MetaMask swap fee: too high, too greedy

[MrSpasybo 1049]

MetaMask, one of the most popular web wallets for cryptocurrency platform Ethereum, went mobile on iOS and Android in September 2020.

This changes today. The new version of MetaMask Mobile allows users to swap one token for another.

For this feature, MetaMask is using multiple DEXs (decentralized exchanges) and AMMs (automated market makers) to find the best price for a particular token.

The company also says its calculations of gas prices (gas fees are fees for transactions on the Ethereum network, which dynamically change as a result of multiple factors, including network congestion) will result in reduced gas costs. Finally, MetaMask employs slippage protection, by spreading orders across multiple exchanges to reduce slippage costs. 

 

For its troubles, MetaMask takes a service fee of 0.875 percent, which is automatically factored into each quote. The fee is used to support ongoing MetaMask development, the company says.

 

Source: Crypto wallet MetaMask now lets you swap tokens on your phone

First of all, I must admit that I am a fan of MetaMask, since Metamask is the first ERC-20 wallet application I trust, I even like it more than MEW because its extension allows easy access access on personal computers with passwords, and manage multiple ERC-20 wallets easily. Currently, MetaMask also supports both BEP-20 and EVM-based blockchains, which is very convenient indeed.

 

I have been looking forward to the MetaMask application on mobile devices, and the release of the application by MetaMask, is very convenient and easy, I am very pleased. However, the swap feature of MetaMask made me really disappointed.

 

MetaMask transaction fee of up to 0.875%, even higher than UniSwap's fee of 0.3%, is more frightening than the transaction fee of the exchange is 0.1% - 0.2%. In addition to the 0.875% fee, users also need to pay additional transaction fees of the Ethereum blockchain, ranging from $5-50. I really don't understand why MetaMask can be so greedy, they can set a 0.3% fee like UniSwap for users to benefit more, and all the transaction fees go into MetaMask's pocket, not divided to LP.

 

I tried opening the MetaMask application and was amazed at the ridiculously high fees of MetaMask: $68-99 to send $124.

 

Have you tried using the Swap feature on MetaMask yet? What do you think about transaction fees at MetaMask? Will you choose MetaMask or UniSwap/SushiSwap/1inch?

[selfmade 7]

I do not think that it has something to do with the greediness, I believe the fees went high because ethereum fees went high. You see metamask is for ethereum tokens.

[MrSpasybo 1049]

12 hours ago, selfmade said:

I do not think that it has something to do with the greediness, I believe the fees went high because ethereum fees went high. You see metamask is for ethereum tokens.

@selfmade 

We will compare transaction fees of UniSwap  and MetaMask. For example I want to swap 1 ETH to 1000 AME (example).
+ UniSwap: fee paid for LP = 0.3% = 0.003 ETH
Transaction fees of Ethereum blockchain, about 10 USD = 0.005 ETH (1ETH = 2K USD)
In total, it costs 0.008 ETH.
+ MetaMask: fee paid for MetaMask = 0.875% = 0.00875 ETH
Transaction fees of Ethereum blockchain, about 10 USD = 0.005 ETH (1ETH = 2K USD)
In total, it costs 0.01375 ETH.

0.01375 = 0.008 * 172%
Obviously, Ethereum's internal transaction fees are not the cause. The reason lies in the transaction fee of MetaMask is too large: 0.875%> 0.3%.

[Whited35 15285]

On 4/18/2021 at 6:52 AM, MrSpasybo said:

Have you tried using the Swap feature on MetaMask yet? What do you think about transaction fees at MetaMask? Will you choose MetaMask or UniSwap/SushiSwap/1inch?

Nope, just by locating the transactions fee that is more than 0.8% ! I even stopped to use widely used DEX i.e. Uniswap due to the higher transaction fees which are extra than the flat 0.3% fee that will deducted while swapping the currencies. I am comfortable to prefer BSC to transfer ETH and trade it in Binance instead of using these sort of expensive DEXes.