Matcha is a decentralized cryptocurrency platform based on the 0x protocol. Employing such technologies as 0x API and 0x Mesh, the facility leverages aggregated liquidity and prices received from over 60 popular DEXes. Using smart order routing, the platform offers the best prices for its users.
The team standing behind the platform tries to create a clean, easy-to-use interface with the capability of swapping tokens on-chain without having to rely on any centralized instance. Chris Kalani, the Director of Design at Matcha, called it Robinhood for Ethereum-based assets in one of the interviews. During the development, much attention has been paid to the design, UX, and education of users as the exchange provides information on dedicated asset pages to keep customers informed about these assets.
The Matcha platform is supported by the 0x Protocol, the largest liquidity aggregating project based on Ethereum. 0x managed to raise more than 24 million USD within a day during the ICO that took place in 2017. Its specialists consider that tokenization along with P2P markets helps unlock human potential regardless of geographic location.
Moreover, the team that develops the 0x protocol enables others to build great DeFi products which seems to be an efficient tactic. Thus, on March 17, 2022, the team of the 0x project announced that tokenized all-time volume traded on 0x surpassed 150 billion USD.
The Matcha platform
Matcha has developed a convenient interface that comes with a search option that differs from a similar feature in other services where traders typically have to look for assets in the dropdown menus to start trading. Matcha improves the navigation by making it possible to type names of tokens or pairs you need and thus get to the market of your choice much faster.
Splitting trades across numerous platforms and proprietary liquidity sources, the platform finds the best prices for traders. The team adds new liquidity sources and continues to improve the mechanism enabling traders to get the most out of the platform.
What’s more, Matcha not only delivers trading functionality for listed assets but also provides detailed information about them, thus saving time for its customers. In contrast, most exchanges don’t worry about this aspect offering just a list of options without descriptions of assets attached making customers do research on their own. Striving to attain more users, Matcha has decided to use a different approach, alleviating this task for investors who can focus on trading without leaving the platform to explore the backgrounds of new assets.
Besides, the platform creates high-quality content for its users offering various tips and guides. Matcha tries to educate its users to raise the level of their trading activity and make their decisions more conscious. There are numerous blog posts teaching customers to trade their assets with better efficiency.
In April 2020, Matcha enlisted the most popular decentralized tokens such as BAL, LEND, AMPL, and YFI, which are widely used for yield farming activities. Also, in September 2020, DONUT tokens were added to the platform as well.
Features enrolled on the exchange help customers control their trading activities. The platform even shows the amount one can save using Matcha compared to Uniswap, for instance, and other platforms with lower prices. Moreover, the team of Matcha has designed the depth charts displaying the sources of liquidity for the traders.
On average, Matcha offers better prices than many DEXes and aggregators which is possible thanks to three key components. In addition to scanning across the DEX networks and individual market makers, the facility also uses smart order routing for fast and efficient trading. The reduction in price has become possible due to low transaction expenses achieved with meta transactions and gas tokens employed by Matcha.
Being embedded into the trading mechanism, all three functions operate in the background automatically without users noticing them. Thus, these features contribute to a stress-free experience. As a result, the customer base keeps growing thanks to better exchange rates on Matcha compared to similar platforms and even centralized exchanges.
As the platform aggregates a variety of different exchange models, it combines their benefits making the solution attractive to the users. It helps to discover the best prices that are available in the market at any given moment of time. When the best rate is found, the order routing algorithm employed by Matcha splits transactions across multiple decentralized platforms to make the most of the overall return for traders which makes up the essence of smart order routing algorithms.
The Matcha team compares this algorithm with the one used by the traveling platform Expedia which aggregates the best routes to help travelers get the best prices during their journeys. Matcha does the same but goes one step further. It executes all the deals automatically once the best price is discovered, therefore users don’t have to hunt for better prices when they trade. Third-party developers can explore the mechanism of DEX aggregation further via the widely used 0xAPI.
What’s more, the Matcha team has managed to resolve a very serious problem having reduced the gas fees that are growing as a result of the Ethereum network congestion. To avoid this effect, developers have decided to use meta-transactions, also referred to as gas-free trades. With their help, traders interact with Ethereum without network payments, while Matcha can sign and authenticate transactions on behalf of traders paying for their gas fees. Such an approach makes the trading experience seamless.
The aggregator of the platform includes over 13 liquidity sources that wisely split up orders across numerous exchanges. As a rule, Uniswap is the place that offers the best deals. Previously, Matcha used to be more expensive than Uniswap. However, access to Uniswap liquidity has become easier and cheaper thanks to 0x API innovation powering Matcha platform. In the majority of cases, the prices one can find on Matcha are better than those offered by such exchanges as Dex Ag, 1inch, Uniswap, and Paraswap.