How Money Actually Flows in DeFi
How Money Actually Flows in DeFi
🔧 DeFi's Hidden Plumbing
DeFi operates like financial plumbing, with clear pathways for value movement between different participants. The system connects liquidity providers, traders, and MEV bots in an interconnected network of transactions and value flows.
Key components:
- Liquidity pools provide trading depth
- Traders execute swaps and generate fees
- MEV bots optimize transaction ordering
Learn more about the mechanics at CoW Protocol's learning hub
DeFi isn't magic. It's plumbing. 👨🔧 Behind the buzzwords are real flows of money, value, and risk. 💸 Here's how it actually moves - from LPs to traders to MEV bots: cow.fi/learn/how-mone… 👆
Finding the Right DEX: A Comprehensive Guide
A new analysis compares major DEXes, highlighting key differences in architecture and performance: - CoW Swap leads in decentralization with a more distributed solver network (top solver: 25%) vs competitors (1inch: 80%, UniswapX: 90%) - Shows superior performance for large trades (>100 ETH) - Handles ~$200M daily volume vs 1inch ($60M) and UniswapX ($30M) Key features that set DEXes apart: - MEV protection capabilities - Gasless trading options - Price optimization methods - Solver network distribution [Read the full analysis](https://cow.fi/learn/finding-the-right-dex-for-you-why-de-xes-aren-t-all-built-the-same)
CoW Protocol Maintains DEX Aggregator Leadership on Ethereum
CoW Protocol continues its market dominance in the DEX aggregator space on Ethereum, securing a 31.8% market share in May 2025. This performance exceeds the combined share of major competitors 1inch and Fusion (29.6%). The protocol has shown consistent leadership, previously capturing 35.6% market share in April 2025 compared to competitors' 32.9%. Key factors driving success: - Superior pricing mechanisms - Enhanced routing capabilities - MEV protection features For best trading rates, visit [CoW Protocol](https://swap.cow.fi)
AI Agents in DeFi: A Practical Guide
AI agents are being integrated into decentralized finance (DeFi) applications, offering automated solutions for: - **Trading optimization** and market analysis - **Risk assessment** in lending protocols - **Automated portfolio management** These AI-powered tools help reduce human error and enable 24/7 market participation. The [AImstrong AI Lending Agent](http://app.aimstrong.ai) demonstrates practical applications in automated lending decisions. Learn more about AI agents in DeFi through our comprehensive guide at [CoW Protocol](https://cow.fi/learn/how-ai-agents-can-be-used-in-defi).
MEV Blocker RPC Delivers Superior Swap Execution on Ethereum
A comprehensive analysis of Ethereum RPCs reveals MEV Blocker consistently outperforms competitors in swap execution: - Provides 9 basis points better output than Merkle/Blink - Delivers 21 basis points more than Flashbots per swap - Returns 100% of backrun value to users (vs 0% for some competitors) - Averages 0.00350 ETH per backrun The study, examining 90+ swaps across various tokens, confirmed statistical significance. MEV Blocker's Order Flow Auction (OFA) design proves notably more efficient for both liquid and illiquid pairs. [Read the full research paper](https://arxiv.org/abs/2505.19708)