# Multiswap problem ( high fees and slippage )

**URL:** <https://forum.shadeprotocol.io/t/multiswap-problem-high-fees-and-slippage/367>\
**Category:** Shade's Products\
**Created:** [October 2, 2023, 9:37pm UTC](https://forum.shadeprotocol.io/t/multiswap-problem-high-fees-and-slippage/367 "2023-10-02T21:37:08Z")\
**Posts on this page:** 1\
**Page:** 1

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**Author:** ![Jiricepelka.scrt](https://yyz2.discourse-cdn.com/flex030/user_avatar/forum.shadeprotocol.io/jiricepelka.scrt/32/366_2.png) [@Jiricepelka.scrt](https://forum.shadeprotocol.io/u/Jiricepelka.scrt)\
**Post date:** [October 2, 2023, 9:37pm UTC](https://forum.shadeprotocol.io/t/multiswap-problem-high-fees-and-slippage/367/1 "2023-10-02T21:37:08Z")

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Hi, even though Shade Protocol has a better solution than most DEXs due to the own-stablecoin centric model which undoubtedly has a lot of potential even so Shade Swap is not perfect.

The current main problem is that if a regular user wants to switch from ATOM to SCRT, they probably won’t use Shade Swap because of multiswap:

1. Multiswap causes high fees because it uses multiple pools, in the case of ATOM → SCRT it is:  
ATOM → stATOM 0.05%  
stATOM → SILK 0.3%  
SILK → stkd-SCRT 0.3%  
stkd-SCRT → SCRT 0.05%  
Total fee = 0.7%

2. Slippage in all these pools ( in the case of LSD pools the slippage is significantly lower due to concentrated liquidity )

The combination of these two factors causes:

1. Less incentive for users to swap on Shade Swap

2. Less Arbitrage ( the price on the Shade Swap has to be at least 0.7% different for this pair to make it worthwhile for anyone to arbitrage against, for example, the price on CEX )

3. Less to no trading during low volatility periods ( people prefer to trade on CEXs/cheaper DEXs )

Personally I don’t see many ways to solve this problem, probably the only way is to reduce the fees and deliver the orderbook, anyway I am clueless about this myself.

This thread is primarily open for the sake of opening discussion, as have been and will be a few others, personally I hope that research and launch of new Shade products in the future will eliminate this problem and Shade will become as effective as its competitors in Cosmos and beyond.