Crypto Basics

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Governance

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Product Info


## TL;DR

-   During the month of June, CoW Protocol handled a total volume of  **$2.19B**  and generated a surplus of  **$14M**
-   In exciting news, CoW DAO  [received a new look](https://x.com/CoWSwap/status/1805606262744531260)  and CoW Protocol  [launched on Arbitrum](https://x.com/CoWSwap/status/1797996272349323412)
-   In terms of Governance, CoW DAO executed CIPS  [46](https://forum.cow.fi/t/cip-46-funding-for-marketing-business-development-services-service-agreement-no-1/2476/1)  and  [47](https://forum.cow.fi/t/cip-47-funding-for-the-purpose-of-facilitating-the-listing-cow-token-on-cexs/2458)

## Protocol Stats

This month, CoW Protocol settled a total of  **$2.19B**

![1-june-2024-highlights.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/1_june_2024_highlights_bbbd21676b.webp)

The top batches worth highlighting are the following:

**Batch containing the highest volume**  **(**[**Transaction details**](https://explorer.cow.fi/tx/0x15a8acee86e3ddd8943f6cb7bf7b6c9dfc98219f0d49dede6501f30e1e6ad327?tab=orders&vis=transfers)**)**: The total batch volume was  **$27,086,967** and it was created by two traders who were swapping  **WeETH to WETH**  and  **USDT to USDC**.

![2-june-2024-highlights.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/2_june_2024_highlights_997a9b5cf0.webp)

**Batch with the highest amount of surplus**  **(**[**Transaction details**](https://explorer.cow.fi/tx/0xfde66662c4df3e9c7e4ea1cf0dc6e645b53912486826f892d2c7b4dc37947518?tab=orders)**)**: The total batch volume was  **4,119 ETH** and it was created by two traders — one swapping  **WEETH to WETH**  and the other swapping  **ETH to ZAAR.** The batch achieved a surplus of  **$71,600**  **(0.49%).**

![3-june-2024-highlights.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/3_june_2024_highlights_5ed5d8db9d.webp)

During the month of June, the top 10 traders traded a total of  **$17,397,532.**

![4-june-2024-highlights.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/4_june_2024_highlights_9025cd7c9a.webp)

In the table below you can see the total volume for this month’s biggest trades. The most active trader executed a whopping  **$4,143,954**  in trades with CoW Protocol this month.

![5-june-2024-highlights.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/5_june_2024_highlights_e205f5c02b.webp)

## Solvers

In  June, solvers generated a total of  **$14M**  in surplus, which is money in the pockets of traders.

![6-june-2024-highlights.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/6_june_2024_highlights_f3e48e0cc2.webp)

Below you can find a breakdown of how each solver performed in June.

![7-june-2024-highlights.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/7_june_2024_highlights_87f40f594b.webp)

## Governance

It has been a hectic month in terms of governance! The CoW cannot be stopped 💪

![8-june-2024-highlights.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/8_june_2024_highlights_8ec68b11a8.webp)

## Executed Proposals

The DAO executed one important proposal this month:

-   [CIP-45: Balancer & Cow Protocol Strategic Partnership — Launching CoWAMM Pools](https://snapshot.org/#/cow.eth/proposal/0x5a7435a287fda55133fa5973b4979465687c341def703564986f2771780352b0)

## Draft Proposals

This month, there were two new proposals asking for feedback before moving into the next phase, final CIPs, in their current form:

-   [CIP-46: Funding for Marketing & Business Development Services — Service Agreement No 1](https://forum.cow.fi/t/cip-46-funding-for-marketing-business-development-services-service-agreement-no-1/2476/1)
-   [CIP-47: Funding for the purpose of facilitating the listing COW token on CEXs](https://forum.cow.fi/t/cip-47-funding-for-the-purpose-of-facilitating-the-listing-cow-token-on-cexs/2458)

Make sure to read them and leave comments — your feedback is highly appreciated and will help move these important topics forward. If you are interested in submitting a proposal to the CoW DAO, make sure to use the following  [template](https://forum.cow.fi/t/cip-0-template/28).

## CoWmunity News

-   CoW DAO has a  [new look](https://x.com/CoWSwap/status/1805606262744531260)  including a new logo, new landing pages for each product, and an entirely overhauled brand feel!
-   CoW Protocol  [launched on its first L2](https://x.com/CoWSwap/status/1797996272349323412)  — Arbitrum and  [participated in an X Space with members of the Arbitrum foundation](https://x.com/CoWSwap/status/1800544944396075390)
-   Curve finance  [launched a fee burner using the Programmatic Order Framework](https://x.com/CoWSwap/status/1806001775335580016)
-   Published a  [report on the findings of the second fee test](https://x.com/CoWSwap/status/1799172243995693195)
-   Put  [out a call for CoW DAO delegates](https://x.com/CoWSwap/status/1806741521594720490)
-   Reduced TWAP order minimums to just  [$1,000 per order segment](https://x.com/CoWSwap/status/1799446283662536789)
-   Helped facilitate  [Gnosis DAO’s $30 million buyback program](https://x.com/CoWSwap/status/1800974615264756174)
-   Got  [featured in the “Our Network” newsletter](https://x.com/ournetwork__/status/1807202388538978436)
-   Published a flagship “[What is MEV](https://cow.fi/learn/what-is-mev)” article

## Open Job Positions

[**Content Marketing Manager**](https://boards.eu.greenhouse.io/cowswap/jobs/4343031101)

[**Senior Data Engineer**](https://boards.eu.greenhouse.io/cowswap/jobs/4362645101)

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Welcome back to another CoW update, where we break down the most notable developments of the last few weeks at CoW DAO.


CoW DAO June 2024 Highlights

George Hristov

After three years and thousands of hours of research with crypto whales, DeFi degens, finance bros, and specialized fortune tellers called “blockchain oracles”, CoW Swap has discovered that the secret to investing in crypto is simply  getting lucky.

That’s why CoW Swap is proud to announce its newest innovation — the “I’m Feeling Lucky” button.

That’s right — inspired by Google’s iconic search feature, CoW Swap is adding a splash of luck to web3. Just select a sell token, tap “I’m Feeling Lucky”, and let CoW Swap’s best-in-class solver network buy a random shitcoin for you.

## Putting the “luck” in “hodl”

Have you ever seen a crypto millionaire and thought “Damn, that was all luck!”

Wish you could “get lucky” the same way?

Well now you can.

Just head over to  [CoW Swap](https://swap.cow.fi/#/swap?utm_campaign=blog-feeling-lucky)  and use the “I’m Feeling Lucky” button right in the swap modal to let luck pick your new favorite token!

![1-feeling-lucky.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/1_feeling_lucky_609c959c95.webp)

## How to get lucky

To get lucky, simply:

1.  Navigate to  [CoW Swap](https://swap.cow.fi/#/swap?utm_campaign=blog-feeling-lucky)
2.  Pick ETH or a stablecoin as your sell token
3.  Click the “I’m feeling lucky” button where the “Swap” button normally appears
4.  CoW Swap will then pick a random “lucky” token for you as your “buy” token
5.  ????
6.  Profit!!!! (not financial advice)

Don’t worry — you’ll have a chance to confirm your trade before you place it. If you trust the luck of the CoW draw, simply click “Swap” once your random token appears and your transaction will proceed as normal.

