A swap that is made up of a number of zero-coupon swaps with increasing maturities. Each of the zero-coupon swaps provides a coupon paid by the underlying debt instrument (inflation bonds, capital indexed bonds, etc.) before maturity, and a larger one provides the final coupon and return of the principal.

In other words, the swap provides periodic settlements to market participants (party to the swap agreement) who prefer regular payments in settlement of their dues. The swap also compensates for the cumulative effect of inflation over a longer period of time.

This swap has the features of both zero-coupon swaps and year-on-year swaps.

Revenue swaps are typically used as a hedge for inflation risk. Issuers of inflation-linked bonds hedge their risks using matching revenue swaps.