DeFi

·

January 31, 2024

What is a cross chain swap?

Anthony Allen

A cross chain swap trades tokens directly for a token on a different network. As a simpler layer on top of complex bridges, you don’t need to worry about wrapping or routes to get the token you want.

Crypto has grown to include hundreds of different blockchains, each with their own advantages and use cases. To get the most out of web3, you need to be able to move assets from one network to another seamlessly. But bridging assets can be a headache, where you first need to swap into a compatible wrapped or native token, send it to a bridge, and then swap again once your assets come out the other side.

Cross chain swaps let you do it all in a single trade. That makes it easy to move assets where you need them, so you never need to miss a trading opportunity again. Instead of jumping between platforms, you can do it all on Matcha, the DEX aggregator from 0x. 

How a cross chain swap works

A cross chain swap is a combination of existing technologies: swaps (market orders) and bridges. Combined, these tools provide a more seamless experience that is better than just using a bridge. Instead of manually swapping for a bridgeable token, bridging it to a new chain, and then swapping for another, multiple steps are combined into one.

How to use cross chain swaps to move USDC on Optimism to ETH on Arbitrum
Trade across chains directly for the token you want.

Just choose a token to sell and a token you want to buy on another network, confirm the transaction and wait for your trade to complete. First, your assets will be swapped for the token you want to have on another chain, then a compatible bridge will be selected from a long list of verified options, favoring the option which delivers the best value, and finally the token will then be moved across. 

Try cross chain swaps for free on Matcha!

Using the new cross chain feature can save you time, energy and money by finding the best route across networks and giving you direct access to the token you want without extra steps. That means you benefit from lower opportunity cost and competitive pricing, without having to spend time finding the right bridge for your particular needs.

Cross chain on Matcha delivers better value

A cross chain swap on Matcha combines a bridge aggregator with a DEX aggregator, so you get the best value at both stages. With the deep liquidity of over 100 DEXs, the swap side of your cross-chain transaction benefits from lower transaction costs, minimal price impact, and fewer failed trades than any other DEX or DEX aggregator!

A diagram showing the difference between a bridge and a cross chain swap.
Cross chain swaps remove the friction of performing multiple steps.

The second stage of a cross chain trade is picking a bridge to use. Matcha uses the Socket API to aggregate bridges and find a route across blockchain networks that delivers the best value. Once the optimal route is found, it is up to you if you want to proceed with the cross chain trade.  

Matcha will return a quote that includes the cost of all transactions combined as soon as you enter details of your trade, so you know how much you are paying in onchain fees for both the swap and the bridge stage, and how many tokens will land in your account when the cross chain swap is complete. 

Fast execution and better pricing

Onchain trading can be a complex process. That’s because decentralized networks rely on smooth communication across dozens of interconnected nodes, so delays can lead to inconsistent pricing and failed trades. 

Without the right infrastructure, some DEXs make compromises in order to complete your trade. That can include high slippage, caused by prices changing before your trade, frontrunning caused by leaking data about your trade, or long execution times caused by trying to batch many transactions together to avoid the previous issues.

As a search engine for tokens and liquidity, Matcha finds you the best price via smart routing. Bridges are essentially another type of route, with multiple options for how to execute cross-network trades in the optimal way. Now with cross chain swaps, you have access to millions of tokens across different networks at the best price.

Matcha is built by 0x, one of the leading infrastructure companies in crypto, and uses 0x APIs to ensure swaps and limit orders deliver the exact value you are quoted when you place your trade, within seconds rather than minutes. By aggregating liquidity from across DeFi, you can safely swap over 4 million tokens without worrying about price impact or reverted transactions. 

Keeping your funds safe

Bridges typically utilize smart contracts to automate and secure the path of tokens from one network to another. They lock up assets on the source blockchain and then issue tokens on the target blockchain by following a set of programmatic rules. 

But bridges’ smart contracts can and have been exploited in the past, resulting in the loss of user funds. Using a bridge aggregator like Socket to manage the process helps keep your funds safe from these exploits, as it is not dependent on any single bridge and can therefore react quickly to reroute around any exploited smart contracts.

Bridge aggregation on Socket.

Socket is one of the most reputable bridge aggregators in crypto with over 3.5 million transactions processed and over $5 billion in volume. It is fully audited and every bridge it uses is evaluated based on security, performance and latency using a risk framework developed in collaboration with L2Beat. This ensures that all routes are verified to a high degree of confidence, so you can focus on trading. 

Many of the wallets and other crypto projects you interact with on a daily basis already use Socket in their products, including Coinbase, MetaMask, Rainbow and Zerion. The advantage of using cross chain swaps on Matcha is that you benefit from aggregated DEX liquidity as well as bridge aggregation, so you get the best value and avoid risk at every stage of the cross chain process.

Your gateway to Web3

Keeping up with the fast-paced development of crypto means you often have to be everywhere, all at once. Swapping on one exchange, placing limit orders on another, and bridging through a third can leave you spending more time managing browser tabs than actually trading. Not anymore! 

Matcha has all the tools you need as a crypto trader, in one place. We already deliver the best value on swaps and limit orders through aggregated DEX liquidity, protect your trades with MEV protection, and now bring the best cross chain experience through aggregated bridges, so you always get the most tokens for your money. Keep track of your cross chain purchases in the new Trade History tab to compare with your previous routes.

Enjoy all that DeFi has to offer with cross chain swaps on Matcha! No matter whether you’re just starting out with your first decentralized trade or need to move millions of dollars from A to B, you can rely on Matcha to deliver the most competitive rates, every time. Save time and money with the smoothest experience both onchain and cross-chain!

