CoW DAO

CoW Protocol, a decentralized trading platform that aggregates prices across multiple exchanges and protects users from maximal extractable value (MEV), is currently experiencing a technical outage. The issue was caused by a bug introduced during an update pushed by the core development team. The team is working to resolve the problem, but it may take some time before normal operations resume. Further updates will be provided as the situation progresses.

The CoW DAO has implemented CIP-38, which requires the protocol to collect fees from solvers in the form of $COW tokens, effectively creating an ongoing buyback program. Two Time-Weighted Average Price (TWAP) orders have been initiated, one on Ethereum for 141 ETH and another on Gnosis Chain for 70 ETH, to convert and send the collected fees to a DAO-owned address. Additional TWAPs will be created as new fees are collected. Last week, the protocol collected 88 ETH in fees following the implementation of CIP-34.

CoW Protocol has announced the launch of CoW Hooks, a new feature that allows users to add intent-based interactions before and after token swaps. With CoW Hooks, users can create automations such as sending tokens, swapping, and then staking, or unstaking, swapping, and bridging tokens. The feature also supports opening CDPs (Collateralized Debt Positions) and then swapping and bridging tokens. CoW Protocol claims to find the lowest price for trades across all exchanges and aggregators, including Uniswap and 1inch, while also protecting users from Miner Extractable Value (MEV) issues.

The article examines the shortcomings of automated market makers (AMMs) in decentralized finance (DeFi), such as exposure to miner extractable value (MEV) attacks. It then discusses the benefits of auction mechanisms like Dutch auctions and batch auctions as alternatives to AMMs. Dutch auctions offer solver competition, MEV protection, but are centralized. Batch auctions group multiple orders, enable cross-asset swaps, and incentivize better execution while retaining MEV protection. The article highlights CoW Swap as a major implementation of batch auctions, detailing its approach of collecting order intents, conducting auctions for solvers, and executing winning orders on-chain. It suggests batch auctions aligning with Ethereum's block auction mechanism make them well-suited for DeFi trading.

MEV Blocker, a product launched by CoW DAO a year ago to protect users from maximal extractable value (MEV) attacks, has reached an important milestone. As per CIP-40, MEV Blocker has started earning revenue from builders, allowing CoW DAO to continue supporting the product while keeping it completely free for users. Since its launch, MEV Blocker has rebated almost 1750 ETH to users, with a median refund of 0.007 ETH (approximately $24). It has defined a new category of user-protective RPC endpoints known as 'mev blockers.' MEV attacks are considered theft, and MEV Blocker aims to protect users from such attacks as a public good.

In February, CoW Protocol launched the first live AMM designed to protect liquidity providers from the dangers of MEV. The new CoW AMM received significant media coverage and attention from influencers across the crypto space. Other notable developments included improvements to the user interface, a Twitter Space explaining the CoW AMM, marketing videos featuring memes, the COW token listing on TokenUnlocks, and integration with Ajnas for borrowing DAI against COW tokens.

In March, MEV Blocker, a service that protects users from Maximal Extractable Value (MEV) on decentralized exchanges, safeguarded over $13.5 billion in trading volume. Additionally, the service returned a total of 333 ETH to 226,000 users, providing a layer of protection against front-running and other forms of MEV extraction.

Gnosis DAO, in collaboration with Karpatkey, is launching a 6-month program to incentivize solvers on the Gnosis Chain. The program aims to award 180,000 xDAI to active solvers, with the goal of improving trade execution for users of the CoW Protocol. CoW Protocol finds the lowest price for trades across multiple exchanges and aggregators while protecting users from maximal extractable value (MEV) issues.

CoW Swap, a decentralized exchange platform, has announced the launch of a new feature called 'I'm Feeling Lucky'. This feature allows users to randomly select a token to buy when swapping their cryptocurrency. The platform claims that the secret to successful crypto investing is simply 'getting lucky'. Users can select their sell token, click the 'I'm Feeling Lucky' button, and CoW Swap's solver network will randomly buy a 'shitcoin' token. The feature is available on both the Ethereum Mainnet and Gnosis Chain, and trades will be backed by CoW Swap's MEV protection and competitive pricing. CoW DAO, the organization behind CoW Swap, aims to create a fairer financial system through its products like CoW Swap, CoW Protocol, and CoW Blocker.

CoW Swap, a decentralized exchange protocol, has implemented a unique feature called surplus-capturing limit orders. When a price spike occurs, CoW Swap provides users with the more favorable rate, unlike other exchanges that would fill the order at the limit price. A recent example showcased a user who was willing to sell ANGLE tokens for $0.085 each but received $0.091 per token due to a price spike, resulting in an additional $2,000 in profit. This feature aims to benefit users by sharing the surplus gains, which other exchanges typically keep for themselves.