Multiswap FAQ
General
What is Multiswap? Multiswap is an AMM that adheres to all three principles of a good AMM: balanced, rebalanced, and self-financing. In addition, it aims to provide a fair and efficient trading environment for traders and liquidity providers by ensuring a stable trading environment and maximizing the benefits for both parties.
How can I access Multiswap? Multiswap can be accessed through the web3 browser extension like MetaMask or WalletConnect-enabled wallets on desktop and mobile devices. In addition, users can visit the Multiswap website to connect their wallets and start trading and providing liquidity.
How does Multiswap differ from other popular AMMs like Uniswap and Curve? Unlike Uniswap and Curve, which fall short of fully adhering to the three principles of a good AMM, Multiswap follows all three principles. This allows liquidity providers to be profitable on liquidity provision and traders to access the whole liquidity for the token, unlike other AMMs.
How can liquidity providers benefit from using Multiswap? Liquidity providers on Multiswap can benefit from a balanced, rebalanced, and self-financing AMM that allows them to be profitable on liquidity provision. In addition, this ensures fair compensation for their contributions compared to other AMMs.
How does Multiswap provide a better trading environment for traders? Multiswap allows traders to have access to the whole liquidity of the token, which results in better price execution and lower slippage compared to other AMMs.
How flexible is Multiswap? Multiswap is highly flexible and designed with the idea that "Everything is a multiswap." This means the platform can accommodate various types of swaps, from single-token to multi-tokens in one transaction. As well as trades between regular tokens and LP tokens. Additionally, you can provide liquidity using single or multiple assets and even move liquidity between pools. This flexibility enables users to optimize their trading strategies and manage their assets efficiently within a user-friendly platform.
Is there any risk in using Multiswap? As with any decentralized exchange, there is a risk of smart contract vulnerabilities, impermanent loss, or transaction errors. Users should always exercise caution and do their own research before trading or providing liquidity on Multiswap. It is recommended that users only invest what they can afford to lose and use best practices like setting slippage limits and double-checking transaction details before executing trades.
Is Multiswap decentralized? Yes, Multiswap is a decentralized exchange (DEX), meaning it is non-custodial and operates on a blockchain network. This ensures that users have full control over their assets and that trades are executed in a trustless and transparent.
Liquidity Provision
How to provide liquidity on Multiswap? Providing liquidity on Multiswap is simple and flexible. You can choose to supply liquidity using a single token or multiple tokens. Then, trade your selected token(s) for the corresponding pool token(s) to become a liquidity provider and earn fees from trades within the pool.
Can I provide liquidity with one token on Multiswap? Yes, Multiswap allows you to provide liquidity using just a single token. You can trade your chosen token for the corresponding pool token(s) to contribute liquidity to the pool and earn fees from trades.
How do I withdraw liquidity from Multiswap? Users can withdraw their liquidity by simply swapping the LP token(s) they hold for another desired token (s). It’s that simple.
How can I move my liquidity from one pool to another on Multiswap? Moving liquidity on Multiswap is as easy as doing multiswap itself. Users can swap one LP token for another LP token, and now liquidity is moved to the new pool.
What is the fee structure on Multiswap? Multiswap charges fees based on token(s) that have been traded. This differs from what generally charges for other DEXs, which charge fees based on the pool.
Trade
Can I trade multiple tokens simultaneously on Multiswap? Yes, Multiswap allows you to trade multiple tokens simultaneously in a single transaction. This feature streamlines the trading process, making it more efficient and user-friendly.
Can I trade pool token(s) and regular token(s) in the same transaction? Yes, every token can be swapped in and out without hassle on Multiswap. This includes pool token(s) and regular token(s)
Can I trade regular token(s) to multiple pool tokens in a single transaction? Yes, users can trade regular token to pool tokens with a single transaction.
Miscellaneous
What is loss versus rebalancing? Loss versus rebalancing is a metric used to evaluate the performance of LP in an AMM. It compares the potential returns from holding assets in a pool against the returns from periodically rebalancing the assets outside the pool. This metric helps LPs determine if providing liquidity to a specific pool is profitable compared to other investment strategies.
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