Understanding Automated Market Makers (AMMs)
Understanding Automated Market Makers (AMMs)
🤖 AMMs for Dummies
CoW Protocol has released a comprehensive guide explaining automated market makers (AMMs) for DeFi beginners. The guide covers fundamental concepts of decentralized trading and liquidity provision.
Key points from recent AMM developments:
- PancakeSwap's prediction bot operates with 0.001 BNB minimum
- 3% fees used for burns & buybacks
- 5-minute trading rounds on BNB Chain
The educational content aims to help users better understand DeFi trading mechanics and make informed decisions when participating in decentralized exchanges.
It's Good Friday 🐣 High time for an explainer on automated market makers. 🙏 You're welcome! 🫡 cow.fi/learn/understa… 👆
What are MEV bots and how do they make money?
MEV (Maximal Extractable Value) bots are automated programs that monitor blockchain transactions to profit from price differences and user trades. Key points about MEV bots: - They scan mempool for profitable trading opportunities - Common strategies include frontrunning and sandwich attacks - Can significantly impact regular traders' transaction costs CoW Protocol offers protection against MEV through: - Batch auctions - Off-chain order matching - Professional solvers competing for best execution Learn more about protecting your trades at [CoW Protocol's MEV Guide](https://cow.fi/learn/what-are-mev-bots-and-how-do-they-make-money)
MEV Blocker Reaches $60B Protected DEX Volume Milestone
MEV Blocker, a key tool in protecting DEX trades from MEV attacks, has achieved a significant milestone by safeguarding $60 billion in DEX trading volume. The protection service continues to demonstrate strong growth, having previously secured over $170B in total trading volume. Key points: - Latest milestone: $60B in protected DEX volume - Tool remains accessible and easy to integrate - Available for both individual users and platforms Integration with MEV Blocker can be completed in minutes through [CoW Protocol's platform](https://cow.fi/mev-blocker).
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!
MEV Blocker Partners with DeFi Saver for Enhanced User Protection
MEV Blocker has announced a partnership with DeFi Saver to enhance user protection against Miner Extractable Value (MEV). Key points: - DeFi Saver's TxSaver feature now integrates MEV Blocker - This integration aims to make transactions smoother and safer - Users' trades will be protected from prying eyes - The partnership offers improved rebates and protection This collaboration represents a significant step in safeguarding DeFi users from potential MEV exploitation. Users can expect enhanced privacy and potentially better trade execution through this integration. To learn more about TxSaver and its use of MEV Blocker, check out the detailed thread provided by DeFi Saver.