Matcha leverages Tx Relay API to bring users the most frictionless trading experience in DeFi

Discover how Matcha removes friction in the DEX trading experience with gasless swaps.

Published on
November 30, 2023
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Matcha leverages Tx Relay API to bring users the most frictionless trading experience in DeFi

“The typical DEX trading experience is far from seamless. Tx Relay API allows us to offer users the most frictionless experience in DeFi with gasless swaps, lower revert rates, and faster trade confirmations. Since launching the new Matcha, we’ve seen a 20% increase in daily active traders overall QoQ and 70% of users now trade with our new transaction mode, Matcha Auto.” - Emanuele Lanni, Product Manager at Matcha

Highlights

  • Simplified UX: Matcha is utilizing Tx Relay API to power Matcha Auto, a new proprietary gasless transaction mode built to simplify the DEX user experience.
  • Faster, Better Trades: Using Tx Relay API, Matcha Auto has been able to reduce failed trades by 85% compared to popular DEXes, confirm transactions on chain by an average of 1 block earlier, and protect thousands of trades from MEV attacks.
  • Increased User Activity: Following the release of Matcha Auto, Matcha saw a 7% increase in the number of trades QoQ, while the number of daily active traders grew by 20%.
  • High User Retention: 70% of Matcha users now trade with Matcha Auto, signaling this is a desirable feature to users.
  • Ease of Integration: Using Tx Relay API, the Matcha team was able to ship Matcha Auto in less than 2 months from start to finish.

What is Matcha?

Launched in 2020, Matcha is a DEX aggregator built by 0x that offers the widest market coverage in the crypto ecosystem. Traders on Matcha have access to more than 4 million tokens and liquidity from 100+ DEXs, across nine different blockchains.

Matcha offers a number of features that help make it easy to use, including the newly launched Matcha Auto powered by Tx Relay API. In this case study, we’ll take a look at how 0x Tx Relay API enables Matcha to provide the most frictionless decentralized trading experience in DeFi.

The challenges of DEX trading

The typical DEX trading experience is far from seamless. A major source of friction for both new and experienced users is gas and the complexities it adds to DeFi. Any misstep can lead to trades getting stuck in the mempool awaiting confirmation or failing at high rates during times of network congestion. The reality of living in a multi-chain world means the burdens of maintaining sufficient balances of multiple native tokens and accounting for factors like network congestion are placed on the user.

All of these scenarios create friction for users trying to do a seemingly simple thing: make a trade.

Insufficient gas is one of the leading causes of drop-offs in the trading funnel.

Matcha has been focused on reducing these complexities to build the most frictionless trading experience in DeFi.

Building a frictionless trading platform with Tx Relay API

Using Tx Relay API, Matcha was able to launch Matcha Auto to significantly simplify the DEX experience and abstract away the complexities associated with decentralized trading.

Gasless swaps and approvals. 

With Matcha Auto, users can make on-chain transactions without paying any gas fees, including for token approval. When trades are made, Tx Relay API covers the gas fees up front, and the token approvals are combined into the transaction. This cost is then wrapped into the trade and is paid by the user in the form of the token they’re trading. This significantly simplifies the onboarding flow for new users to Matcha, and allows them to begin trading right away with any token already in their wallet.

Greater trade reliability.

Trading on DEXs can be unreliable. On average, 8-10% of DEX transactions fail, and during periods of network congestion that can spike to as high as 20%. For users, this can create uncertainty over their transactions and significant frustration. Using Tx Relay API, Matcha Auto performs a simulation of transactions before submitting so it can stop potentially bad transactions before they’re even sent, saving the user gas fees and headaches. If a transaction does fail to go through because of a spike in gas prices, Matcha Auto covers the cost and automatically sends the transaction back to the blockchain without requiring any further action from the user.

MEV protection.

Sandwich attacks target transactions in the public mempool, resulting in worse prices and a poor experience for users. Using Tx Relay API, Matcha Auto protects users from MEV by leveraging the latest advancements in the MEV space, ensuring that trades don’t get front-run or sandwiched in the mempool by bad actors. Tx Relay API routes the transaction privately to the block builders, completely protected from MEV attackers watching the mempool.

Faster trade confirmations.

Sometimes just a few cents in gas fees can be the difference between a transaction going through quickly and one getting stuck in the mempool awaiting confirmation. Tx Relay API enables Matcha Auto to dynamically adjust gas prices for users in real-time by simulating transactions and optimizing for speed, which can help confirm transactions on chain by an average of 1 block earlier.

Competitive prices.

Tx Relay API comes with access to deep liquidity from 100+ AMMs and professional market makers. On a technical level, Tx Relay wraps Swap API’s world-class smart order routing into a highly optimized meta-transaction, allowing users to get the same great price without handling gas fees on supported trades. All trades on Matcha are automatically routed through the deepest liquidity, including exclusive RFQ liquidity, for easy access to over 4 million tokens.

The result: Improved conversion and high retention

Since the launch of Matcha Auto, the average revert rate on Matcha has dropped to 6%, compared to over 10% on competitors like 1inch and Uniswap. Matcha Auto revert rates are even more impressive, coming in at just 1.5% on average, making it the lowest revert rate in DeFi and resulting in 85% fewer failed trades compared to popular DEXes.

On top of more reliable transactions, Matcha Auto trades confirm 1 block faster on average compared to standard trades. Gasless swaps, lower revert rates, faster trade confirmations, and MEV protection all mean a smoother user experience, resulting in improved conversion and user retention.

Following the release of Matcha Auto, Matcha saw a 7% increase in the number of trades quarter over quarter, with usage increasing despite a marketwide decline in volume, while the number of monthly active traders grew 20%. Overall, 70% of Matcha users now trade with Matcha Auto.

Simplify user flows in your app with Tx Relay API

Tx Relay API enables you to improve conversion and reduce churn by offering gasless swaps directly in your app.

Join over a dozen teams, including Robinhood, Coinbase, and Matcha, already building with Tx Relay API. Check out our quick guide to get started today.

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