Generalized Swap

Definition ∞ Generalized Swap represents a versatile form of exchange that permits the atomic trading of a broad array of digital assets or financial instruments without requiring a direct pair on a single platform. This mechanism extends beyond simple token-for-token exchanges. It enables more complex, conditional, and multi-asset transactions. This enhances trading flexibility.
Context ∞ Generalized swaps are significant in decentralized finance (DeFi) for enhancing capital efficiency and enabling sophisticated trading strategies across various liquidity pools and protocols. Their continued development aims to improve interoperability and reduce friction in digital asset markets. News often highlights innovations in swap protocols that expand trading possibilities.