early-stage reversal back to positive territory, with flows remaining positive after a recent contractor payday.

  • With a great treasury comes great…budgeting responsibility. By taking the current Treasury Balance, future Treasury block rewards, and current Treasury payment data we can budget how many months of runway the network has before exhausting its funding. As can be seen in the chart above, the current Treasury Balance is around ~$8M USD with a projected 94 months (~8 years) of runway. It’s worth noting that at peak 2017 bullish price action the Treasury had over 1,000 months (~80 years) of projected runway.

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