Credit-Based Swap

Credit-based Swap is a unique design from Native Swap Engine that provides the opportunity for private market makers (PMMs) to execute swaps using the Native Credit Pool as their inventory. In this process, PMMs are required to lock on-chain collateral to gain credits.

This approach enables higher capital efficiency for PMMs while offering liquidity providers a much simpler way to perform liquidity provisioning.

Check out this example for how the credit-based swap works:

Native Swap Engine

Learn more about PMM collateral and credits:

Collateral FactorPMM Credit