A trading mechanism that allows users to swap up to 300 different tokens in a single transaction has been released by a developer team working on the Avalanche blockchain. Developers revealed during a panel in Seoul last week that Multiswap, developed by the CavalRe team, had recorded the maximum number of token swaps in a testing period at 340 distinct tokens.
Liquidity pools for decentralised exchanges (DEX) typically allow traders to switch one token type for another. The algorithm behind Multiswap generates a liquidity pool of many different tokens that can easily trade with one another, allowing for numerous trades to take place in a single transaction.
A collection of cryptocurrencies secured by a smart contract makes up a liquidity pool. As a result, liquidity is produced, allowing for quicker transactions. Liquidity providers (LPs) are users who provide tokens to the pools.
The new tool enables users to set even more intricate trading plans, such as those that involve numerous tokens and demand speedy, low-cost transactions.
CavalRe founder Eric Forgy said “Think of it like a new kind of decentralised ETF.” According to the statement, “On testnet, we have a pool with over 500 tokens representing a mockup of the S&P 500 for demo purposes, which represents over 125K trading pairs with zero fragmentation of liquidity.”
“Any token in the pool may be traded against the full liquidity for that token. To recreate this on Uniswap, you would require 125K distinct pools, which simply shatters any available liquidity, according to Forgy. Users must be cautious since there are still security dangers associated with advanced blockchain-based applications, according to Forgy.
“No software, whether it runs on a blockchain or not, can ever claim to be secure. For instance, a recent exploit included contracts that were created in an earlier version of Vyper, a Python derivative, as a result of a compiler flaw.
We have originally deployed Solidity and are confident in the security of the Ethereum Virtual Machine (EVM) employed by Avalanche’s C-chain, the developer stated. For creating smart contracts on the Ethereum blockchain, programmers utilise Solidity.
Multiswap will investigate expansion options in the form of tokenized foreign currencies, commodities, and stocks in the upcoming months.