CavalRe is a DeFi project developing Multiswap, a new generation on-chain trading and liquidity provision protocol that replaces traditional AMM models.
This platform not only focuses on trading efficiency but also builds a comprehensive decentralized financial infrastructure, targeting the global Onchain financial market with diverse products such as derivatives, index funds, and the Prediction Market.
MAIN CONTENT
CavalRe develops Multiswap, replacing the traditional Constant-product model with discrete mathematics.
Supports multi-asset trading in a single Pool with Dynamic Weights mechanism and Dual Governance.
Aiming to become a comprehensive Onchain financial infrastructure with index funds, derivatives, and prediction markets.
What is CavalRe?
CavalRe is a DeFi project developing Multiswap – a new generation on-chain trading protocol that completely replaces old AMM models like Uniswap or Curve.
The project focuses on optimizing capital, reducing value loss for liquidity providers (LPs), and creating a comprehensive decentralized financial infrastructure, from spot trading to complex financial products.
“CavalRe represents a new generation of AMMs, bringing modern financial principles into DeFi rather than relying on simple formulas.”
DeFi Infrastructure Report 2024, Messari
What is CavalRe's difference?
Unlike Constant-product AMMs, CavalRe applies discrete mathematics and modern capital models to create flexibility and protect LPs from Impermanent Loss.
The difference is also reflected in the ability to trade multiple assets in a single Pool, using Dynamic Weights to rebalance liquidity and a transparent Launchpad mechanism to eliminate sell pressure after the Presale.
What is unique about CavalRe's technology?
CavalRe applies discrete trading mechanisms and post-trade pricing to help limit losses for LPs and optimize capital allocation.
Thanks to Dynamic Weights, LPs can flexibly adjust asset allocation ratios while participating in governance and receiving rewards based on their contributions.
“CavalRe's Dynamic Weights allow the system to respond flexibly to market fluctuations without harming LPs.”
Nguyen Van Hung, Blockchain expert, Vietnam Blockchain Summit 2024
What benefits does the Dual Governance mechanism provide?
Dual Governance allows LPs to adjust asset weights, while CAV Holders control reward distribution and Emissions.
This model helps balance interests, limit power concentration, and promote long-term sustainability for the ecosystem.
How does CavalRe operate?
CavalRe operates through a single Multiswap Pool, where all assets are provided and traded without needing to fragment liquidity.
This mechanism combines discrete trading, Dynamic Weights, and a Multitoken system to ensure transparency, efficiency, and scalability for global DeFi.
How does the Multiswap Pool operate?
Users deposit assets into a single Pool, and the system automatically activates all trading pairs without needing to separate liquidity.
This eliminates fragmentation, reduces transaction costs, and enhances capital efficiency.
What roles do Dynamic Weights and Target Weight play?
Dynamic Weights allow asset weights to change with each transaction to optimize capital and protect LPs.
LPs can Stake LP tokens to adjust Target Weight, directly impacting asset allocation in the Pool and receiving rewards in that same asset.
How do CAV Staking and the Launchpad operate?
CAV Holders can Stake to control reward distribution, with Rewards distributed along with Vesting to limit short-term Unstaking.
The Multiswap Launchpad applies the Surplus model to issue new tokens, ensuring no price volatility in the Pool and fairer distribution.
“The Surplus-based launchpad eliminates strong sell-offs after the Presale, creating sustainable trust for the community.”
Pham Thuy Dung, Head of Research, Coin98 Insights (2024)
What products does CavalRe target?
CavalRe not only stops at spot trading but also aims at derivatives, index funds, and the Prediction Market.
Thanks to Multiswap and the Modular structure, the system can scale to become a comprehensive Onchain financial infrastructure platform.
Traditional AMM features (Uniswap, Curve) CavalRe Multiswap Pricing formula Constant-product Discrete mathematics, Post-trade Price Liquidity management Fragmented across multiple Pools Concentrated in a single Pool Governance Token Holder decides Dual Governance: LP + CAV Holder Expanded products Limited (mainly spot) Spot, derivatives, index funds, Prediction Market
CavalRe's official information channel
Website: https://caval.re/
X (Twitter): https://x.com/TheCavalRe
Frequently Asked Questions
What differentiates CavalRe from Uniswap?
CavalRe uses discrete mathematics instead of Constant-product, reducing Impermanent Loss and allowing multi-asset trading within a single Pool.
How does CavalRe's Dual Governance operate?
LPs adjust asset weights, while CAV Holders control rewards and Emissions, creating a balance of power.
How does the Multiswap Launchpad differ from a regular Presale?
The Surplus-based launchpad does not cause price volatility in the Pool, ensuring more transparency and fairness than traditional Presales.
How can LPs profit?
LPs receive trading fees and rewards from the Pool, while also holding LP tokens like shares in a decentralized index fund.
What development directions does CavalRe have for the future?
The project will expand into derivatives, index funds, and the Prediction Market, becoming a comprehensive Onchain financial infrastructure.
Source: https://tintucbitcoin.com/cavalre-la-gi-du-an-defi-phat-trien-multiswap/
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