CoW DAO Launches MEV-Capturing AMM to Protect Liquidity Providers

By CoW DAO
Mar 7, 2024, 5:03 PM
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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.​

Sources

sharing my thoughts on the CoW AMM - a novel mev-capturing AMM ๐Ÿ’ญ @CoWSwap just announced just announced their new AMM x.com/cowswap/statusโ€ฆ CoWSwap continues to be one of the most underrated projects in crypto in my opinion, accruing nearly $35B in trading volume from over

CoW DAO
CoW DAO
@CoWSwap

๐ŸŒŠ ๐ŸŒŠ ๐ŸŒŠ 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.

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