MetaMask introduces a fee-free swaps feature in ETH
Network fees will be integrated into the cost of swaps
22.11.2024 - 15:30
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What’s new? MetaMask’s non-custodial software wallet team has launched a new Gas Station feature that allows users to swap assets without having to hold native tokens of the Ethereum (ETH) blockchain to pay transaction fees. The feature is available on the main Ethereum blockchain for browser extensions in versions 12.6.0 and above and will soon be rolled out to the mobile app.
What else is known? For many Web 3.0 users, the lack of ETH to cover gas costs has become a major obstacle. Traditional solutions involve buying ETH on centralized exchanges (CEXs) and transferring coins to wallets, but this process is often time-consuming and expensive.
Gas Station is designed to simplify transactions and remove barriers for users of decentralized finance (DeFi) protocols by integrating network fees into the cost of a swap.
The new feature supports swaps for a range of assets, including ETH and its wrapped version (wETH), as well as the wrapped bitcoin wBTC and the stablecoins USDT, USDC, and DAI. By combining the liquidity of decentralized exchanges (DEXs), market makers, and aggregators, MetaMask provides competitive pricing and optimizes the user experience.
Coinbase has planned to delist wBTC after announcing its own wrapped bitcoin cbBTC
Trading of the asset from custodian BitGo will be halted on December 19
The Metamask solution reduces reliance on ETH to pay for gas for exchanges, but the broader activities of the Ethereum ecosystem, including staking and participation in DeFi protocols, still rely heavily on the native token.
Given the popularity of MetaMask, the innovation could reduce demand for ETH, with it already underperforming in the current market cycle. The exchange rate of the largest altcoin has grown by 45% since the beginning of the year, while the total capitalization of the crypto market has doubled. ETH is currently trading at $3291, having lost 1,1% overnight.
As for MetaMask, the new feature is part of a broader campaign to expand the service. In May, the wallet’s developer Consensys launched Smart Transactions technology to improve transaction efficiency, reduce gas costs, and protect users from malicious attacks by MEV bots.
In June, ETH staking pools were launched for wallet users, and in July, Consensys acquired digital asset protection solutions developer Wallet Guard. Wallet Guard’s improved phishing and malicious website detection tools were added to MetaMask.
In August, MetaMask launched a cryptocurrency debit card in partnership with Mastercard and Baanx for customers in Europe.
Consensys will cut its staff by 20% due to increased costs of litigation with the SEC
The company was accused of violating securities laws related to the MetaMask crypto wallet it developed
At the same time, Consensys has faced pressure from the US regulator. In June, the Securities and Exchange Commission (SEC) accused the company of operating without registration and selling unregistered securities. The regulator had previously filed similar lawsuits against a number of leading crypto firms, including exchanges Binance, Coinbase, and Kraken.
In November, Consensys announced the formation of the Linea Association, a non-profit organization headquartered in Switzerland, to promote decentralization of its Layer 2 (L2) zkEVM network. The Association plans to launch the Linea token in Q1 2025.
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