## Luck out with CoW Swap this April 1

So if you’re tired of being the fool, let CoW Swap turn your luck around. No joke, the feature is real and  [live on CoW Swap](https://swap.cow.fi/#/swap?utm_campaign=blog-feeling-lucky)  for both Ethereum Mainnet and Gnosis Chain!

They say anything goes up in a bull market… While we can’t guarantee that your lucky token will pump, we can promise that your trades will always be backed by CoW Swap’s signature MEV protection and the best prices in DeFi.

Degen in peace this April 1 and let luck take the wheel with  [CoW Swap](https://swap.cow.fi/#/swap?utm_campaign=blog-feeling-lucky)!

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Find your lucky clover in CoW Swap’s greener pastures


CoW Swap Introduces “I’m Feeling Lucky” Mode for DeFi Trades

CoW DAO, which builds user-protective products like CoW Swap and MEV Blocker, is launching the first MEV-capturing AMM — CoW AMM.

While CoW DAO’s other products protect traders from MEV, CoW AMM is the first product from CoW DAO built to protect liquidity providers. CoW AMM is the first product on any blockchain to tackle the LVR problem head on.

## The LVR Problem

First described by Jason Milionis, Ciamac C. Moallemi, Tim Roughgarden, and Anthony Lee Zhang in the paper  [Automated Market Making and Loss-Versus-Rebalancing](https://arxiv.org/abs/2208.06046), LVR is defined as the losses LPs incur due to arbitrage bots constantly rebalancing liquidity pools.

Research suggests that:

-   Liquidity providers for major token pairs lose 5–7% of their liquidity due to LVR¹
-   In aggregate, arbitrageurs are responsible for well over $500M in LP losses every year²
-   LVR accounts for more MEV than frontrunning and sandwich attacks combined

LVR disincentivizes liquidity provision in DeFi, restricting its potential utility and growth. And LVR is a contributing factor to block-builder centralization, which many people consider undesirable for Ethereum as a whole.

## How CoW AMM Works

The CoW AMM is a special kind of automated market maker designed to help liquidity providers capture MEV from arbitrageurs. According to research by Andrea Canidio and Robin Fritsch in the paper “[Arbitrageurs’ profits, LVR, and sandwich attacks: batch trading as an AMM design response](https://arxiv.org/pdf/2307.02074v3.pdf),” the most promising way to capture LVR is by using batch auctions to rebalance liquidity pools based on surplus.

![1-cow-dao-launches-cow-amm.gif](https://celebrated-gift-f83e5c9419.media.strapiapp.com/1_cow_dao_launches_cow_amm_303d6058bb.gif)

CoW AMM, therefore, works as follows:

1.  Liquidity providers deposit tokens into protected CoW AMM liquidity pools
2.  This liquidity becomes available to CoW Swap traders, who can access it similarly to other sources of liquidity
3.  Solvers bid to rebalance CoW AMM pools whenever there is an arbitrage opportunity
4.  The solver that offers the most surplus to the pool wins the right to rebalance the pool

This design eliminates LVR by capturing arbitrage value for LPs and shielding it from MEV bots.

Said another way: while most AMMs allow arbitrageurs to make money at the expense of their LPs, CoW AMM protects this money for the LPs instead.

## Expected Outcomes

Research suggests that CoW AMM LPs will fare as well if not better than CFAMM LPs.  [Backtesting over 6 months in 2023](https://arxiv.org/pdf/2307.02074v3.pdf)  shows that LP returns on CoW AMM would have been equal to or greater than returns on Uniswap in 10 of the 11 most liquid, non-stablecoin pairs.

## Why is CoW DAO launching CoW AMM?

Launching CoW AMM is a natural extension of CoW DAO’s mission to protect Ethereum users from MEV. With two successful products (MEV Blocker and CoW Protocol) aimed at traders, the time is right to extend MEV protection to liquidity providers.

LVR is a large problem, estimated to be responsible for over $500M in value lost to MEV bots every year — more than all trading-related forms of MEV combined.

CoW DAO is uniquely capable of bringing an FM-AMM design to market, as it relies on a surplus-capturing solver network to balance liquidity pools. CoW Protocol currently runs the largest solver competition on Ethereum, with 19 active solvers.

**Find out more about CoW AMM here:** [**cow.fi/cow-amm**](http://cow.fi/cow-amm)

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The novel AMM design protects liquidity providers from MEV bots by eliminating LVR (loss-versus-rebalancing), which costs LPs more than $500M every year


CoW DAO launches the first MEV-capturing AMM

On CoW Protocol, rather than sending on-chain transactions with predefined swap instructions, users submit signed  [intent-to-trade messages](/learn/cow-protocol-glossary#:~:text=Intent%20to%20Trade). These messages contain some order details, like which assets to trade in which amounts, but leave other details to be optimized by  [solvers](https://docs.cow.fi/cow-protocol/tutorials/solvers).

One important parameter of these intents is min_out — the minimum amount of buy tokens a user is willing to receive for their sell tokens (or the buy amount, minus the maximum allowable slippage set by the user). Min_out works really well when a trade is intended for immediate or near-immediate execution, because it allows solvers to improve prices for users while protecting them from unfavorable price movements. However, when prices fluctuate a lot, min_out can be overly-restricting.

## **What is delayed execution trading?**

Simply put, delayed execution trades are trades intended to execute at some point far in the near future.

Many smart contract wallet users, such as DAOs, frequently need to create these types of orders. Take the following examples:

-   DAOs that need trades to execute after passing a governance process
-   Groups that need hours to collect signatures to execute trades from a multisig wallet
-   Applications that process automated swaps years in the future (e.g. for payroll or treasury management)

With extra time, prices can fluctuate wildly — and this creates a dilemma for traders:

If the buy token price falls and the min_out is too high, the order might not execute. But if the min_out is too low, the trader risks getting an unnecessarily poor execution price. (CoW Protocol solvers compete against each other to give users better prices, but placing such a high level of trust in solvers can be undesirable for very high-volume traders.)

![1-what-is-milkman.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/1_what_is_milkman_0518ebe1f4.webp)

If a user signs an intent to swap 1 ETH for a “min out” of 2000 USDC, there is no way for the trade to return any less than 2000 USDC

![2-what-is-milkman.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/2_what_is_milkman_08ab1cbaac.webp)

But setting a low “min out” risks leaving money on the table

## **What is Milkman?**

Milkman is a smart contract that solves the above dilemma for smart contract wallets.

It does this by allowing smart contracts to specify an on-chain data source (such as an oracle) to use as a reference for min_out — effectively turning min_out into a dynamic price backstop for their trade.

Let’s say you want to sell 1000 ETH for USDC, but you want to do it far in the future. To protect yourself from volatile price movements, you can supply Milkman to create the order based on with the Chainlink price feed for ETH/USDC, and Milkman at the time of order placement will dynamically adjust the minimum amount you’ll receive based on that price feed.

