CoinClear

AshSwap

4.2/10

MultiversX's primary DEX — solid stable swap design constrained by a small ecosystem.

Updated: February 16, 2026AI Model: claude-4-opusVersion 1

Overview

AshSwap is the primary decentralized exchange on MultiversX (formerly Elrond), launched in 2022 with a focus on stable swap pools inspired by Curve Finance's architecture. The protocol later expanded to include volatile asset pools and concentrated liquidity features. AshSwap serves as essential infrastructure for the MultiversX DeFi ecosystem, providing the deepest on-chain liquidity for EGLD, stablecoins, and liquid staking tokens.

The MultiversX ecosystem is small relative to Ethereum, Solana, or BNB Chain, which fundamentally constrains AshSwap's potential. The protocol is technically competent — the stable swap implementation is well-designed, and the team has shipped consistently. However, the total addressable market on MultiversX limits AshSwap to a niche role. The project's success is tightly coupled to MultiversX's ability to grow its overall ecosystem.

Smart Contracts

Architecture

AshSwap's smart contracts are built on MultiversX's WASM-based virtual machine, written in Rust. The protocol implements multiple pool types: stable pools (Curve-style invariant for pegged assets), standard AMM pools, and concentrated liquidity pools. The stable swap implementation uses the StableSwap invariant for efficient trading between similarly-priced assets with minimal slippage.

Code Quality

Contracts are open-source and written in Rust, leveraging MultiversX's Rust framework. The code quality is regarded as solid within the MultiversX ecosystem. The stable swap math is well-implemented, closely following Curve's proven approach. The concentrated liquidity module adds flexibility for LPs seeking higher capital efficiency.

Upgradeability

Smart contracts on MultiversX are upgradeable by the deployer. AshSwap's team controls upgrade authority, standard for MultiversX DeFi protocols. Progressive decentralization of upgrade authority is planned but not yet implemented.

Security

Audit History

AshSwap has been audited by security firms, with audits covering the stable swap and AMM pool contracts. The MultiversX-specific WASM environment has fewer specialized auditors than EVM, which means the depth of security review is somewhat limited. No major exploits have occurred on AshSwap.

Track Record

Clean security record with no loss of funds. The protocol has operated through multiple market conditions without incident. The MultiversX ecosystem has had some DeFi exploits on other protocols, but AshSwap has remained unaffected.

Concerns

  • MultiversX WASM smart contracts have a smaller auditor ecosystem than EVM
  • Upgradeable contracts with team-controlled authority
  • Limited bug bounty program compared to larger DeFi protocols

Liquidity

Depth & Stability

AshSwap holds a significant share of MultiversX's on-chain liquidity but in absolute terms, TVL is modest — typically $10-50M range. The deepest pools are EGLD/stablecoin pairs and stablecoin-stablecoin pools. Stable swap pools provide efficient trading for pegged assets. Liquidity is concentrated among a small number of whales, typical for smaller ecosystems.

LP Economics

LPs earn trading fees from swaps. Fee tiers vary by pool type. ASH token incentives are distributed to liquidity providers in key pools. The ve-token model (veASH) directs emissions to pools voted on by stakers, similar to Curve's gauge system. LP returns depend heavily on trading volume, which is limited by MultiversX's small DeFi user base.

Capital Efficiency

Stable swap pools provide high capital efficiency for pegged asset trades. Concentrated liquidity pools allow customizable ranges. However, overall utilization is low due to limited trading volume on MultiversX. The best pools achieve reasonable efficiency; long-tail pools suffer from minimal activity.

Adoption

Volume & Users

Daily trading volume is typically in the single-digit millions of dollars — small by DeFi standards but dominant within MultiversX. Active users number in the hundreds to low thousands daily. The protocol captures the vast majority of MultiversX DEX volume, but the total market is small.

Market Position

AshSwap is the dominant DEX on MultiversX, analogous to Uniswap on Ethereum or Jupiter on Solana. However, the MultiversX DeFi ecosystem is a fraction of the size of those chains, making AshSwap's dominance less meaningful in absolute terms.

Tokenomics

Token Overview

ASH is the governance and utility token with a capped supply. The veASH model allows token holders to lock ASH for voting power over emission distribution (similar to veCRV). ASH stakers earn protocol fees and influence which pools receive incentives. The tokenomics design is sound, borrowed from Curve's proven model.

Concerns

  • Low trading volume limits fee revenue for veASH stakers
  • ASH liquidity on secondary markets is thin
  • Token value heavily dependent on MultiversX ecosystem growth
  • Emission incentives may exceed fee revenue, creating unsustainable dynamics

Risk Factors

  • MultiversX dependency: AshSwap's ceiling is set by MultiversX's ecosystem size, which has stagnated
  • Low liquidity: Absolute TVL and volume are small, creating slippage risk for larger trades
  • Small user base: Hundreds, not thousands, of daily active users limits growth
  • Ecosystem concentration risk: If MultiversX declines further, AshSwap has no multichain escape path
  • Token illiquidity: ASH trades with thin volume, making positions difficult to exit
  • Auditor limitations: Fewer specialized auditors for MultiversX WASM contracts than EVM

Conclusion

AshSwap is a well-designed DEX that would be more impressive on a larger chain. The stable swap implementation is solid, the ve-token model is thoughtfully adapted from Curve, and the team has shipped consistently. Within MultiversX, AshSwap is indispensable — the protocol provides the liquidity backbone for the entire ecosystem.

The fundamental constraint is MultiversX itself. The chain has struggled to grow its DeFi ecosystem, and AshSwap's adoption ceiling is set by the number of users and capital on MultiversX. For AshSwap to become a significant DEX by broader DeFi standards, MultiversX would need a substantial ecosystem expansion. Until then, AshSwap remains a competent protocol on a small chain.

Sources