How Introducing Competition Fixes De-Fi w/ Anna George and Andrea Canidio (CoW Protocol)
Feb 12, 2024
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Guests Anna George and Andrea Canidio discuss CoW Swap, a platform for complex exchanges. They talk about its success, roadmap, and over $1B in monthly trading volume. They explore the impact of MEV on blockchain decentralization, layer 2 solutions, function maximizing AMM, and the use cases of Car Swap protocol.
CoW Swap is an intent-based DEX aggregator that maximizes trade outcomes for users by allowing them to express their trading intents and having professional solvers compete to find the best execution solution.
Cow Swap aims to provide a seamless trading experience on Ethereum, leveraging its global settlement layer and integrating new solutions like layer 2 scaling, while prioritizing user protection by offering competitive prices, reduced slippage, and protection against MEV.
Deep dives
Cow Swap: Revolutionizing Trade Execution
Cow Swap is an intent-based DEX aggregator that maximizes the outcome for users. It allows users to express their trading intents, such as buying or selling specific assets, and a network of professional solvers competes to find the best execution solution. The solver who provides the most value to the users wins the privilege to execute the trade. Cow Swap ensures users get the best possible execution price with reduced slippage and gas costs. It also protects users from MEV and sandwich attacks. The platform is now planning to launch Cow AMM, a function-maximizing AMM that aims to provide better trade execution and profitability for liquidity providers. Cow Swap is continuously expanding its range of order types, including programmatic orders, to cater to various trading strategies. The team is also exploring pre and post-order interactions, allowing users to bundle multiple transactions for seamless trade execution.
Building on Ethereum's Strengths
Cow Swap is built on Ethereum, utilizing its global settlement layer for price discovery and trading. While other chains are emerging, Cow Swap leverages the liquidity on Ethereum, making it more accessible for traders. The platform aims to provide a seamless trading experience, ensuring users don't have to worry about which network they are operating on. As Ethereum evolves into a modular blockchain, Cow Swap is at the forefront of integrating new solutions, such as layer 2 scaling, into its trading infrastructure. The team recognizes the importance of user protection and aims to eliminate value extraction from traders. By providing competitive prices, reduced slippage, and MEV protection, Cow Swap aims to make trading on Ethereum more efficient and user-friendly.
The Future of Trade Execution
Cow Swap's roadmap includes exciting developments such as the launch of Cow AMM, a liquidity pool accessible only through Cow Swap's batch trading mechanism. This aims to provide a more profitable and secure trading experience for liquidity providers. The team is also focused on expanding the range of programmatic orders, allowing users to automate trading strategies and maximize returns. Additionally, Cow Swap is exploring pre and post-order interactions, enabling users to seamlessly execute multiple transactions in a single trade. The platform's goal is to continually innovate and improve the trading experience on Ethereum, while embracing new technologies and liquidity sources to ensure optimal trade execution.
Today’s guests are Anna George, CEO and Co-Founder and Senior Research Economist Andrea Canidio of CoW Swap. CoW Swap is a platform addressing the challenge of coordinating complex exchanges among individuals with diverse needs. Using an acronym for "coincidence of wants" (CoW), the platform enables users to express their trading intentions, such as swapping assets like ETH for specific tokens. The system employs specialized entities known as "searchers" to analyze and optimize multiple intents, forming intricate solutions. The platform's unique approach to facilitating communication between off-chain computation and on-chain settlement has contributed to its success, with over $1 billion in monthly trading volume. This conversation is an incredible look into CoW Swap - how it is built and how it works, and go through a lot of exciting CoW Swap roadmap/alpha.
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