When the time comes to execute your trade, CoW Protocol will receive it with a min_out that accurately reflects prices at that point in time; and solvers will compete to improve the price on top of that, as they always do.

![3-what-is-milkman.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/3_what_is_milkman_7f4ab32979.webp)

## **Milkman for DAOs**

Milkman is particularly well-suited to many DAO-related use cases, because DAO governance processes often delay trades and because amounts traded by DAOs can be very large.

Several well-known DAOs, including  [Aave](/learn/aave-trade-breakdown)  and  [ENS](/learn/ens-trade-breakdown), have already used Milkman to trade over $20M worth of tokens. Beyond allowing these DAOs to count on reliable prices, Milkman lets them reduce their overall number of governance votes and gives them standard CoW Swap benefits like best price execution and  [best-in-class](https://eigenphi.substack.com/p/sandwich-mevs-impact-on-cow-swap)  MEV protection — critical for large trades.

Milkman is also natively integrated as a  [recipe on Tally](/learn/tally-recipe-for-cow-swaps), the widely-used DAO management platform — removing even more trading friction for DAOs.

## **Technical details**

Milkman follows a UniV2-style interface. To interact with Milkman, smart contracts need only to call the following function:

> _function requestSwapExactTokensForTokens(_
> 
> _uint256 amountIn,_
> 
> _IERC20 fromToken,_
> 
> _IERC20 toToken,_
> 
> _address to,_
> 
> _address priceChecker,_
> 
> _bytes calldata priceCheckerData_
> 
> _)_

The priceChecker is the data feed provider, and priceCheckerData is an array of arbitrary bytes that the function passes to the price checker (e.g. the desired slippage tolerance).

Price checkers have been deployed for Chainlink, Curve, SushiSwap, Uniswap V2, Uniswap V3, and combinations of these. The core Milkman code can be found  [here](https://github.com/cowdao-grants/milkman). Anyone can run a  Milkman bot, which simply functions as a hook that watches for new swap requests and surfaces them to CoW Protocol. Running a bot is fairly easy if you have a Kubernetes cluster; the instructions are in the repo.

Milkman was developed by  [Yearn Finance](https://yearn.fi/)  in partnership with CoW Protocol, through the  [CoW Grants Program](https://grants.cow.fi/).

Long live Milkman! And may you benefit from his commitment to bringing you favorable prices!

![4-what-is-milkman.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/4_what_is_milkman_185027226b.webp)


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Milkman is a simple contract that lets DAOs and other smart contract wallet users set dynamic price backstops for orders that will execute in the future!


What is Milkman? CoW Swap’s Solution for Delayed Execution Trading

As a pioneer in the field of intents, CoW Swap has consistently brought faster, easier, and safer trading to DAOs and DeFi enthusiasts.

As DeFi grows and transactions become ever-more complex, the friction of having to sign and make orders manually becomes more pronounced. Traders looking to place recurring orders as a part of a complex trading strategy, DAO operators responsible for managing a treasury, and individuals tired of signing repetitive transactions could all benefit from a system that allows for automated order placement.

Today, CoW Protocol is proud to announce the release of two features that take the pain out of order placement and open up a wide range of possibilities for automation.

To start off, we’re introducing a new order primitive to the world of DeFi. We call it “Programmatic Orders”. Programmatic Orders are orders that create more orders. They require just one signature to create, then execute when on-chain conditions (prices, volumes, balances, times, etc.) are met. Programmatic Orders can execute indefinitely into the future, automating everything from complex trading strategies to advanced order types, portfolio management, DAO operations, and more.

Alongside Programmatic Orders, CoW Protocol is launching the Programmatic Order Framework. As the name implies, it’s a framework that allows for the easy creation of Programmatic Orders.

Below, we take a deeper look at Programmatic Orders, the Programmatic Order Framework, and the technical details necessary for implementation. We also call on the DeFi ecosystem to submit proposals for building applications on top of the Programmatic Order Framework through the  [CoW Grants Program](https://grants.cow.fi/).

## The current state of programmatic actions

The DeFi space currently supports very simple programmatic actions — for example, individual limit orders. Unfortunately, users have to trust a centralized operator to execute these actions correctly and fairly.

Despite the rise of autonomous agents in the wake of initiatives like ERC-1271, the vast majority of interactions are performed manually, which means there is a dependency on individuals, and a central point of failure.

Even when orders are executed properly, users still have to sign a transaction every time they want to place a new order. This may not be an issue for one-off transactions, but it starts to become a nuisance for frequent, recurring transactions.

The Programmatic Order Framework is built to address these problems.

## The Programmatic Order Framework: A decentralized solution for automated orders

At its core, the Programmatic Order Framework brings simplicity to order creation by automating the boilerplate code necessary for order placement. This allows DeFi users to programmatically create any set of orders and automatically approve them for execution with just a single signature.

Users can create advanced order types (such as Stop Loss and TWAP orders), automate DAO payrolls, and create or destroy multiple orders with just one on-chain transaction. Thanks to a “WatchTower” relayer, orders built with the Programmatic Order Framework execute automatically whenever certain on-chain conditions are met, eliminating the need for tedious and repetitive signatures for programmatic actions.

The framework is a plug-and-play system that takes in order logic and executes orders in perpetuity based on on-chain conditions. Creating orders only requires coding the order logic itself. The rest of the swap components like order creation, order validation, signature validation, API calls, order placement, and order settlement are provided by the framework itself.

![1-programmatic-order-framework.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/1_programmatic_order_framework_5ee644e722.webp)

The key unlock of the Programmatic Order Framework is the low cost of deploying, updating, and deleting orders in large quantities. Developers only need to write code specifying the particular type of order they’d like to execute and the framework takes care of everything else — storing the data, validating parameters, and placing orders.

The WatchTower relayer verifies that order conditions are met, validates the order signature, and places the order on behalf of the user’s smart contract. To make deploying Programmatic Orders easy, CoW Protocol runs a default WatchTower that users can route orders through. However, users can also run their own WatchTower instance for maximum privacy.

## The all-in-one order automation kit

With the Programmatic Order Framework, a single signature can create hundreds of Programmatic Orders. The WatchTower monitors on-chain order conditions continuously and places orders whenever these conditions are met.

For example, a DAO with a diverse treasury can set up conditional orders for each token within its treasury. Based on these conditions, the framework may initiate a swap to rotate into stables when the treasury value rises above a certain threshold, or it may initiate a payout for DAO contractors on a given day of the month.

As the treasury receives various tokens, the framework executes trades accordingly, making DAO financial operations simple and automatic.

## Benefits of the Programmatic Order Framework

The Programmatic Order Framework unlocks a world of convenience for individuals and on-chain organizations:

-   **Leverage on-chain conditions**: Build highly complex use-cases that rely on custom conditional order logic through the Programmatic Order Framework. Create orders that get picked up by the WatchTower on a certain date, once the balance of your contract or wallet is above a defined threshold, or based on other on-chain conditions
-   **Deploy orders en masse**: Create hundreds or even thousands of orders with a single on-chain transaction. Developers can also mass-update orders all at once with a single gas payment by simply updating the Merkle root with another transaction
-   **Execute many orders in parallel**: In a traditional smart contract wallet, orders execute sequentially. With the Programmatic Order Framework, the WatchTower monitors your orders and executes them as soon as the on-chain conditions are met, meaning you can execute many orders simultaneously

Most importantly, the framework is  **fully decentralized**, providing 100% trustless execution with no intermediate contracts or centralized parties.

