New Avalanche Dapp Lets Traders Swap Hundreds of Different Tokens in Single Transaction

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New Avalanche Dapp Lets Traders Swap Hundreds of Different Tokens in Single Transaction
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Multiswap’s code creates a liquidity pool of several different tokens that can be easily traded with each other – making these trades in a single transaction possible.

A developer team building on the Avalanche blockchain has introduced a trading tool that lets users swap up to 300 different tokens in the same transaction.

liquidity pools usually let traders swap one token type for another. Multiswap’s code creates a liquidity pool containing many different tokens that can be easily traded with each other, enabling multiple trades to occur in a single transaction.. This results in creating liquidity for faster transactions. Users supplying tokens to the pools are referred to as liquidity providers .

“Think of it like a new kind of decentralized ETF,” said CavalRe founder Eric Forgy in a message to CoinDesk. “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.” Nevertheless, security risks due to the inherent nature of sophisticated blockchain-based applications remain and users must be wary, Forgy said.

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