CoW Swap, a DEX Aggregator, Targets 33% Trading Boost With New Feature, More Rewards

Swap cows, and Decentralized exchange The aggregator, is to introduce a function that is said to strengthen the number of transactions it can handle and offer other rewards to those who make business easier.

This feature, called Combinatorial Auctions, will allow solvers, those who direct trading with aggregator, for the first time to work to offer traders the best swaps. The aggregators are one -off shops looking for more Dex to find the one that offers the most cost -effective stores.

The existing Cow Swap system is “Rigid, because only one solver can win every auction,” said Andrea Canidio, an older Cow Dao research economist. “Only one can succeed and force the second order to wait for another auction.”

Under a new system that has passed The DA vote on Thursday will be able to propose a more efficient solution for pending orders if they exist.

“If the combined solution creates a shared value for all parties, it will win; otherwise different solvers can separate different orders separately,” Canidio said.

Cow Dao estimates that this step could increase the order throughput by approximately 33%. This is significant because the competition between DEX aggregators warms up.

Over the past week, a cow swap and a rival aggregator were 1 inches with a neck and neck around $ 2 billion in trading volume per Ethereum, according to defillama data. If the new Cow Swap function works as predicted and increases trading permeability, it could help it pull forward.

The exchange of cows works differently from most other decentralized exchanges and aggregators. Instead of use liquid pools To facilitate shops such as Uniswap, uses the Peer-to-peer system. Users send shops and then third parties – solvers – compete to make buyers effectively connect with sellers in one transaction. The main advantage of this system is that it prevents traders who have become victims of negative forms Maximum extractable valueor Mev.

Other rewards

Since more solvers can participate in the exchange of cows at the same time, the average rewards that can earn, should increase by approximately 25%, Cow Dao said.

Although it is great for solver, it is not so cut and dried for the protocol.

The researchers of the cows swap are compensated in the tokens of the cows, the token of the protocol management. For example, if the swap of cows pays more in rewards without a reasonable amount of increased trading, it will damage the effectiveness of the protocol.

Canidio said it expected that swap cows will benefit from higher transactions with “less than proportional to the solver reward”.

Simply put, combinatorial auctions should make the exchange of cows more efficient.

Cow Swap says that it expects testing a new system to start around 20 May and the complete start of all chains will run around 3 June.

Read more: Why one of the most open members of Uniswap Dao has just left frustrated