## Examples & use-cases

With the Programmatic Order Framework, you can program a limitless number of use-cases:

-   **Special order types**: Gone are the days of centralized exchanges offering order types you can’t get in DeFi. Program intricate order types like stop-loss, good-after-time, and take-profit orders — plus many more. CoW Swap’s very own  [TWAP feature](https://blog.cow.fi/why-twap-25d9a0f690f4)  is built using the Programmatic Order Framework
-   **Automated DAO operations**: Blockchain-native organizations like DAOs process hundreds or even thousands of transactions every month. Thanks to the Programmatic Order Framework, your DAO can automate payroll, treasury diversification, fee collection, or any other type of repetitive transaction
-   **Portfolio rebalancing**: Set up order logic to programmatically rebalance assets based on a portfolio value. Automatically diversify based on market conditions or use custom logic to manage loan risk, farm yield, or hedge positions
-   **Private conditional orders**:  Thanks to the framework’s support for private WatchTower configurations, traders can place highly complex conditional orders while simultaneously keeping them private. Buy and sell tokens through a recurring strategy while keeping your parameters hidden
-   **Protocol integrations**: The Programmatic Order Framework isn’t  _just_  for Safe! DeFi protocols can leverage its power to assist with recurring protocol-level transactions like loan liquidations
-   **Easy transaction modules**: Program custom functionality into any order type. Companies can build DAO tooling with a fraction of the complexity. Focus on building adoption rather than fiddling with backend tech

With just a few lines of code, the Programmatic Order Framework brings convenience and predictability to all types of DeFi actions.

## What will you build, anon?

CoW Protocol is bringing Programmatic Orders to Ethereum through the Programmatic Order Framework. Create any order type you can imagine and deploy it instantly — all within the security of your own smart contract wallet.

The  [CoW Grants Program](https://grants.cow.fi/)  is also putting out a request for proposals relating to the Programmatic Order Framework. Have an idea for a solution built on top of the framework (especially one that includes a UI)? Submit a grant proposal!

The Programmatic Order Framework is now live. Read the documentation  [here](https://hackmd.io/pmZX_qT2Q1yw59KiiT6TPQ)  to get started.

Have questions? The CoW Protocol team is here to help: join us on  [Discord](https://discord.com/invite/cowprotocol)  or send us a  [Twitter DM](https://twitter.com/CoWSwap).

## About CoW DAO

CoW DAO is an open organization of developers, traders, market makers and many more community members aligned with its vision. CoW DAO is focused on fair and decentralized trading systems — in particular, building, maintaining and advancing the CoW Protocol. CoW Protocol technology powers a network of traders and solvers, enabling trustless and efficient peer-to-peer trading. Leveraging batch auctions as a key concept uniquely positions CoW Protocol as native trading infrastructure for discrete-time settlement layers like Ethereum and enables fair and accessible trading to its users.

🐦 [Twitter](https://twitter.com/CoWSwap)| 📒 [Documentation](https://docs.cow.fi/)| 💬  [Forum](https://forum.cow.fi/)  | 📊  [Analytics](https://dune.com/cowprotocol)  | 📸 [Snapshot](https://snapshot.org/#/cow.eth)

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Programmatic Orders enable a world of possibilities in DeFi; they’re now easier to create than ever thanks to CoW Protocol’s Programmatic Order Framework

Introducing the Programmatic Order Framework, from CoW Protocol

The CoW Swap team is excited to release a simpler trading experience for its users. Gasless approvals allow traders to swap over 150 tokens completely gaslessly through CoW Swap.

Before the launch of gasless approvals, CoW Swap users benefitted from gasless trading thanks to CoW Swap’s  [intent-based](/learn/cow-protocol-glossary#:~:text=Intent%20to%20Trade)  execution model. However, they still needed to pay gas fees (in ETH) to execute approval transactions the first time they wanted to trade any token.

With gasless approvals, CoW Swap now allows users to sign a message (gas free!) that gives  [solvers](https://docs.cow.fi/solvers/solvers)  permission to execute the approval transaction on their behalf. Solvers then bundle the approval transaction with the first swap, and users pay fees in the sell token.

The result? Users can now do an entire swap, even for a new token, without spending a gwei in ETH, or even holding any ETH in their wallet at all. That’s a smoooooother (and cheaper) user experience. Moo-gnificent!

## Benefits of gasless approvals

This new upgrade comes with a host of benefits relevant to EOA and multisig wallets alike.

-   **Fully ETH-less swaps:** New users and fresh wallets can complete swaps end-to-end without needing ETH — that’s especially nice for airdrop farmers and privacy seekers
-   **Faster trades**: CoW Swap users don’t have to wait for an approval transaction to execute before the swap — traders can now swap right away, even with tokens they haven’t traded before
-   **Bundling efficiency**: Approval transactions execute alongside orders, in the same block — shielded from fluctuating gas prices, for a more cost-efficient experience overall
-   **Enhanced security**: Only an approved spender can execute transactions on behalf of a trader — users can trust that CoW Swap is as secure as ever

## Gasless approvals under the hood

Gasless approvals rely on  [ERC-2612: Permit Extension for EIP-20 Signed Approvals](https://eips.ethereum.org/EIPS/eip-2612).

Essentially, a function creates a signature that can call approvals directly on behalf of the owner. This allows a third party, such as a solver, to spend funds on behalf of the user. For security, gasless approvals rely on nonces which indicate the number of times a permit signature has been used. (There is also a time window in which the signature must be used.) This protects users from replay attacks because it is impossible to replicate an approval with the same nonce.

Each Ethereum transaction has a minimum fixed transaction cost associated with it. When executing transactions individually, this cost is usually higher per action than if users bundle multiple transactions together. So, in addition to creating a better user experience for traders, gasless approvals also lower the overall cost of trading on CoW Swap.

## Now live on CoW Swap

Gasless approvals are now live on  [CoW Swap](https://swap.cow.fi/#/1)  for Ethereum Mainnet. See which tokens are currently supported by checking out the  [CoW Swap Permittable Tokens List](https://hackmd.io/@mastercow/cowswap-gasless-approvals).

As always, on CoW Swap:

-   Orders are free to place and cancel
-   Traders never pay for failed transactions
-   Fees that cover settlement costs are paid in traders’ sell tokens
-   Traders are fully protected from MEV

Happy trading!

## About CoW DAO

CoW DAO is an open organization of developers, traders, market makers and many more community members aligned with its vision. CoW DAO is focused on fair and decentralized trading systems — in particular, building, maintaining and advancing the CoW Protocol. CoW Protocol technology powers a network of traders and solvers, enabling trustless and efficient peer-to-peer trading. Leveraging batch auctions as a key concept uniquely positions CoW Protocol as native trading infrastructure for discrete-time settlement layers like Ethereum and enables fair and accessible trading to its users.

