According to CoinDesk, a developer team at CavalRe has introduced Multiswap, a trading tool built on the Avalanche blockchain that allows users to swap up to 300 different tokens in a single transaction. During a testing period, Multiswap recorded the highest number of token swaps at 340 different tokens. Unlike traditional decentralized exchange (DEX) liquidity pools, which allow traders to swap one token type for another, Multiswap's code creates a liquidity pool containing multiple tokens that can be easily traded with each other, enabling multiple trades to occur in a single transaction.
CavalRe founder Eric Forgy described Multiswap as a 'new kind of decentralized ETF,' allowing users to set up more complex trading strategies involving various tokens at low fees. However, Forgy also warned of security risks inherent in sophisticated blockchain-based applications. Despite these risks, the team feels confident about the security of the Ethereum Virtual Machine (EVM) used by Avalanche's C-chain, where Multiswap has been initially deployed. In the coming months, Multiswap plans to explore expansion possibilities, including tokenized foreign currencies, commodities, and equities.
