What is Multiswap?
Multiswap brings together a new kind of decentralized exchange and a new kind of decentralized ETF, combining portfolio exposure with income from trading activity.
The connection is the pool: a portfolio of assets that also supplies the capital for a trading market. Traders exchange assets through the pool. Liquidity providers hold its LP Token, which represents a claim on the portfolio’s backing.
A decentralized exchange
Each asset in a pool has a shared reserve that serves every trading pair containing it. Traders can buy or sell registered assets directly through those reserves.
In a pool containing USDC and several tokenized stocks, the USDC reserve serves every stock/USDC market. Each stock reserve also serves trades against the other registered stocks. The same capital supports the entire network of markets.
Capital efficiency grows with that asset universe. A pool with 10 Reserve Assets supports 45 pairs; a pool with 20 supports 190. Trade size, reserve composition, elasticity, and fees determine the quote available in each market.
Capital Efficiency explains how shared capital serves a growing set of markets.
A decentralized ETF
The ETF side is the portfolio represented by the pool’s LP Token. Holding that token gives exposure to the pool’s backing. A stablecoin pool holds dollar-linked assets; an equity pool holds registered stock tokens under their issuer terms.
Liquidity providers add proportional liquidity to receive LP Tokens and redeem them through the pool’s liquidity operations. Trading changes the portfolio’s composition, and its weights follow the resulting balances and accounting values.
The portfolio’s assets also earn trading fees as they serve the exchange. This brings market exposure and trading income into the same structure. Fees accrue to Rewards accounts; the pool’s payout rules determine how that income is distributed or reinvested for LPs. Portfolio performance also reflects changes in the underlying assets’ market values.
Portfolio Exposure and Trading Income explains ownership, earnings, and the current implementation.
Execution that supports the portfolio
Trades pay the pool the full value of the assets they receive, valued at post-trade prices. Trading fees generate income on top.
Suppose a trader pays asset A and receives asset B. At the prices after the trade, the A received by the pool pays for the B delivered to the trader. This connects trade execution to the economics of supplying the portfolio’s capital.
The app shows receive amounts after fees, opening and ending prices, price impact, and minimum receives. A pool-wide elasticity governs how its prices and portfolio weights respond to trading.
Read Trade Execution for the trading model and Post-Trade Execution for the accounting.
Portfolios that compose
A pool’s LP Token can become a Reserve Asset in another pool. Stablecoin, equity, and commodity portfolios can compose into broader portfolios, with each layer retaining its own reserves and trading market.
Composable Pools explains how these portfolio tokens fit together.
Start with USD.cav
USD.cav is the stablecoin portfolio available on Robinhood Testnet. Explore its composition, compare quotes at different trade sizes, and inspect the effect on prices and weights.