🐦 [Twitter](https://twitter.com/CoWSwap)| 📒 [Documentation](https://docs.cow.fi/)| 💬  [Forum](https://forum.cow.fi/)  | 📊  [Analytics](https://dune.com/cowprotocol)  | 📸 [Snapshot](https://snapshot.org/#/cow.eth)

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Announcing Gasless Approvals on CoW Swap


CoW DAO is an open organization of developers, traders, market makers, and various community members aligned with the vision of providing traders with the best prices and comprehensive MEV protection. CoW DAO is focused on building and maintaining CoW Protocol, a fair and decentralized trading system, and MEV Blocker, an RPC endpoint. CoW Protocol’s technology powers a network of traders and solvers, enabling trustless and efficient peer-to-peer trading through a unique “batch auction” system. This positions CoW Protocol as native trading infrastructure for discrete-time settlement layers like Ethereum. MEV Blocker is designed to protect transactions from MEV attacks such as front-running and sandwiching. In addition to protecting trades from harmful MEV, MEV Blocker leverages an Order Flow Auction between various searchers and builders to offer rebates to users for certain trades.

[oSnap](https://uma.xyz/osnap)  is a DAO governance tool built and secured by  [UMA](https://uma.xyz/). It allows communities to vote off-chain and automatically execute the successful proposals on-chain. oSnap automatically integrates with the DAO’s  [Snapshot](https://snapshot.org/#/)  space and the Safe wallet holding the DAO’s treasury funds. Transactions approved by the community are validated on-chain and executed without the need for centralized multisig approval.

CoW DAO is looking forward to integrating oSnap, as it will give the DAO several advantages including:

-   A decentralized process to execute successful proposals that no longer requires the involvement of multisig signers → Instead of having the multisig owners push successful proposals on-chain themselves, the oSnap bot will automatically execute them
-   Extra on-chain guarantees through a challenge period → Through oSnap, voters will be able to challenge proposals during a “challenge period” that takes place after the successful passing of a proposal
-   One step closer to a more decentralized and resilient CoW DAO → Integrating oSnap allows CoW DAO to run 100% through on-chain governance without relying on any off-chain infrastructure or trusted parties

## How it works

On a technical level, Snapshot allows users to integrate transaction data into their proposals using its transaction builder tool. Community members can include specific transactions in their proposals for the DAO to execute. Once a proposal is published, Snapshot uses the decentralized hosting service IPFS to store and share this transaction data, assigning it a unique identifier in the process.

Once a proposal is approved, the oSnap system takes charge of submitting the transaction data to UMA’s optimistic oracle. The oracle then verifies that the transaction matches the data stored at the IPFS identifier. If the oracle confirms the match, the transaction is executed using funds from the DAO Safe. However, in the event of an invalid or malicious transaction, the system automatically removes the data before it reaches the blockchain.

This integration is a step forward for CoW DAO’s decentralization. If you are interested in participating in the CoW DAO governance process, you have several options:

-   [Forum](https://forum.cow.fi/)  → CoW DAO’s forum is the main venue for governance-related discussion. Signing up for the forum allows community members to post and participate in discussions.
-   [Snapshot](https://snapshot.org/#/cow.eth)  → CoW DAO’s Snapshot space is a simple voting interface that allows users to vote on proposals. Votes on Snapshot are weighted by the number of vCOW+COW held or delegated to the address used to vote.
-   [Discord](https://discord.gg/cowprotocol)  → The CoW DAO Discord server is currently the main discussion hub for the CoW community and an informal place for governance discussions. The “governance-discussion” channel is where governance matters and proposals are discussed.

## Learn more

[CoW DAO](https://cow.fi/)  is a decentralized organization maintaining CoW Protocol and  [MEV Blocker](https://mevblocker.io/)  for the effective protection of Ethereum traders across DeFi. CoW Protocol leverages batch auctions to find the best prices for user trades, while MEV Blocker maintains a decentralized network of searchers & builders who protect users from MEV and provide them with rebates from profitable backrunning opportunities.

[oSnap](https://uma.xyz/osnap)  is a governance tool secured by UMA and audited by Open Zeppelin. It is free to use and can be integrated in less than 60 seconds.

[UMA](https://uma.xyz/)  is an optimistic oracle that can validate any independently verifiable data on the blockchain. UMA ensures protocol security by incentivizing validators to identify and delete false information passing through the oracle. Since launching in 2020, UMA has secured more than 10,000 critical data assertions. It has never been corrupted.

## About CoW DAO

CoW DAO is an open organization of developers, traders, market makers and many more community members aligned with its vision. CoW DAO is focused on fair and decentralized trading systems — in particular, building, maintaining and advancing the CoW Protocol. CoW Protocol technology powers a network of traders and solvers, enabling trustless and efficient peer-to-peer trading. Leveraging batch auctions as a key concept uniquely positions CoW Protocol as native trading infrastructure for discrete-time settlement layers like Ethereum and enables fair and accessible trading to its users.

🐦 [Twitter](https://twitter.com/CoWSwap)| 📒 [Documentation](https://docs.cow.fi/)| 💬  [Forum](https://forum.cow.fi/)  | 📊  [Analytics](https://dune.com/cowprotocol)  | 📸 [Snapshot](https://snapshot.org/#/cow.eth)

[](https://blog.cow.fi/?source=post_page-----42b8f6c42660--------------------------------)

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CoW DAO has integrated oSnap as a means of directly executing the results of future Snapshot votes on-chain. This integration eliminates the need for multi-signature wallets, creating a more decentralized and efficient execution process.

CoW DAO integrates oSnap for decentralized governance

To celebrate the  [recent launch of TWAP orders](https://blog.cow.fi/cow-swap-launches-twap-orders-d5583135b472), the CoW team is running a trading raffle with several prizes up for grabs. To enter,  **all you have to do is make at least one TWAP trade during the month of September (TWAP-tember)**!

At the end of the month, the CoW team will select one Safe address to receive the grand prize:

> **_🏆 FREE CoW Swap orders for the month of October (aka, Up-tober_**_📈_**_)*_**

That’s right, Swap for free all month long… how’s that for greener pastures?

But we’re not done milking the fun, while only one lucky winner will receive the grand prize, there’s still more up for grabs:

-   **⌚5 people**  will receive CoW Swap-branded watches, to help time your trades
-   **💳 10 people**  will receive custom CoW Swap-branded  [Gnosis Pay](https://gnosispay.com/)  cards

Keep in mind, Ethereum mainnet TWAPs start at a minimum of $5k per part, but you can  [TWAP on Gnosis Chain](https://swap.cow.fi/#/100/advanced/WETH?utm_campaign=twap-tember-medium)  with only $5 per part! **In fact, TWAPs on Gnosis Chain have lower fees (thanks to lower gas costs) and lower $$ minimums than mainnet** (which should also come in handy for Safe deployment).

So what are you waiting for anon? Grab your  [Safe](https://safe.global/)  wallet and head over to  [CoW Swap](https://swap.cow.fi/#/1/advanced/WETH?utm_campaign=twap-tember-medium)  to get your TWAP on. If you’re new to TWAP, we’ve created a handy  [how-to guide](https://blog.cow.fi/how-to-use-cow-swaps-twap-orders-via-safe-wallet-1a0854484dfb)  to help you with your first trade.

