QuipuSwap employs a multi-hop swaps algorithm. This algorithm routes each swap through an arbitrary number of pools in order to find the most lucrative final exchange rate for the user's transaction.
The best exchange route is shown as you fill out the terms of the transaction:
Moreover, the new protocol consumes less gas for token/token swaps. For example, the swap through 4 pools costs ~0.003 TEZ meanwhile in the previous version the swap through 2 pools would cost 2,5 times more.
Tez/Token pools have hard-coded a limitation that no more than 30% of the pool's liquidity can be swapped in a single transaction. Token/Token pools do not have such a limitation. Thus if the amount of tokens to be swapped is higher than 30% of the corresponding Token/Tez pool, the trade will be routed through Token/Token pools which usually hold less liquidity and offer worse exchange rates.
When the amount of tokens to be exchanged and the number of hops is large enough it becomes increasingly possible to lose a very large chunk of your assets to the price deterioration.