Based on the extensive thread by TCB (@THORmaximalist), MetaMask’s new feature, Snaps, has just upped the game in decentralized finance (DeFi). Developed in collaboration with ShapeShift, MetaMask now supports a variety of cryptocurrencies besides Ethereum, including Bitcoin, Litecoin, Dogecoin, Cosmos, Bitcoin Cash, and Thorchain, with more to be added soon.
What you'll learn 👉
Key Features:
- Ease of Use: Creating wallets for these new cryptocurrencies is simple and tied to your existing MetaMask root key. Installation takes less than a minute.
- Cost-Effectiveness: According to TCB’s own test, swapping from Ethereum to Bitcoin within MetaMask could potentially be up to 20 times cheaper than using centralized services like crypto.com.
- Decentralization: The feature enables permissionless, trustless, decentralized, and censorship-resistant multichain swaps, putting more power into the hands of individual users.
- Technology: Under the hood, Thorchain serves as the multichain liquidity engine, while ShapeShift aggregates assets from other decentralized exchanges (DEXes) like Uniswap.
- Streaming Swaps: The low fees are achieved through a feature called Streaming Swaps, which utilizes Time-Weighted Average Pricing (TWAP).
- Donation-Based Fees: Unlike other platforms that include built-in fees, ShapeShift employs a donation-based model for those who can afford to contribute.
Criticisms:
The primary criticism, as pointed out by TCB, is the absence of hardware wallet support for non-Ethereum Virtual Machine (EVM) keys. This is a crucial feature for users who prioritize security and hopefully, it’s something MetaMask will address soon.
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Show more +Simplifying DeFi:
The most notable takeaway is that MetaMask and ShapeShift are simplifying the DeFi experience, making it more accessible and user-friendly. A single wallet now powers all supported blockchains, streamlining the experience and potentially driving broader adoption of decentralized financial products.
Final Words:
The development is a commendable achievement for the ShapeShift team, which, as TCB highlights, is a small independent organization making a significant impact on the DeFi landscape. This shift towards decentralized, multichain capabilities is not only a technological leap but also represents a significant move towards real-world adoption of DeFi.
For those interested in checking out the functionality, TCB suggests watching a video by Eridanus that demonstrates how to install the plugin and execute a swap in less than 60 seconds.
In summary, based on TCB’s insights, this is an exciting advancement in the world of decentralized finance, lowering barriers to entry and making transactions more efficient and cost-effective.
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