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Cow Protocol Team
What is CowSwap?
CoW Protocol is a fully permissionless trading protocol that leverages Batch Auctions as its price finding mechanism. CoW protocol enables batch auctions to maximize liquidity via Coincidence of Wants (CoWs) in addition to tapping all available on-chain liquidity whenever needed. Batch Auctions are continuously run by the protocol because the solvers, the parties in charge of finding the most optimal settlement for the batch, are in competition to settle it. The winning solver will be the one that can maximize traders surplus by either having the most optimal CoW, finding the best liquidity sources, or combining both in a single settlement.

CoW Swap is the first trading interface built on top of CoW Protocol. It acts as Meta DEX aggregator, giving the users the best price across the aggregators or AMMs depending on which one is the most liquid venue for the trades within a batch.

CoW Protocol has a wide range of benefits, both technical and functional, but to sum it up, here are the main benefits it brings to the ecosystem:
Fully permissionless Meta DEX Aggregator on which anyone can trade any tokens and build integrations
First implementation (2nd iteration) of batch auctions promoting fair uniform clearing prices
Trades are protected from different sorts of MEV such as front/back running or sandwhich attacks
Maximized liquidity and access to all on chain liquidity
Best prices when COWs are found, or at least as good as the best DEX aggregator price if they aren't
All token pairs available for trading, Offchain order submission enables gasless trading
Fair, decentralized settlement in which an open competition for order matching replaces a central operator or a constant function market maker.
Tokenomics ensure that solvers are competing against each other to deliver the best order settlement solution for traders in exchange for the reward of each batch auction.

Trading Cycle
While we call CoW Swap a META DEX Aggregator, as it may have similarities with current DEX aggregators or DEX trading protocol, CoW Protocol introduces a completely new way of trading. In comparison with other DEXs or DEX aggregator, CoW Protocol, and therefore the interfaces built on top of it ( for example), don't require the user to send a transaction to submit a trade, but rather require the user to send a signed message. The reason for this is that the protocol works with off-chain messages, where the trader signs an order with the valid parameters they are willing to accept. This signed order is later on picked up by the solvers and executed in the batch auction that satisfies the users signed requirements.

We believe CoW Protocol is critical infrastructure for open finance, which will see the creation of more and more tokenized assets, and will ultimately need a reliable trading mechanism that has the users best interest in mind.
Ultimately, CoW Protocol is built in the spirit of permissionless innovation. Its fully decentralized architecture means you don't need CoW Swap to build on our protocol.
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Cow Protocol Team
CowSwap is the crypto exchange that gives you peace of mind. On CowSwap, you don’t have to worry about finding the best price, optimizing your gas costs, or getting exploited by bots. We take care of everything for you.Avoid all the complexities of crypto networks. If the best price is on Uniswap, you get that same price on CowSwap. If there’s a better price elsewhere, CowSwap gives you that price. CowSwap’s gas fees are also lower on average. In addition, CowSwap protects you from getting rekt in ways that other exchanges don’t. On CowSwap, you will never pay for a failed trade. Your trade will never be sandwiched or frontrun. And you don’t have to make sure you hold enough ETH to execute your trade.
CoW Swap is built on top of the CoW Protocol which matches trades via batch auctions for a variety of on-chain liquidity sources.Trades can be settled via underlying on-chain AMMs directly or via DEX Aggregators, depending on which pool/path offers the best price. It is thus essentially acting as a DexAggregator of the DexAggregators.In addition to that, before finding the best price for a trade from available on-chain liquidity, CoW Protocol first seeks a coincidence of wants within the existing batch to offer an even better price than any pool can.
Defined by Phil Daian et al. in the paper Flash Boys 2.0 , MEV is a measure of the profit a miner (or validator, sequencer, etc.) can make through their ability to arbitrarily include, exclude, or re-order transactions within the blocks they produce.As of today the total amount of value extracted by miners (etc.) on Ethereum transactions has reached USD 606 Million, including successful and failed transactions.
CoW Swap settles batch auctions in discrete time intervals. In the absence of other traders, CoW Swap matches traders against the best available on-chain liquidity (note: currently the solvers have integrated liquidity from Uni v2, Uni v3, Balancer, Balancer v2, Sushiswap and the liquidity that Aggregators such as Paraswap, Matcha and 1inch leverage).If CoWs (Coincidence of Wants) orders exist in a batch, the “smaller” order is matched fully with the larger order. The excess of the larger order is settled with the best available base liquidity CoW Swap integrates with, which is, for now, Uniswap. The clearing price for both orders will be the price of the token with the excess amount on external liquidity sources to which the protocol is connected.
As of August 11th, 2021, CoW Swap is no longer in alpha and moves to a final, stable version. The underlying CoW Protocol Smart contracts have been upgraded to integrate tightly with Balancer v2.With this upgrade, CoW Swap evolves into its most stable, performant form: the code has been thoroughly and carefully tested, peer-reviewed and fully audited. Whilst CoW Swap has taken a major step forward in terms of security and stability, as with other crypto protocols or dapps, your use is at your own risk.
Each executed order has a fee which is captured by the protocol. Part of the fee is paid to solvers (entities which provide order settlement solutions) to incentivize their participation.
CoW Swap can connect to all on-chain liquidity.When CoW Swap does not have enough CoWs (Coincidence of Wants) among the orders available for a batch, it taps other AMMs’ liquidity to be able to settle the traders’ orders. CoW Protocol can be connected to any on-chain liquidity sources and can therefore enjoy the benefits of concentrating the fragmented liquidity across decentralized finance.
CoW Swap does not have liquidity providers. Instead, it connects to all on-chain liquidity that is provided across different protocols. Since orders only incur a cost if traded, active market makers can observe the orderbook and place counter orders (creating a CoW) to prevent settling trades via external liquidity.
Yes, vCOW is the non-transferable governance token that powers the CoW Protocol.At launch the token will be a pure virtual token for governance. This implies that the token will not be transferable. The token entitles its holders with voting rights in the CoW DAO. It is up to CoW DAO to vote on whether making the token transferable complies with applicable laws.The token's main purpose is to govern and curate essential infrastructure components of the CoW Protocol ecosystem.Be cautious, some people may create fake COW tokens, that are not affiliated with this project.
The COW token will entitle its holders to voting rights within the CoW DAO. The main purpose of CoW DAO is to govern and curate essential infrastructure components of the CoW Protocol ecosystem
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