CoW DAO Launches MEV-Capturing AMM to Protect Liquidity Providers
CoW DAO Launches MEV-Capturing AMM to Protect Liquidity Providers
CoW DAO has launched the CoW AMM, the first MEV-capturing automated market maker designed to protect liquidity providers from loss-versus-rebalancing (LVR). LVR costs liquidity providers over $500 million annually and is responsible for more price exploitation than all other forms of MEV combined. The CoW AMM uses a batch auction model to rebalance liquidity pools based on surplus, capturing arbitrage value for LPs and shielding it from MEV bots. Research suggests that the returns for CoW AMM LPs will be equal to or better than those for traditional AMMs. Launching the CoW AMM is an extension of CoW DAO's mission to protect Ethereum users from MEV.
💥 Don't forget to set your reminder for the upcoming Blockchain Banter with @VinyasAlex of @CoWSwap and @MBRichardson87 of @CarbonDeFixyz x.com/i/spaces/1gqxv…
sharing my thoughts on the CoW AMM - a novel mev-capturing AMM 💭 @CoWSwap just announced just announced their new AMM x.com/cowswap/status… CoWSwap continues to be one of the most underrated projects in crypto in my opinion, accruing nearly $35B in trading volume from over
🌊 🌊 🌊 The dirty secret of AMMs is that many of their pools are leaking. In fact, liquidity providers lose 5-7% of their profits to MEV every year, making *most liquidity pools* unprofitable. That's why CoW DAO is building the first MEV-capturing AMM. We call it CoW AMM.
🌟 🌟 @CoWSwap just announced the first ever MEV-capturing AMM! Finally, there could be 1 AMM protecting LPs’ interest against MEV. 1 year ago I wrote a 🧵 of when it makes economic sense to be LPs for AMMs, and introduced LVR - the largest loss of LPs on AMMs that costs LPs
ICYMI: CoW DAO unveils AMM exchange aimed at protecting liquidity providers from MEV buff.ly/49f8GKp
CoW Protocol Proposes New Auction Mechanism
CoW Protocol has initiated voting on CIP-67, a significant proposal to transform their trading mechanism. The proposal aims to replace the current batch auction system with a fair combinatorial auction model. This follows the recent CIP-65 which addressed solver reward allocations for buy orders. - **Key Change**: Transition from batch to combinatorial auctions - **Action Required**: $COW token holders can vote on the proposal - **Voting Link**: [Vote on Snapshot](https://snapshot.box/#/s:cow.eth/proposal/0xf9ecb08c4738f04c4525373d6b78085d16635f86adacd1b8ea77b2c176c99d32)
CoW Protocol Hits New Volume Record in April
CoW Protocol has achieved a significant milestone in April 2025, processing a record-breaking monthly volume of $6.2 billion in trades. This performance represents approximately double the combined volume of all other intent-based trading platforms. Key highlights: - Monthly volume: $6.2 billion - Market position: Leading intent-based trading platform - Performance: Doubled combined volume of competitors For more information about building on CoW Protocol, visit [cow.fi](https://cow.fi/cow-protocol)
Understanding Cross-Chain MEV: Risks and Solutions
MEV (Maximal Extractable Value) has evolved beyond single-chain operations into cross-chain territory, presenting new challenges for traders. Key points: - 5 entities currently control 80% of Ethereum block building - Cross-chain MEV coordination is increasing, potentially affecting trade prices - Users can protect themselves through MEV-resistant RPCs and private transaction pools Emerging solutions: - SUAVE project aims to make MEV more equitable through user compensation - New protocols focus on MEV-resistance and cross-chain protection - Proper slippage settings and MEV protection tools are crucial for critical trades [Learn more about cross-chain MEV](https://cow.fi/learn/understanding-cross-chain-mev)
Study Shows CoW Swap Leads Intent-Based DEXes in Decentralization and Volume
A comprehensive 6-month trading analysis reveals CoW Swap's dominance among solver-based DEXes: - **Higher Trading Volume**: ~$200M daily vs $60M (1inch Fusion) and $30M (UniswapX) - **More Decentralized**: Top solver only controls 25% market share, with next five at ~10% each - **Better for Large Trades**: Shows best execution improvement for trades over 100 ETH The study compared CoW Swap, 1inch Fusion, and UniswapX, finding solver-based DEXes generally outperform traditional alternatives through optimized routing and off-chain liquidity access. Try CoW Swap: [swap.cow.fi](https://swap.cow.fi/#/1/swap/WETH/0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48)
CoW DAO at DevCon Bangkok: Schedule of Events
CoW DAO announces their presence at DevCon Bangkok with a packed schedule: - Tuesday: @Silver_Queen presents on user interaction in web3 - Wednesday: Booth presence at ArbiVerse (Arbitrum event) with swag giveaways - Thursday: @AnnaMSGeorge discusses CoW AMM's batch mechanism - Friday: Two key talks: * @AndreaCanidio on trade intents and fair mechanism design * @fleupold_ explores PBS in Ethereum **Special Event**: CoW DAO hackathon offering $10,000 in prizes at ETHGlobal Visit the CoW DAO booth to connect with the team and collect exclusive swag!