📄️ Overview
Multiswap is not just another AMM. It is a new DeFi primitive designed to replace traditional exchanges and reshape global capital markets. Unlike existing automated market makers (AMMs) that rely on constant product formulas or fragmented liquidity pools, Multiswap introduces a first-principles approach to on-chain trading, liquidity management, and asset allocation.
📄️ Financial Principles
Multiswap is built on a set of core financial principles that fundamentally differentiate it from traditional automated market makers (AMMs). These principles are designed to address the inefficiencies and limitations of existing DeFi protocols, offering a mathematically sound and self-consistent framework for liquidity provision, price formation, and trading execution.
📄️ Multitoken
Multitoken serves as the foundation for bookkeeping in Multiswap, enabling precise tracking of reserves, collateral, liquidity positions, staking, governance, and reward distribution all in the same contract. Multitoken introduces subaccounts using a hierarchical tree data structure with native support for both debit accounts (asset) and credit accounts (liabilities and equity) in support of double-entry accounting making it suitable for advanced large-scale DeFi applications.
📄️ Staking Rewards
One of the biggest challenges in designing a staking rewards system is protecting against mercenary farming—where users stake only to farm rewards and leave as soon as incentives dry up. Traditional staking models, like those used in Aave, Synthetix, and Compound, function like a firehose, spraying rewards over a predetermined period. This approach attracts short-term liquidity but often leads to rapid outflows once the incentives disappear.
📄️ Dual Governance
Multiswap's innovative new dual governance model leverages the general staking rewards model to ensure rewards flow fairly and efficiently to participants who contribute to the protocol’s stability and growth.
📄️ Launchpad
Traditional token sales suffer from major inefficiencies. Presales at discounted rates create immediate sell pressure as early investors look to exit at a profit. Vesting doesn't help because locking up a liquid asset only distorts market prices and creates pent up sell pressure. Meanwhile, large team allocations concentrate supply and reduce liquidity in circulation. On top of that, artificially hyped public sales often result in unsustainable price spikes, followed by crashes when speculative interest fades.