## 🐮 Let TWAP-tember begin! 🐮

Visit  [CoW Swap today to TWAP](https://swap.cow.fi/#/1/advanced/WETH?utm_campaign=twap-tember-medium)  your way to the top.

The winning addresses will be announced on the  [CoW Swap Twitter](https://twitter.com/CoWSwap)  so keep an eye on it for instructions on how the winners can claim their physical prizes!

_Terms & Conditions: To receive waived fees, orders must take place between the 1st and 31st of October, 2023. A maximum of $5000 in fees will be refunded._

**———————————————————————**

**UPDATE:**  The winners of TWAP-tember have been announced!

**Grand Prize Winner:** 0x4cb5eE1ad8Bf1B9d75422f9aD086Da2F84BD91B4

**Winners of the CoW-branded Watch & Gnosis Pay Card:**

1.  0xef5e42549886b9b060ee0381a3819ecaf0fdaeda
2.  0x38fe3792cea65f37cac5474dca8fff887e6d90b1
3.  0x2a4e4ab5e6680b76e00ad4555e39d2dcca42a659
4.  0x23a02d9e5d6ad9419128663976315689204be895
5.  0xf4a82a72faf46b2c55cdad3bcf7c0c1b564bab30

**Winners of just the Gnosis Pay Card**:

1.  0x3bc0cb287f74504347d50fe3ada6d90214e6f512
2.  0x952656cb0121d79a320bb0a7188fb4abb2b5dd94
3.  0x2855159d938d09d00d4fccf42f69ccb8f5b620e2
4.  0xdb72b7dc6ddf0c95468ce19b6539b9a44e561679
5.  0x3e23fd468f65e77aea8f548ebd382e86e7a99309

Congratulations to the winners and thank you to everyone who participated!

To claim your prize, please  [DM us on Twitter](https://twitter.com/CoWSwap)  by November 1st.

## About CoW DAO

CoW DAO is an open organization of developers, traders, market makers and many more community members aligned with its vision. CoW DAO is focused on fair and decentralized trading systems — in particular, building, maintaining and advancing the CoW Protocol. CoW Protocol technology powers a network of traders and solvers, enabling trustless and efficient peer-to-peer trading. Leveraging batch auctions as a key concept uniquely positions CoW Protocol as native trading infrastructure for discrete-time settlement layers like Ethereum and enables fair and accessible trading to its users.

🐦 [Twitter](https://twitter.com/CoWSwap)| 📒 [Documentation](https://docs.cow.fi/)| 💬  [Forum](https://forum.cow.fi/)  | 📊  [Analytics](https://dune.com/cowprotocol)  | 📸 [Snapshot](https://snapshot.org/#/cow.eth)

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Attention all traders, the CoW Swap herd is thrilled to announce TWAP-tember, the greatest trading extravaganza of the year!


Introducing TWAP-tember

TWAP orders allow traders to spread their trade over a specified period of time in order to smooth out fluctuations in market price and open a position for an average market price. A TWAP order consists of multiple smaller orders placed at regular intervals over a predefined time period.

> **In our tests, selling 1,000 ETH in four parts of 250 ETH each, allowed us to yield a price for the order that was 3.5% better than selling the 1,000 ETH all at once!**

## TWAP Order Interface

To get started with TWAP orders through the  [Safe](https://app.safe.global/)  app, you will first need to authorise a transaction signing request that contains a batch of transactions (we’re big fans of gas savings through batching ⛽🚫). This batch includes a “setFallbackHandler’’ function. TWAP orders are the first order type that runs on a new conditional order framework, super-charging your Safe.

In order for this framework to make complex trades on your behalf, an upgrade to Safe’s “fallback  handler” is required. Don’t worry though, you will be automatically prompted to upgrade in order to use TWAP.

![1-twap.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/1_twap_9fef6b1d70.webp)


The TWAP interface has several sections:

-   **Trading Assets**: Select the assets you want to swap and the amounts of each.
-   **Price Protection**: Provides protection against major price movements. Your TWAP order won’t execute if the market price dips more than this percentage (calculated from the asset price at the time of order submission).
-   **Number of parts**: Enter the number of parts you would like your order split into.
-   **Total Duration**: The total amount of time your order will take to execute.
-   **Part Duration**: Automatically calculated from your total duration and number of parts, part duration shows how long CoW Swap will wait between each part of your order.
-   **Sell & Buy per part**: Shows an estimate of how much CoW Swap will sell and buy with each part of your trade.

## Benefits of TWAP Orders

TWAP orders have been widely explored through research literature in traditional finance but haven’t yet seen the light of day in DeFi. They’re finally entering use on exchanges such as CoW Swap and they provide a range of benefits for traders.

**Reduce your slippage**: Breaking up a large order into smaller pieces allows you to set a smaller slippage tolerance for each piece than if you had executed the large order as one.

**Reduce your price impact**: As with slippage, breaking up a large order into small pieces allows you to spread your liquidity needs over time, reducing your price impact.

**Always receive 100% of your order surplus**: On CoW Swap, all order surplus is forwarded to you. If your order executes for a better price than your quoted price — thanks to  [Coincidence of Wants](https://blog.cow.fi/what-are-cows-on-cow-swap-e72baaa4678a)  or any other price improvement that solvers are able to find — the extra price improvement will be forwarded to you.

**Eliminate market fluctuations**: By giving traders the time-weighted average price, TWAP orders smooth out market volatility, which makes trying to predict prices a thing of the past.

**Customise your order parameters**: TWAP orders allow you to fine-tune your order by specifying the number of parts you’d like it split up into, as well as the time period you want it to execute over. On CoW Swap, TWAP orders also have a “price protection” option which protects your order from executing at an unfavorable price due to market volatility.

## Get Started with TWAP Orders on CoW Swap

TWAP orders are now available in the  [CoW Swap order interface](https://swap.cow.fi/#/1/advanced)  under the “Advanced” tab.

**Have a Safe?**  Awesome! You can try out TWAP  [here](https://swap.cow.fi/#/swap?utm_source=medium&utm_campaign=TWAP-announcement).

**Don’t have a Safe?**  Not a problem! Create one  [here](https://app.safe.global/share/safe-app?appUrl=https%3A%2F%2Fswap.cow.fi&chain=eth).

The CoW Swap team is working on adding support for more wallets in the future.

One more thing to note: TWAP orders are most useful for big trades! So, when trading on Mainnet, the  _minimum_  TWAP order size is $5k. This minimum ensures that your savings from reduced price impact are not lost on execution fees (AKA gas fees). If you want to trade smaller amounts, head over to Gnosis Chain, where the TWAP order minimum is only $5 (and the gas fees are much cheaper!)

As always, on CoW Swap:

-   All prices are aggregated from the best available on-chain and off-chain liquidity.
-   Traders are fully protected from MEV.
-   Orders are free to place and free to cancel.
-   Traders never pay for failed transactions.
-   Transactions are gasless as fees are paid in the sell token.

Celebrating ComposableCoW’s conditional order superpowers, we are releasing it with TWAP (time-weighted average price) order support for enabled-Safe users.

