We are thrilled to announce that several new tokens are available to trade on 

). These are among the most requested tokens from the DeFi community due to their use in 

. For those that don’t frequent crypto Twitter or the 4chan biz forum, yield farming is a recent trend where crypto traders seek to earn additional tokens by providing capital and liquidity to protocols via structured incentive programs. Development teams create these programs in order to attract capital to their pools and distribute their project’s token in order to decentralize ownership.

This post gives an overview of how traders can use Matcha to increase their yield farming returns, as well as brief descriptions of the newly listed tokens that explain their function within their respective protocols.



Warning: Yield farming includes a nascent set of strategies that can be extremely risky. These liquidity programs often advertise very high interest rates and token compensation incentives that can be misleading. Yield farming presents a whole host of new economic risks, in addition to current DeFi risks like smart contract security, liquidations, etc. Matcha does not endorse yield farming strategies or the tokens themselves. Proceed with extreme caution.

A core part of a yield farmer’s strategy is to quickly and cheaply swap for tokens that take advantage of changing market conditions including:

: Many of these tokens have constantly adjusting interest rates which farmers can exploit. As an example,

 started the month of July around 0.75% and is now over 8.25%, while the USDT lending rate decreased from 3.13% to 2.02% during the same period. A simple YF strategy would be to swap USDT for DAI to earn the higher rate, all while earning COMP tokens (more on Compound later).

 Dev teams change their incentive schemes to attract more capital to their protocols. For instance, Aave is introducing a new token distribution mechanism dubbed “

”, which will include awarding users for supplying and borrowing assets from the protocol.

 Recently, certain tokens have increased in value substantially due to sudden swings in demand. For instance, YFI is up almost 11000% from its all-time low of $32 a couple weeks ago. Farmers may then start allocating more funds to yEarn pools where they may be able to receive additional YFI,

 Farmers often want to trade into stablecoins like USDC, USDT, and DAI to take profits from their yield farming rewards or protect their portfolios against falling prices

Matcha offers farmers and DeFi users the best prices on every token trade, as we aggregate liquidity and scan across decentralized exchanges so traders don’t lose money on

. Farmers can securely trade in seconds on Matcha because no sign up is required and token swaps are executed completely peer-to-peer. 

Matcha is simply the best place for farmers to quickly trade tokens, as we now offer all of the most popular YF tokens including LEND, BAL, YFI, AMPL, UMA, COMP, SNX, etc. and are frequently adding new tokens and liquidity.


https://twitter.com/patrykadas/status/1288419882040795136

Before jumping into the newly listed tokens, let’s start with 

, which popularized and kicked off the yield farming mania. Compound Labs issued COMP tokens (which have been listed on Matcha since launch) to users who supply and borrow tokens through their protocol. COMP is a governance token that enables community members to vote on proposals to change the system. Governance is a core function with many of these yield farming tokens and a primary reason why these token distribution programs started in the first place.

Aave, a flash loan and money market protocol

, is in a transition period with their token economics. LEND is the protocol’s current token, which will be phased out and redeemed 100:1 with the soon-to-be-released AAVE token. Holders will be granted the ability to vote on Aave Improvement Proposals (AIPs) that can change both market policies (determining new asset listings, loan-to-value (LTV) ratios, and interest rate modeling) and protocol policies (e.g. bug fixes, platform incentives, etc.).

Yearn.finance is an DeFi yield aggregator that automatically allocates user funds between dYdX, Aave, Compound, and other interest-generating protocols to find the highest rates. YFI is the system’s governance token which is being distributed to users who supply liquidity to various yEarn pools, as well as a Balancer pool.

Dig into the details of yEarn and YFI in 

AMPL is a new type of cryptocurrency where the supply of tokens fluctuates daily, but holders’ overall ownership percentage doesn’t become diluted or change. While AMPL is not a stablecoin, the goal of Ampleforth is to create a token which is soft pegged to the 2019 US Dollar in terms of purchasing power and to create a token that is uncorrelated with other cryptoassets. AMPL wallet balances automatically change every day based on demand for the token and the current price compared to a targeted price. This daily adjustment is known as the rebase.

To accelerate the growth of the system, the Ampleforth development team is currently offering additional AMPL tokens for providing liquidity through their Geyser program. To learn more about how Ampleforth works under the hood, check out the video below.


https://www.youtube.com/embed/e-8yjmsshFg

Balancer is another AMM protocol similar to Uniswap, except the system's liquidity pools are highly customizable and include a self-adjusting distribution mechanism. BAL is the native token currently being awarded through an incentive program to users who provide liquidity. Like the previous tokens, the main function of BAL is to grant governance rights to the community in order to decentralize ownership of the protocol.



How to increase your yield farming returns by trading on Matcha

Increase your yield farming returns with Matcha

Since our recent launch, we’ve had an overwhelmingly positive response from the DeFi community on their trading experience with 

over $50 million in cumulative trade volume

. The most common question we’ve received is how Matcha surfaces better prices than individual DEXs and other aggregators. To answer this, we need to explore 3 components that Matcha uses under the hood. First, Matcha scans across all 

 to find you the best price at that moment. Once the best price is identified, Matcha uses smart order routing to ensure your trade is completed in a quick, efficient manner. And finally, to further reduce transaction costs for traders, we employ meta transactions and gas tokens so you save on 

.

