CoW AMM Launches 80/20 Pools with Enhanced LVR Protection

🐮 New Pools Just Dropped

By CoW DAO
Nov 25, 2024, 4:15 PM
CoW DAOTwitter
News article
Photo by CoW DAO

CoW AMM has introduced 80/20 pools, expanding its Loss Versus Rebalancing (LVR) protection features.​ The new pools offer:

  • Asymmetric upside potential for token exposure
  • Reduced impermanent loss compared to traditional pools
  • Enhanced hedging capabilities

Recent data shows the effectiveness of CoW AMM's LVR protection, with pools achieving significantly better returns than traditional AMMs.​ For example, a recent $COW/$wstETH pool transaction delivered 15.​18% surplus to LPs - over 50x better than Uniswap V2's standard 0.​3% fee.​

Available now on mainnet, Gnosis Chain, and Arbitrum.​

Sources

Liquidity Pools just got a lot more interesting. 🌊 CoW AMM is launching 80/20 pools on @Balancer - bringing its class leading LVR protection with it. 💪 What does that mean? - No more LVR - More flexibility for LPs - More mooooos 🐮

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Balancer
Balancer
@Balancer

1/ 8020 pools are live on CoW AMM! Ideal for highly volatile, long-tail tokens, CoW AMM is a perfect match for Balancer's 8020 pools! Learn how @CoWSwap and Balancer are raising the steaks for governance token liquidity. 🧵👇

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During big price movements, LVR can cost LPs big – unless they use CoW AMM. 🐮 Exhibit A: After the 25% surge in the price of $DOG overnight, the APR on CoW AMM's DOG-wstETH pool shoot up to 19% without incentives. 📈 (Compared with 0.929% on 🦄.) How so? 🤔 Read on ... 📚

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LPs on CoW AMM are making money mooooves with @safe 💸 Almost all gains came from surplus. How? On CoW AMM, solvers rebalance pools by offering price improvements to LPs. When they find a surplus, instead of the LP losing liquidity, they gain it back, effectively protecting

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