MetaMask Just Destroyed Uniswap And All DEX’s
MetaMask is currently the golden standard as an Ethereum wallet.
Anyone who is familiar with cryptocurrencies already knows this.
It has an amazingly simple and beautiful UI/UX that functions as a Google Chrome and Firefox Browser Extension.
But up until now, it has been seen as “just an Ethereum Wallet”.
It was just announced that MetaMask will enable a token-swapping feature for ERC-20 tokens.
Previously, if you wanted to exchange any Ethereum based token, you had to visit a centralized exchange (like Coinbase or Binance) or use any of the popular decentralized exchanges DEX (Uniswap, 1inch, Paraswap, etc.).
Similar to the way that 1inch functions, the new MetaMask feature will aggregate all decentralized exchanges for liquidity, and provide the user with the best deal on the open market.
Up until now, these have been the only way to safely trade or swap Ethereum based tokens.
The increasingly popular DEX Uniswap has just faced it’s largest blow to date due to the news.
Just last month, the extremely popular DEX came out with their own utility token to be used on their network as a fee given to liquidity providers.
Every single wallet that had ever interacted with Uniswap prior to the release of the token automatically received 400 tokens for being a user on the network.
$UNI started trading around $4/token, which excited most users as it was essentially just “free money”. It quickly ran up to $8, but has been on a steady decline since then and as of right now, currently trades just under $3.
MetaMask will likely build in it’s own fees for providing the aggregation service.
The coin had been dropping prior to the news being released. So who know if insiders were dumping or not.
Good for Ethereum — Bad for $UNI and $CHI holders
While those that currently have a lot of $UNI or $CHI (tokens associated to DEX’s) are down on their investments, this is great news for the Ethereum community.
The fact that users can trade across all DEX’s with a simple and safe browser extension removes a lot of the friction that surrounds trading.
DEX’s are not going away and they serve a large purpose in the community.
A big reason that Ethereum hasn’t been so widely adopted is due to this barrier to entry, it’s intimidating and all of these DEX’s are too confusing to the common person.
Let us know what you think about this recent news!