All three of these functions happen automatically and are abstracted away so you can have a stress-free trading experience. This post dives into each of these aspects that contribute to better prices and explores how Matcha gives traders better prices not only compared to individual DEXs, but also to leading centralized exchanges.

https://twitter.com/matchaxyz/status/1278053856895590400

Over the past few years, there has been a lot of experimentation in ways to build DEX networks. 0x uses an order book model similar to that of Coinbase/Binance, where buyers and sellers are matched peer-to-peer to determine the price of an asset. 0x’s model has worked well for larger trade sizes for popular token pairs. Protocols like Uniswap and Curve use an 

 where a pre-defined algorithm determines prices. AMMs have served long-tail token pairs well and function adequately for small trade sizes, but are not efficient as trade sizes increase. Kyber is an on-chain system where traders can tap into liquidity pools, known as reserves, to swap tokens. There is also a swarm of individual liquidity providers who have deployed off-chain request for quote (RFQ) systems that enable traders to connect directly with market makers to fill the total amount requested.

The bottom line is that there are a variety of exchange models, each with unique advantages and disadvantages. Wouldn’t it be great if there was an exchange that combined all the benefits? Enter DEX aggregation. Matcha aggregates all of these networks together in order to find the best price possible. Once the best rate is identified, Matcha’s order routing algorithm automatically splits transactions across these different DEXs to maximize the overall return for traders. We call this process smart order routing. You can learn more about how this algorithm works 

It is analogous to how Expedia aggregates the best routes and prices from airlines to help travelers get the best deals.

 Matcha takes it a step further in the sense that it automatically executes a transaction once the best price is found, so users don’t have to worry about price hunting when they want to trade.

If you’re a developer interested in the inner workings of DEX aggregation, you can learn about how Matcha connects with 

. There are a growing number of DeFi projects that use 0x API for exchange functionality and continued access to the deepest liquidity sources available.


If you have used an Ethereum-based app recently, you have almost surely noticed that gas fees have increased substantially. We have been testing out a few different mechanisms to reduce fees for users so they can trade without having to worry about Ethereum network congestion. The first of which are 

, also known as gas-less trades. Meta transactions, allow traders to interact with Ethereum without paying for gas fees, leading to a seamless trading experience because users no longer need to understand how blockchains work or the dynamics of the fee market. Meta transactions enable Matcha to sign and authenticate transactions on behalf of traders to pay for their gas fees.

, which allow us to harvest tokens and lock in low gas prices to be deployed when gas prices rise. It is important to note that we are not using these mechanisms on all trades. However, we encourage everyone to help us test out meta transactions and gas tokens so we can learn how we can use them long-term to improve the DEX trading experience!

Find out how Matcha offers the best crypto prices across Ethereum

How Matcha finds the best prices for DeFi traders

Today, we’re thrilled to finally release Matcha into the world, a simple decentralized crypto exchange designed for everyone! After nearly 3 years of building the 0x protocol and enabling others to build great DeFi products, our team had a ton of new ideas for how we could make it easier for more people to access exciting new markets.

https://www.youtube.com/embed/AxoWTVt5As0

, we believe that tokenization combined with global peer-to-peer markets will help to eliminate the geographic lottery and unlock latent human potential. That is why we set out to rethink the exchange experience and build the foundation to onboard the next wave of crypto traders.

First, you’ll notice that the homepage features token shortcuts and a search field. On other exchanges, navigating to markets requires clicking into two different dropdown menus to find the assets you’re looking for. With Matcha search, you can quickly type out whatever token or pair you’re looking for and immediately jump into that market to begin trading.

Eventually there will be hundreds of assets with thousands of different pair combinations you can trade. So, we wanted to make it as fast as possible for traders to find and navigate to whatever markets they’re looking for with fewer interactions, no matter where they are on Matcha.

Under the hood, Matcha splits trades across 0x Mesh, Kyber, Uniswap, Curve, Oasis, and our own proprietary liquidity sources to find the best prices for traders. As our team adds additional liquidity sources, Matcha will continue to improve to ensure traders are receiving the best prices the market can offer, which reduces time and effort spent price hunting.

On most exchanges, tokens aren’t given nearly enough prominence or the love they deserve. They are merely a list item hidden inside a dropdown menu. Traders are required to learn about and discover these assets on their own time. We believe a good exchange should make it easier for people to learn about the things they’re investing in. That’s why we’ve invested in building out asset pages which will serve as a destination for people to discover and learn about new tokens. We look forward to improving these alongside the various token projects and communities over time.

Most exchanges and DeFi products require you to be an expert going in. We heard time and time again from people who use DEX’s regularly, that they can still sometimes be scary. Whether it’s losing money due to extreme slippage or fat fingering a trade. We want to make sure that you always feel smart and in control when you’re using Matcha. We make sure that we tell you what is going on, we use friendly language and protect you and your money.

We want everyone to feel comfortable and confident trading on Matcha. Which is why we will continue to invest in education, new user onboarding and abstracting away the complexities of the blockchain wherever possible.

We’re really excited for you to start trading on Matcha! Please don’t hesitate to reach out to us on 

 if you have any questions. We’d love to hear your ideas for how we can make Matcha even better. Thank you to everyone who already shared feedback during the beta, your input was vital.

Finally, I’d like to give a huge thank you and shoutout to the team for all the incredible work! 

Today, we’re thrilled to finally release Matcha into the world, a simple decentralized crypto exchange designed for everyone!

Increase your yield farming returns with Matcha

How Matcha finds the best prices for DeFi traders

Say hello to Matcha!