CoW Protocol Upgrades to Fair Combinatorial Auction (FCA)

**CoW DAO has issued a security alert** after a team member's X (Twitter) account was compromised. **Key points:** - Ignore any unexpected messages from the compromised account - Disregard token announcements, fundraising requests, or external links - Official updates only come from verified CoW DAO channels This marks the second security incident for the organization, following a similar breach in October 2024 where unauthorized tweets promoted a fake token launch and airdrop. **Action required:** Users should verify all CoW DAO communications through official channels only and remain vigilant against potential scam attempts.

CoW Swap uses batch auctions to protect traders from MEV (Maximal Extractable Value) attacks. The protocol works by having solvers compete to find the best execution prices for trades. **How it works:** - Trades are grouped into batches rather than executed individually - Multiple solvers compete to provide optimal pricing - This structure prevents predatory bots from front-running or sandwiching transactions The protection proved effective during recent market volatility, when MEV bots extracted millions from traders on other decentralized exchanges while CoW Protocol users avoided these costs entirely.

CoW Swap has introduced a new **Swap-and-Bridge** feature that combines token swaps and cross-chain transfers into a single transaction. **Key features:** - Eliminates the need for multiple browser tabs and separate transactions - Automatically finds the optimal swap route and bridge route - Simplifies cross-chain value transfers in one smooth flow The feature builds on CoW Protocol's existing capabilities, which include finding the lowest prices across exchanges like Uniswap and 1inch while providing MEV protection.

**Kraken's Ink L2**, built on the OP Stack, aims to bridge CeFi and DeFi. However, on-chain trading typically involves managing gas fees, token approvals, and navigating complex DeFi protocols. **CoW Protocol addresses these friction points** by: - Finding the lowest prices across all exchanges and aggregators - Protecting users from MEV (Maximal Extractable Value) - Simplifying the trading experience on Ink L2 The integration makes Ink more accessible to users transitioning from centralized to decentralized finance.

CoW Swap has launched on Ink blockchain, offering MEV-protected trading without gas fees. **Key Features:** - Gas-free token swaps on Ink's DeFi infrastructure - MEV protection built into the protocol - Price aggregation across multiple exchanges CoW Protocol sources the best prices by comparing rates across platforms like Uniswap and 1inch, while shielding users from MEV attacks that other aggregators don't prevent. This follows CoW Swap's recent deployment on Plasma Network in January, expanding its presence across multiple chains focused on efficient, user-friendly trading experiences.