DeFi Matcha: Best Token Swap Ever?

DeFi Matcha: Best Token Swap Ever?

By tomoyan | tomoyan | 30 Jun 2020


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As DeFi becoming popular, token swap services are popping up everywhere.

There are so many token exchanges and I have tried so many token swaps, but so far I like these two

  • Uniswap: on-chain token exchange platform
  • KyberSwap: cross-chain token exchange platform

Both of them are pretty easy to use, simple and fast token swaps.

Today, I got an early access to Matcha, crypto token exchange platform (it is still in beta and testing/developing phase) developed by 0x.

features

source

Those are the main features of Matcha and the most important thing is the price aggregation.

I think KyberSwap also does price aggregation but anyway, Matcha aggregates multiple liquidity platforms and find the best exchange price.

Price aggregation is kind of like airline ticket price match. Matcha will go through different sources and find the best rate for your token swap.

When you swap BAT to ETH for example, Matcha will sample multiple data from different platforms and optimize the "fill path".

Matcha will price match BAT -> ETH trade on Uniswap, KyberSwap, Oasis, Curve and all the other decentralized exchanges to find the best rate.

But Matcha is more

When we trade tokens we normally think about direct path from BAT to ETH, but Matcha goes further and splits a path into multiple paths.

BAT -> token X -> token Y -> ETH and then check each path against different platforms  and merge them together so that BAT -> token X could be Uniswap, token X -> token Y could be KyberSwap, token Y -> ETH could be something else to find the highest overall return.

Sounds like a winner...

But does Matcha really offer the best price possible?

Here are my results (i actually didn't swap tokens just checked the estimated rates)

Matcha: 141.682 ZRX -> 176.3299 BAT 

matcha

Uniswap: 141.682 ZRX -> 177.322 BAT 

uniswap

KyberSwap: 141.682 ZRX -> 176.0613 BAT 

kyberswap

So just looking at these results, Uniswap gave me the best price and Matcha 2nd, KyberSwap the worst.

I am not saying this is always the case and Uniswap is always the best or anything. I didn't actually swap tokens and also Matcha includes slippage and gas fees when they calculate the rate so that Matcha still could be the best overall.

Funny thing is that

When I got the trade estimate from Matcha it searched 6 exchanges and saw this "fill path".

matcha path

It was straight up 100% Uniswap... so I don't know exactly what is going on but like I said, Matcha is still in beta so it could be improved...

Matcha UI is King

Uniswap and KyberSwap are both simple and easy to use but I would have to say I love the Matcha UI.

I think Matcha UI is the best overall for sure. I think showing the price change % is a nice touch too.

matcha ui

Currently, Matcha only supports 21 assets, but it seems like they are going to add more tokens that are high demand and high liquidity.

Since DeFi is getting more attentions and becoming popular if they can pull this off this is going to be huge!

You can get on the waitlist here.

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tomoyan
tomoyan

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