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DeFi

·

December 5, 2023

What is a cross chain swap?

What are cross chain swaps? and a screenshot showing the cross chain UI

A cross chain swap trades tokens directly for a token on a different network. As a simpler layer on top of complex bridges, you don’t need to worry about wrapping or routes to get the token you want.

Crypto has grown to include hundreds of different blockchains, each with their own advantages and use cases. To get the most out of web3, you need to be able to move assets from one network to another seamlessly. But bridging assets can be a headache, where you first need to swap into a compatible wrapped or native token, send it to a bridge, and then swap again once your assets come out the other side.

Cross chain swaps let you do it all in a single trade. That makes it easy to move assets where you need them, so you never need to miss a trading opportunity again. Instead of jumping between platforms, you can do it all on Matcha, the DEX aggregator from 0x. 

How a cross chain swap works

A cross chain swap is a combination of existing technologies: swaps (market orders) and bridges. Combined, these tools provide a more seamless experience that is better than just using a bridge. Instead of manually swapping for a bridgeable token, bridging it to a new chain, and then swapping for another, multiple steps are combined into one.

How to use cross chain swaps to move USDC on Optimism to ETH on Arbitrum
Trade across chains directly for the token you want.

Just choose a token to sell and a token you want to buy on another network, confirm the transaction and wait for your trade to complete. First, your assets will be swapped for the token you want to have on another chain, then a compatible bridge will be selected from a long list of verified options, favoring the option which delivers the best value, and finally the token will then be moved across. 

Try cross chain swaps for free on Matcha!

Using the new cross chain feature can save you time, energy and money by finding the best route across networks and giving you direct access to the token you want without extra steps. That means you benefit from lower opportunity cost and competitive pricing, without having to spend time finding the right bridge for your particular needs.

Cross chain on Matcha delivers better value

A cross chain swap on Matcha combines a bridge aggregator with a DEX aggregator, so you get the best value at both stages. With the deep liquidity of over 100 DEXs, the swap side of your cross-chain transaction benefits from lower transaction costs, minimal price impact, and fewer failed trades than any other DEX or DEX aggregator!

A diagram showing the difference between a bridge and a cross chain swap.
Cross chain swaps remove the friction of performing multiple steps.

The second stage of a cross chain trade is picking a bridge to use. Matcha uses the Socket API to aggregate bridges and find a route across blockchain networks that delivers the best value. Once the optimal route is found, it is up to you if you want to proceed with the cross chain trade.  

Matcha will return a quote that includes the cost of all transactions combined as soon as you enter details of your trade, so you know how much you are paying in onchain fees for both the swap and the bridge stage, and how many tokens will land in your account when the cross chain swap is complete. 

Fast execution and better pricing

Onchain trading can be a complex process. That’s because decentralized networks rely on smooth communication across dozens of interconnected nodes, so delays can lead to inconsistent pricing and failed trades. 

Without the right infrastructure, some DEXs make compromises in order to complete your trade. That can include high slippage, caused by prices changing before your trade, frontrunning caused by leaking data about your trade, or long execution times caused by trying to batch many transactions together to avoid the previous issues.

As a search engine for tokens and liquidity, Matcha finds you the best price via smart routing. Bridges are essentially another type of route, with multiple options for how to execute cross-network trades in the optimal way. Now with cross chain swaps, you have access to millions of tokens across different networks at the best price.

Matcha is built by 0x, one of the leading infrastructure companies in crypto, and uses 0x APIs to ensure swaps and limit orders deliver the exact value you are quoted when you place your trade, within seconds rather than minutes. By aggregating liquidity from across DeFi, you can safely swap over 4 million tokens without worrying about price impact or reverted transactions. 

Keeping your funds safe

Bridges typically utilize smart contracts to automate and secure the path of tokens from one network to another. They lock up assets on the source blockchain and then issue tokens on the target blockchain by following a set of programmatic rules. 

But bridges’ smart contracts can and have been exploited in the past, resulting in the loss of user funds. Using a bridge aggregator like Socket to manage the process helps keep your funds safe from these exploits, as it is not dependent on any single bridge and can therefore react quickly to reroute around any exploited smart contracts.

Bridge aggregation on Socket.

Socket is one of the most reputable bridge aggregators in crypto with over 3.5 million transactions processed and over $5 billion in volume. It is fully audited and every bridge it uses is evaluated based on security, performance and latency using a risk framework developed in collaboration with L2Beat. This ensures that all routes are verified to a high degree of confidence, so you can focus on trading. 

Many of the wallets and other crypto projects you interact with on a daily basis already use Socket in their products, including Coinbase, MetaMask, Rainbow and Zerion. The advantage of using cross chain swaps on Matcha is that you benefit from aggregated DEX liquidity as well as bridge aggregation, so you get the best value and avoid risk at every stage of the cross chain process.

Your gateway to Web3

Keeping up with the fast-paced development of crypto means you often have to be everywhere, all at once. Swapping on one exchange, placing limit orders on another, and bridging through a third can leave you spending more time managing browser tabs than actually trading. Not anymore! 

Matcha has all the tools you need as a crypto trader, in one place. We already deliver the best value on swaps and limit orders through aggregated DEX liquidity, protect your trades with MEV protection, and now bring the best cross chain experience through aggregated bridges, so you always get the most tokens for your money. Keep track of your cross chain purchases in the new Trade History tab to compare with your previous routes.

Enjoy all that DeFi has to offer with cross chain swaps on Matcha! No matter whether you’re just starting out with your first decentralized trade or need to move millions of dollars from A to B, you can rely on Matcha to deliver the most competitive rates, every time. Save time and money with the smoothest experience both onchain and cross-chain!

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