CoW DAO

The CoW DAO core team has published their perspective on value distribution mechanisms for the protocol. **Key Points:** - Proposal builds on community research and feedback - Developed in collaboration with Aragon Project - Responds to the Value Distribution Mechanism RFP - Now open for community discussion on the forum The framework represents a significant step in determining how value flows through the CoW Protocol ecosystem. Community members are invited to review and provide input on the [proposal](https://forum.cow.fi/t/cow-daos-path-to-value-distribution-core-team-view/3454).

CoW Protocol has introduced **Atomic Bundles**, a framework that combines solver-settled swaps with downstream protocol actions in a single coordinated flow. **Key features:** - Sign one intent, solvers handle execution automatically - Enables multi-step workflows across lending, vaults, and treasury management - Position updates follow automatically without manual intervention - Now available on Euler The framework allows users to execute complex DeFi operations where the swap component is handled by CoW Protocol's execution layer, while subsequent actions (like depositing into lending protocols) happen atomically. Learn more: [Atomic Bundles documentation](https://cow.fi/learn/intents-can-now-do-more-introducing-atomic-bundles)

Euler Finance has integrated CoW Protocol to improve execution on lending operations that involve token swaps. **Key features:** - Lending actions like borrowing, swapping collateral, and debt repayment now route through CoW Protocol - Solvers compete to find optimal execution prices - Built-in MEV protection for all swap operations - Position updates happen automatically **Why it matters:** Most DeFi lending operations include a swap component - whether borrowing one asset to swap for another, or selling collateral to repay debt. Poor execution on these swaps directly impacts the final outcome of lending positions. The integration allows users to multiply positions, swap collateral, and repay debt with competitive pricing and protection from MEV extraction, all within a single flow.

**Final day to submit claims for CoW Protocol domain hijack compensation** Victims of the CoW.Fi domain hijacking incident have until **today, May 14** to submit claims for discretionary grants. **Required information:** - Impacted wallet address - Transaction hashes - Affected assets - Your name Send claims to help@cow.fi with subject line: *Discretionary Grant Claim for CoW.Fi Domain Hijack Incident* Full eligibility details: [forum.cow.fi](https://forum.cow.fi/t/cip-86-discretionary-grants-program-for-victims-of-the-cow-fi-domain-hijacking/3431/11) **Action needed:** If you were affected or know someone who was, submit your claim before the deadline expires.

CoW Protocol announced it will compensate affected users following a security incident, despite the failure not originating from their platform. The protocol emphasized its commitment to user trust and taking responsibility for the impact on their community. **Key Points:** - Protocol will make affected users whole financially - Security failure occurred outside CoW Protocol's systems - Decision reflects company's prioritization of user relationships - Continues focus on community security and well-being The move demonstrates accountability in the web3 space, where protocols often face difficult decisions about compensation when third-party vulnerabilities affect their users.

**CoW DAO has passed CIP-86**, a community governance proposal establishing a discretionary grants program. The program will reimburse users who lost funds during the April 14 DNS hijacking incident on CoW Swap. **Key details:** - The proposal passed through community governance vote - Aims to make victims whole as quickly as possible - Addresses losses from the domain hijacking attack The incident involved significant sums, requiring formal governance approval before implementation. The community discussed proposal details on the [CoW DAO forum](https://forum.cow.fi/t/cip-draft-discretionary-grants-program-for-victims-of-the-cow-fi-domain-hijacking/3431).

**CoW DAO is compensating users affected by an April 14 DNS hijacking attack**, even though the protocol itself was never compromised. **What happened:** - Attackers used social engineering to gain control of cow.fi domain for ~4.5 hours - A phishing site mimicked CoW Swap, tricking users into approving malicious transactions - Attack occurred in two phases: wallet drainer, then fake modals harvesting seed phrases **CoW's response:** - Proposed a discretionary grants program to make victims whole - Published full [post-mortem](https://x.com/CoWSwap/status/2044924940886163780) detailing the incident - Rotated all tokens and audited deployments - Moved operations temporarily to swap.cow.finance The compensation proposal requires governance approval due to the high sums involved. Users can review details and provide feedback on the [CoW DAO forum](https://forum.cow.fi/t/cip-draft-discretionary-grants-program-for-victims-of-the-cow-fi-domain-hijacking/3431).

CoW Protocol has introduced **Atomic Bundles**, a reusable smart contract template enabling developers to execute complex, multi-step DeFi operations atomically in a single settlement. **Key capabilities include:** - Loop-borrow-redeposit strategies - Repay debt with collateral - Flashloan-enabled executions - Atomic open/close flows for perpetuals - Multi-step payment and treasury operations All executions maintain CoW Protocol's core features: solver competition, MEV protection, and surplus generation. **For builders**, Atomic Bundles simplify development across lending (one-click looping, collateral swaps), perpetuals (atomic open/close flows), and payments (multi-step flows with zero mid-execution risk). Previously, developers needed to write custom wrapper contracts from scratch for each use case. Now they can fork the template, add their logic, and plug into CoW Protocol's solver network. Read more: [Introducing Atomic Bundles](https://cow.fi/learn/intents-can-now-do-more-introducing-atomic-bundles)

**CoW Swap is now live on Linea**, Ethereum's L2 network, bringing gasless trading and advanced order types to the platform. **Key features on Linea:** - Gasless swaps by default - no ETH needed for gas - Limit and TWAP orders - Swap & Send functionality - Upcoming Swap & Bridge feature **How it works:** CoW Protocol's solver network competes to find the best prices across DEXs while protecting users from MEV attacks. **Expanded Aave integration** also launched, powering more DeFi operations: - Collateral swaps - Repay-with-collateral transactions - Debt swapping All operations are **gas-optimized and MEV-protected**. The integration uses intent-based transactions - users specify what they want, and solvers find the optimal execution path. **Benefits include:** - Solver-routed execution for better prices - Shared liquidity across $10B+ monthly volume - Simplified user experience with fewer approvals Try CoW Swap on Linea: [swap.cow.fi](https://swap.cow.fi/#/59144/swap/WETH/0x176211869cA2b568f2A7D4EE941E073a821EE1ff) Learn more about the Aave integration: [aave.com/blog/aave-cow-swap](https://aave.com/blog/aave-cow-swap)

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)