CoW DAO

CoW DAO kicked off 2026 with significant developments in January: - **Chain expansion**: The protocol launched on a new blockchain network - **Revenue growth**: Posted strong protocol revenue numbers for the month - **Performance**: The DAO demonstrated momentum heading into the new year The organization has published a [detailed January recap](https://cow.fi/learn/cow-dao-monthly-recap-january-2026) covering all developments from the month. CoW Protocol specializes in finding optimal trade prices across multiple exchanges and aggregators while providing MEV protection for users.

The DAO has voted to renew its core funding programs for 2026, ensuring continued support for builders and contributors. **Key Approvals:** - **CIP-82**: Grants Program renewed - **CIP-83**: Team Grants renewed with enhanced accountability measures The renewed Team Grants now include **stricter, performance-linked milestones**, introducing more rigorous oversight for funded projects. These governance decisions establish the operational framework for the year ahead, with builders and contributors now confirmed for 2026.

CoW DAO's Request for Proposals (RFP) for designing a **Value Distribution Mechanism** has closed submissions and entered the review phase. **What's Being Decided:** - How protocol profits are captured - Management of treasury funds - Distribution mechanisms to token holders The RFP aims to establish a sustainable framework for CoW Protocol's economic model, defining the path forward for value accrual to the community. Proposals are currently being evaluated by the DAO. [Read the full RFP details](https://forum.cow.fi/t/rfp-cow-value-distribution-mechanism/3328)

CoW Protocol has become the **first aggregator on Plasma Network**, enabling gasless stablecoin swaps on the platform. The protocol also launched three new integrations: - **HeyElsaAI**: Integration with AI agents - **Ondo Finance**: Support for institutional assets - **TokenPocket**: Mobile wallet integration These additions expand CoW Protocol's reach across different user segments, from AI-powered trading to institutional investors and mobile users. The Plasma Network integration builds on the stablecoin-native chain that launched in September 2025 with USDT at its core.

**Protocol Economics Highlights** COW token demonstrated strong performance in 2025: - **Net buy pressure**: 4.7M COW (0.5% of total supply) - **Buybacks exceeded emissions** in 11 out of 12 months - **37.6M COW bought back** vs. 32.9M emitted This marks sustainable tokenomics with consistent net deflationary pressure. The buyback program, initiated in April 2024 under CIP-38, converts protocol fees into COW tokens through weekly TWAP purchases to offset solver emissions.

MetaMask users can now swap USDC for [Ondo Finance](https://ondo.finance) tokenized assets directly through the wallet interface. **Key Details:** - Trades settle through [CoW Protocol](https://cow.fi)'s solver network - Execution is MEV-protected with potential surplus generation - Self-custodial access maintained throughout the process - Available to eligible MetaMask swaps users This integration addresses a critical need for real-world asset (RWA) markets: neutral settlement infrastructure that doesn't compromise on user custody. By routing through CoW Protocol's decentralized solver network, users can access tokenized assets while avoiding the front-running and value extraction common in traditional DEX swaps. The move signals growing infrastructure maturity for tokenized markets, where maintaining self-custody while accessing traditional financial products has been a persistent challenge.

CoW Protocol has published **CIP-74**, a retrospective analysis examining how protocol fees align with user rewards and revenue generation. Key points: - The proposal reviews the effectiveness of current fee models - Aims to better align incentives between the protocol and its users - Builds on previous discussions about sustainable revenue models that don't compromise user protection The full proposal and community discussion are available on the [CoW Protocol forum](https://forum.cow.fi/t/cip-74-retrospective-aligning-rewards-with-revenue/3358?u=marshy). Current fee policy details can be found in the [official documentation](http://docs.cow.fi/governance/fees).

CoW Protocol has reduced fees on correlated asset pairs, including all stablecoin-to-stablecoin transactions, from 2 basis points to 0.3 basis points. This change addresses a competitive disadvantage created by a November fee policy update that made the protocol less attractive for stable-to-stable trades. **Key details:** - Fee reduction applies to all correlated asset pairs - New rate: 0.3 bps (down from 2 bps) - Represents an 85% fee decrease - Aims to restore CoW Protocol's competitiveness in the stablecoin trading market The adjustment makes CoW Protocol more cost-effective for users trading between stablecoins and other correlated assets.

**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)