Give  [TWAP orders a try](https://swap.cow.fi/#/swap?utm_source=medium&utm_campaign=TWAP-announcement)  today and let us know what you think by reaching out on  [Twitter](https://twitter.com/CoWSwap)  or  [Discord](https://discord.com/invite/cowprotocol)!

![2-twap.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/2_twap_2220db98f0.webp)

We wish you much surplus and happy TWAP order trading! Give  [TWAP orders a try](https://swap.cow.fi/#/swap?utm_source=medium&utm_campaign=TWAP-announcement)  today and let us know what you think by reaching out on  [Twitter](https://twitter.com/CoWSwap)  or  [Discord](https://discord.com/invite/cowprotocol)!

_Please note that TWAP orders currently require a_ [_Safe_](https://safe.global/) _wallet with a fallback handler. More wallets will be supported in the future._

## About CoW DAO

CoW DAO is an open organization of developers, traders, market makers and many more community members aligned with its vision. CoW DAO is focused on fair and decentralized trading systems — in particular, building, maintaining and advancing the CoW Protocol. CoW Protocol technology powers a network of traders and solvers, enabling trustless and efficient peer-to-peer trading. Leveraging batch auctions as a key concept uniquely positions CoW Protocol as native trading infrastructure for discrete-time settlement layers like Ethereum and enables fair and accessible trading to its users.

🐦 [Twitter](https://twitter.com/CoWSwap)| 📒 [Documentation](https://docs.cow.fi/)| 💬  [Forum](https://forum.cow.fi/)  | 📊  [Analytics](https://dune.com/cowprotocol)  | 📸 [Snapshot](https://snapshot.org/#/cow.eth)

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CoW Swap is excited to announce the launch of Time-Weighted Average Price (TWAP) orders! Available now as an advanced order type in the CoW Swap order interface.


CoW Swap Launches TWAP Orders

Surplus notifications are now live on CoW Swap! Just navigate to your account page to see the total amount of price surplus CoW Swap has generated across all your trades.

Surplus notifications will also pop up after each trade, showing you how much extra you’ve earned for that trade!

![announcing-cow-swap-surplus-notifications-cover-photo.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/announcing_cow_swap_surplus_notifications_cover_photo_dbb7d409c9.webp)

## What is Surplus?

On CoW Swap, we call any improvement over your quoted price “surplus”.

-   **Positive Slippage**: Sometimes the market moves to your advantage and the asset you’re trading becomes cheaper between the time you’re quoted and the time of execution. On CoW Swap, that price savings is passed on to you
-   **Coincidence of Wants (CoWs)**: If your order is matched peer-to-peer with someone else, you save on gas costs and LP fees. That price surplus is also passed along to you
-   **Any other price improvement**: If the solvers can find a better source of liquidity than they originally quoted, or improve the price in any other way, this price improvement is forwarded to you.

## CoW Swap Passes Along the Most Surplus

CoW Swap is the only exchange that passes along all types of price improvements. Positive slippage, gas savings, and other optimizations usually end up in the protocol treasury for most DEXs and DEX aggregators. At CoW, we put our users first, so you can rest assured that if we find a better price, it’ll be you we tell first.

## About CoW DAO

CoW DAO is an open organization of developers, traders, market makers and many more community members aligned with its vision. CoW DAO is focused on fair and decentralized trading systems — in particular, building, maintaining and advancing the CoW Protocol. CoW Protocol technology powers a network of traders and solvers, enabling trustless and efficient peer-to-peer trading. Leveraging batch auctions as a key concept uniquely positions CoW Protocol as native trading infrastructure for discrete-time settlement layers like Ethereum and enables fair and accessible trading to its users.

🐦 [Twitter](https://twitter.com/CoWSwap)| 📒 [Documentation](https://docs.cow.fi/)| 💬  [Forum](https://forum.cow.fi/)  | 📊  [Analytics](https://dune.com/cowprotocol)  | 📸 [Snapshot](https://snapshot.org/#/cow.eth)

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Announcing CoW Swap Surplus Notifications

CoW Protocol is proud to announce the launch of CoW Hooks. You can now implement custom-coded DeFi actions that execute directly before and/or after your trades.  **CoW Hooks can be used to chain together complex actions such as trading, bridging, staking, depositing, and much more.**

The best part?  **CoW Hooks execute your entire sequence as a single transaction and, true to the CoW Protocol model, you pay gas fees in your sell token if, and only if, your transaction succeeds.**

> If you are interested in #BUIDLing, reach out, grants are available for great ideas @  [https://grants.cow.fi/](https://grants.cow.fi/)

## Background

In recent months, the crypto industry has been absorbed in discussions on “intent” messages on Ethereum and the new possibilities that this innovation unlocks.

So far, the only production-ready intents system live on Ethereum is CoW Swap. The rest has only been theory and research papers covering the possibilities of intents. What’s more, these papers frame the user transaction as an “intent” but they don’t usually allow for composability. This is why the CoW Swap model asks the user to sign the trade instead of executing it directly on chain… This allows solvers to optimize the order by composing it with other strategies and optimizations. Composability unlocks the real power of intents, as they are meant to abstract the user away from complex interactions.

CoW Swap has been the leader in the intent space for a while and has built one of the most widely-used intent-based models. On CoW Swap, users delegate their trade execution to a network of solvers that complete the transaction on their behalf. This delegated trading model makes way for composability as solvers can batch trades together, find  [Coincidence of Wants](https://blog.cow.fi/what-are-cows-on-cow-swap-e72baaa4678a)  (CoW) matches, update the trading path at the moment of execution (rather than the moment of creation) and more.

Today, CoW Swap is proud to announce the launch of an overhauled intents system that allows for composability of a wide range of actions before and after a swap.

It’s called CoW Hooks.

## What are CoW Hooks?
![1-cow-hooks.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/1_cow_hooks_801e54dabe.webp)

CoW Hooks are arbitrary Ethereum “calls” that attach to an order and execute before and/or after the order. Developers and advanced traders can use code to express an intent that performs some action before a swap (pre-hooks) and after a swap (post-hooks).

**Pre-hooks**  can be used to “set up” conditions for an order. Examples include executing the code necessary for validating an on-chain signature, or setting the required approvals through an EIP-2612 permit.

**Post-hooks**  execute after a swap takes place and the receiver address receives the funds. Post-hooks provide an opportunity to put the funds to use immediately through staking, liquidity providing, bridging tokens to L2s, and much more.

## How do CoW Hooks work?

CoW Hooks let you do anything you can imagine. You can use whatever you can encode on-chain as a pre or post hook. The only requirement is that your action includes a trade on CoW Swap.

With CoW Hooks, users define:

-   A list of pre-hooks intents
-   The swap intent
-   A list of post-hooks intents

The flexibility of creating CoW Hooks opens up a world of possibilities — all you need to do is encode your actions in the right order for your particular use-case.

### Fresh Address Receives tokens: Permit, Swap & Bridge

Let’s say that you receive USDC and you would like to bridge the funds to another chain. You can use CoW Hooks to execute a token approval, swap, and bridge all at once.

