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 DAO Launches on New Chain and Reports Strong Revenue in January 2026
CoW DAO kicked off 2026 with significant developments in January: - **Chain expansion**: The protocol launched on a new blockchain network - **Revenue growth**: Posted strong protocol revenue numbers for the month - **Performance**: The DAO demonstrated momentum heading into the new year The organization has published a [detailed January recap](https://cow.fi/learn/cow-dao-monthly-recap-january-2026) covering all developments from the month. CoW Protocol specializes in finding optimal trade prices across multiple exchanges and aggregators while providing MEV protection for users.
DAO Secures 2026 Foundation with Renewed Grants Programs
The DAO has voted to renew its core funding programs for 2026, ensuring continued support for builders and contributors. **Key Approvals:** - **CIP-82**: Grants Program renewed - **CIP-83**: Team Grants renewed with enhanced accountability measures The renewed Team Grants now include **stricter, performance-linked milestones**, introducing more rigorous oversight for funded projects. These governance decisions establish the operational framework for the year ahead, with builders and contributors now confirmed for 2026.
CoW DAO Value Distribution RFP Proposals Under Review
CoW DAO's Request for Proposals (RFP) for designing a **Value Distribution Mechanism** has closed submissions and entered the review phase. **What's Being Decided:** - How protocol profits are captured - Management of treasury funds - Distribution mechanisms to token holders The RFP aims to establish a sustainable framework for CoW Protocol's economic model, defining the path forward for value accrual to the community. Proposals are currently being evaluated by the DAO. [Read the full RFP details](https://forum.cow.fi/t/rfp-cow-value-distribution-mechanism/3328)
CoW Protocol Expands: First Aggregator on Plasma Network with New Integrations
CoW Protocol has become the **first aggregator on Plasma Network**, enabling gasless stablecoin swaps on the platform. The protocol also launched three new integrations: - **HeyElsaAI**: Integration with AI agents - **Ondo Finance**: Support for institutional assets - **TokenPocket**: Mobile wallet integration These additions expand CoW Protocol's reach across different user segments, from AI-powered trading to institutional investors and mobile users. The Plasma Network integration builds on the stablecoin-native chain that launched in September 2025 with USDT at its core.
COW Token Achieves Net Negative Emissions in 2025
**Protocol Economics Highlights** COW token demonstrated strong performance in 2025: - **Net buy pressure**: 4.7M COW (0.5% of total supply) - **Buybacks exceeded emissions** in 11 out of 12 months - **37.6M COW bought back** vs. 32.9M emitted This marks sustainable tokenomics with consistent net deflationary pressure. The buyback program, initiated in April 2024 under CIP-38, converts protocol fees into COW tokens through weekly TWAP purchases to offset solver emissions.