Matcha Unveils New Price Engine For Whales Trading on DEXs

Decentralized exchange (DEX) aggregator Matcha has launched a price engine for whale traders, dubbed Argon.

The new price engine, built by the team behind the 0x protocol, aims to improve onchain execution for traders who move up to $10 million, such as whales and treasuries, which might not use DEXs due to the inherent inefficiencies of using these types of platforms.

“This is really powerful because it enables us to fully utilize onchain and offchain liquidity, especially for really large trades,” said co-founder and CEO of Matcha, Will Warren. He explained to The Defiant that the protocol currently has a 93% win rate when executing a trade, which now will reach for 99% thanks to the new pricing engine.

Argon, as the new price engine is called, will offer a visualization of the exact route a trade will take through the Matcha protocol.

Argon pools together hundreds of liquidity sources, and its smart router splits large trades into smaller pieces across automated market makers (AMMs) and private market makers. Known as a multiplex trade, that split makes it so no individual trade is large enough to create a supply shock.

Additionally, the new router adds in multihop functionality, which taps into intermediate tokens with deeper liquidity to find the best price across all possible routes–then offer the “best route” for traders.

Permit2 For Extra Security

Matcha is also incorporating Permit2 into Argon’s tech stack.

Permit2 is a general building block developed by Uniswap that allows users better security hygiene. Warren called it a “really big deal,” and that it aims to fix one of the biggest risks in the Web3 space.

Until Permit2, users would offer protocols infinite access to their funds, even if they weren’t going to use the entire capital to trade. The problem, Warren explained, is that this creates the potential for losing your funds if the specific smart contract a user interacted with gets exploited in the future. “It can happen even if you haven’t used that contract in years,” he said.

But with Permit2, users can enforce one-time allowances, which prevents any funds that aren’t being used for a trade from being exploited in between transactions.

Behind the scenes, Matcha is powered by the V2 of the 0x Protocol, which offers a suite of APIs for an assortment of crypto-native needs on Ethereum.