CoinClear

AirSwap

5.2/10

OG peer-to-peer RFQ trading protocol — MEV-free and zero-slippage by design, but tiny market share in the shadow of AMM-dominated DEXs.

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

Overview

AirSwap launched in 2017 as one of the earliest decentralized exchange protocols on Ethereum. Rather than using an automated market maker (AMM) model like Uniswap or SushiSwap, AirSwap employs a request-for-quote (RFQ) model where traders request prices from market makers who respond with firm quotes. If the trader accepts, the swap executes atomically on-chain. No liquidity pools, no slippage, no impermanent loss for LPs, and no MEV extraction.

The protocol was co-founded by Michael Oved and Don Mosites, both formerly of Virtu Financial, bringing traditional market-making expertise to decentralized trading. The RFQ model mirrors how institutional OTC markets operate in traditional finance — a trader requests a price, a market maker quotes, and the trade executes bilaterally.

Despite the elegance of the RFQ model and its genuine advantages (zero slippage, MEV resistance, no impermanent loss), AirSwap has captured only a tiny fraction of DEX volume. The AMM model, pioneered by Uniswap, proved far more popular because it doesn't require active market makers — anyone can passively provide liquidity. AirSwap's model requires professional market makers to actively quote, which limits the long tail of token pairs supported.

AirSwap has persisted through multiple market cycles and continues to iterate on the protocol (now at V4), but it remains a niche player serving primarily institutional and OTC trading use cases.

Technology

RFQ Protocol

AirSwap's core is the Swap protocol — a smart contract that executes atomic peer-to-peer swaps. A maker (market maker) signs an order off-chain specifying the tokens and amounts they're willing to trade, and a taker (trader) can take this order by submitting it to the Swap contract. The contract verifies signatures, checks allowances, and executes the token transfers atomically. If any part fails, the entire transaction reverts.

The RFQ flow: (1) Taker broadcasts a request for a specific token pair and amount, (2) Makers respond with signed quotes, (3) Taker selects the best quote and submits it on-chain. This can happen through AirSwap's discovery protocol or through direct integrations.

Server Protocol

AirSwap's Server protocol enables off-chain price discovery. Market makers run "servers" that respond to RFQ requests via a standardized API. Makers can set their own pricing logic, spreads, and supported pairs. The discovery protocol allows takers to find available makers for specific pairs.

Last Look Protection

Makers can implement "last look" — a brief window to reject a quote before execution. This protects makers from adverse price movements between quoting and on-chain settlement. While controversial in traditional markets, it's a practical necessity for on-chain RFQ where block confirmation times create latency.

V4 Improvements

AirSwap V4 introduced the Registry contract, improved fee structures, and a staking system for market makers. Makers stake AST tokens to register in the protocol, creating skin-in-the-game and enabling quality scoring.

Security

Smart Contract Security

AirSwap's Swap contract is remarkably simple by DeFi standards — it verifies signatures and executes atomic transfers. The simplicity is a security feature; there are fewer attack vectors than in complex AMM, lending, or cross-chain protocols. The contracts have been audited multiple times across versions.

No Pool Risk

Since AirSwap doesn't use liquidity pools, there is no TVL to hack in the traditional sense. AMM exploits (flash loan attacks, oracle manipulation, pool drainage) are structurally impossible in AirSwap's design. This is a genuine and underappreciated security advantage.

MEV Resistance

RFQ trades are inherently MEV-resistant. Makers quote firm prices; there's no slippage to sandwich. Front-running is mitigated because the signed order specifies exact amounts. This protects traders from the MEV extraction that plagues AMM-based DEXs.

Historical Track Record

AirSwap has operated since 2017 without a major exploit. For a DeFi protocol, an 8+ year track record without a significant security incident is notable. The simple contract design and lack of pooled assets contribute to this record.

Decentralization

Maker Network

AirSwap's decentralization depends on the diversity of its market maker network. Anyone can run a maker server, but in practice, the active maker set is small — mostly professional and semi-professional market makers. The barrier to participation is technical (running a pricing server) rather than economic (no massive capital requirement).

Protocol Governance

AST token holders participate in governance through voting on protocol parameters and upgrades. The core team (AirSwap DAO) manages development. Governance participation is low due to the small community size.

Open Standards

AirSwap's protocols (Swap, Server, Registry) are open standards that anyone can implement. The protocol doesn't depend on centralized infrastructure — makers can run their own servers and interact directly with the smart contracts.

Adoption

Volume Reality

AirSwap's trading volume is a fraction of a percent of total DEX volume. In a market dominated by Uniswap, Curve, and aggregators like 1inch, AirSwap barely registers. Monthly volumes are typically in the tens of millions — negligible compared to Uniswap's billions.

Institutional Niche

AirSwap's RFQ model is best suited for large, institutional-size trades where zero slippage and MEV protection matter most. The protocol has found some traction as a backend for aggregators (1inch, Paraswap route through AirSwap when its makers offer the best price) and for OTC-style trades.

Integration with Aggregators

AirSwap's integration as a liquidity source for DEX aggregators provides some volume, but this is opportunistic — aggregators only route to AirSwap when its makers happen to offer the best price for a specific trade.

Why Low Adoption

The fundamental challenge is that AMMs provide permissionless liquidity for any token pair without needing active market makers. AirSwap requires someone to actively quote. For the long tail of tokens, there are no makers. For major pairs, AMMs and CEXs provide sufficient liquidity. AirSwap occupies a narrow middle ground.

Tokenomics

AST Token

AST has a total supply of 500 million tokens. The token is used for maker staking (required to register in the protocol), governance, and protocol fee distribution. The staking requirement creates some demand sink, but with few active makers, the amount staked is small.

Fee Model

AirSwap charges a small protocol fee on trades, distributed to AST stakers. At current volumes, fee revenue is minimal — insufficient to meaningfully support the token valuation through fundamental value accrual.

Token Distribution

AST was distributed through a 2017 token sale and subsequent emissions. The token has experienced significant price decline from its peak, reflecting the protocol's limited adoption growth.

Risk Factors

  • Adoption failure: 8+ years of operation with minimal DEX market share is a significant negative signal.
  • AMM dominance: The market has decisively favored AMM models over RFQ for retail DEX trading.
  • Limited maker network: Small number of active market makers limits pair coverage and price competition.
  • Token demand: Minimal fee revenue and low maker staking demand create weak token economics.
  • Relevance risk: The protocol may be too niche to sustain long-term development and community interest.
  • Aggregator dependency: Meaningful volume comes through aggregators, not direct usage.

Conclusion

AirSwap is a well-designed protocol that solves real problems — MEV resistance, zero slippage, no impermanent loss — but the market has spoken: AMMs won the DEX wars for retail trading. AirSwap's RFQ model is technically superior for large trades but structurally disadvantaged for the long tail of tokens and retail-sized swaps that drive DEX volume.

The protocol deserves respect for its longevity, clean security record, and technical elegance. The simple contract design and lack of pooled assets make it one of the safer DEX protocols to interact with. However, safety and elegance haven't translated to adoption, and AirSwap remains a niche protocol serving a small corner of the DEX market.

The 5.2 score reflects strong security properties and clean design, heavily discounted by the reality of near-zero market share and weak token economics after 8 years of operation.

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