Multiswap in Five Minutes
Multiswap is a multi-asset liquidity protocol built around one financial constraint:
The value flowing into a trade must fund the value flowing out.
That is the self-financing condition used in portfolio theory. Multiswap applies it directly to onchain exchange.
If you remember only three things about Multiswap, remember these:
- No value leakage. Liquidity providers do not have to subsidize every trade and then hope to earn that value back through fees.
- Unlimited assets. One pool can hold any number of assets and create every market between them from the same shared liquidity.
- Extreme capital efficiency. Shared reserves, basket execution, and dynamic weights allow the same capital to support dramatically more markets and useful trading depth.
Multiswap conserves value, unifies liquidity, and makes capital work harder.
1. No value leakage
Most automated market makers leak value from liquidity providers as a consequence of how they price trades. Fees may offset that loss, but they do not eliminate the underlying expense.
Multiswap begins with the opposite requirement: every trade must be self-financing. The value flowing out must be fully funded by the value flowing in.
For every trade leg, the quote engine computes:
- reserve movement,
- value flow,
- scale change,
- fees and their destinations.
Across the complete trade, signed value flow balances:
sum(value flow) = 0
Fees change where value is accounted for; they do not relax the conservation constraint.
2. Unlimited assets
Most automated market makers divide liquidity among isolated pairs. A market with many assets therefore needs many pools and fragments capital across them.
Multiswap is not organized around pairs. One pool can hold many Reserve Assets and settle value across any supported combination of them. The same pool can support pair trades, multi-pay trades, multi-receive trades, and basket execution.
For N assets, one shared pool can expose up to:
N × (N - 1) / 2
direct pairwise markets, before counting basket routes.
“Unlimited assets” does not mean transactions are unconstrained by gas or implementation limits. It means the architecture itself is N-asset rather than pair-bound.
3. Extreme capital efficiency
Every Reserve Asset has a reserve, a scale, a target scale, a fee, and a stableness parameter.
local price = scale / reserve
The current weight of an asset is its share of total scale. Its target weight is its share of total target scale.
When a trade moves the pool toward its target portfolio, the quote follows a linear branch with zero price impact before fees. When a trade moves away from target, or passes through it, the dynamic branch introduces curvature to protect the pool.
This is the key idea: Multiswap changes both reserves and scale. Price impact is not forced to emerge from reserve depletion alone.
Because every asset shares the same pool, the same capital supports every pairwise market and every basket route. Dynamic weights then make that shared capital substantially more useful.
Multiswap measures this usefulness by the trades a pool can execute, not only by the assets deposited into it.
Effective Depth = maximum trade size at a stated price-impact threshold
This makes capital efficiency falsifiable. A pool can publish its effective depth at 10, 50, or 100 basis points, together with the pool state and quote parameters used to produce the result.
What Multiswap becomes
The AMM is the first implementation of a broader value-flow framework. Multi-asset portfolios, tokenized indices, prediction markets, fixed income, derivatives, and insurance risk can all be expressed as constrained movements of value between accounting claims.
That is the larger goal: bring capital markets and capital management together onchain.
Ready to try it? Browse all Multiswap pools, then follow Using the Multiswap App.