-   **Pre-hooks**: Use a pre-hooks action to approve the token for a swap
-   **Swap**: Use CoW Swap to swap your USDC to the token you would like
-   **Post-hooks**: Send your new tokens to the bridge contract as a post-hook

And just like that, you have received, swapped, and bridged your tokens to a different chain all in one set of transactions. As a bonus, all of your gas fees will be charged in your sell token (USDC in this case,) which means that you can move your received funds without first sending ETH to cover gas costs.

If you are interested in learning more about the code behind this example, we’ve created a walkthrough on how to reproduce this exact set of actions in our CoW Hooks  [documentation](https://docs.cow.fi/overview/cow-hooks), as well as on YouTube:

### Flash Loan payback adapter for CDPs via Stop loss orders

You can also use CoW Hooks to repay debt or manage collateral levels. In this case, your hooks actions might look like this:

-   **Pre-hooks**: Approve the tokens you would like to swap
-   **Swap**: Use CoW Swap to swap for the tokens you need to service your debt
-   **Post-hooks**: Repay your debt and close your position, or use your tokens to add collateral so as to not be undercollateralized

We’ve also put together a walkthrough for how to code this set of hooks, you can view it here:

## Use CoW Hooks for everything

The examples illustrated above are just some of the uses of DeFi assets, but the possible use-cases for CoW Hooks are really endless. Here are some more examples:

-   **Repaying a debt & staking**: You could use CoW Hooks to repay a debt, close a position, swap assets for a yield bearing token, and stake your tokens all-in-one. To do this, you would set your pre-hook action to repaying the debt and closing the position, then you would use CoW Swap to swap your assets, and finally use a post-hook to deposit your new assets into a staking vault.
-   **Opening an LP position**: You can also work with only a pre-hook and a swap or only a post-hook and a swap. For example, if you wanted to open an LP position, you could first swap some assets for ETH, and then use a post-hook for the rest. If you wanted to do this via a CDP, you could deposit your ETH as collateral, borrow stablecoins, swap some stables to the other LP token side, and open a liquidity provider position.
-   **JIT (Just-in-time) smart orders**: Say that you want to leverage the benefits of programmable smart contract wallets to deploy a Safe and also trade via the composable CoW framework (ERC-1271). Using CoW Hooks, you can express the entirety of your transaction sequence at no cost. Connect the deployment of the Safe, execute your custom smart contract approval and swap, and even add on another post-swap action all in one. The entire sequence is conditional on every step being able to execute, otherwise none of it goes through.
-   **NFT sniping & selling:** CoW Hooks also come in useful in the NFT world. You can, for example, sell an NFT and encode a CoW Hooks action to immediately swap those funds for a token of your choice. Or, alternatively, you could place a limit order to purchase crypto at a certain price and then buy an NFT directly after.
-   **Bridging to another chain**: If you want to swap some tokens and bridge them to another chain, you could use CoW Hooks. In your flow, you would first swap your tokens and then send them to a bridge contract in order to combine both the approval and the bridging.
-   **Claiming airdrops**: While they’re not as common as they used to be, airdrops are a core part of many Ethereum projects. You can use CoW Hooks to sell your airdrops without spending any ETH on gas. Simply approve the token in your wallet and add a swap transaction to sell it. Your gas fees will be taken in the sell token, so you can enjoy holding on to your precious ETH.
-   **Unstaking and restaking**: If you’re an Ethereum validator and you want to claim your rewards, you’ll first need to unstake your 32 ETH in order to perform any action with them. With CoW Hooks, you can unstake your ETH, approve and swap to a token of your choice, and then re-stake your new assets somewhere else, all in a single set of encoded transactions.
-   **Automatically growing your LP position:** Let’s say that you’re a liquidity provider for a EUR — USDC pool on Gnosis chain that rewards you in GNO tokens. You can use CoW Hooks to automatically convert your GNO to EUR/USDC in a 50/50 split through CoW Swap and then use each of the assets to increase your LP position.

## What are you going to build with this anon?

The best part about CoW Hooks? They’re fully-featured and already live at the protocol level! So, if you are a developer or an advanced technical user, get your wallets ready and step into a new era in DeFi!

To get started, check out our  [documentation](https://docs.cow.fi/overview/cow-hooks). We’re really excited about all the possibilities with CoW Hooks so if you need help implementing them or have an exciting idea, please reach out on  [Twitter](https://twitter.com/CoWSwap)  or by  [joining CoW Protocol Discord](https://discord.com/invite/cowprotocol).

Happy hooking!

## About CoW DAO

CoW DAO is an open organization of developers, traders, market makers and many more community members aligned with its vision. CoW DAO is focused on fair and decentralized trading systems — in particular, building, maintaining and advancing the CoW Protocol. CoW Protocol technology powers a network of traders and solvers, enabling trustless and efficient peer-to-peer trading. Leveraging batch auctions as a key concept uniquely positions CoW Protocol as native trading infrastructure for discrete-time settlement layers like Ethereum and enables fair and accessible trading to its users.

🐦 [Twitter](https://twitter.com/CoWSwap)| 📒 [Documentation](https://docs.cow.fi/)| 💬  [Forum](https://forum.cow.fi/)  | 📊  [Analytics](https://dune.com/cowprotocol)  | 📸 [Snapshot](https://snapshot.org/#/cow.eth)

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The CoW Protocol intent language just got enhanced through CoW Hooks, making a single intent matching engine into a multi purpose intent execution engine!


CoW Hooks: You are in control!

![1-tally-gif.gif](https://celebrated-gift-f83e5c9419.media.strapiapp.com/1_tally_gif_0192363076.gif)

DAO trading presents a unique set of challenges when compared to retail trading. While small trades can easily access the liquidity necessary to execute quickly and efficiently, DAOs have to go through a complex proposal and voting process to simply initiate a trade. When actually placing the trade, DAOs also have to worry about optimizing liquidity sources, reducing price impact, avoiding MEV, fine-tuning slippage, and much more.

The DAO governance process ensures that all stakeholders get a say, but when it comes to executing trades, it forces DAOs into a difficult choice:

1.  **Announce and commit to the trade in advance to collect votes**: This exposes the trade to significant MEV risk since the DAO makes the exact trade details known in advance… or,
2.  **Elect a treasury management team to execute the trade**: This keeps trade details private, but bypasses the regular governance process and requires trusted third parties

This choice between losing money to MEV or having to delegate treasury decisions leads many DAOs to avoid making trades unless absolutely necessary. This causes more problems since regular trades are necessary for effective treasury diversification.

Today, [CoW Swap](https://cow.fi/)  and [Tally](https://www.tally.xyz/), two of the most trusted names in the DAO space, are putting an end to this tradeoff once and for all.

We’re excited to announce the launch of the Tally Recipe for CoW Swaps: a combined governance & swap mechanism that eliminates the need for precise trade timing and gives DAOs the best of both worlds.

## CoW Swap & Tally Present: The Tally Recipe for CoW Swaps
![2-cow-swap-and-tally-present.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/2_cow_swap_and_tally_present_a1c0a92d1d.webp)

**The Tally Recipe for CoW Swaps relies on** [**Milkman**](https://github.com/charlesndalton/milkman)**, a CoW Grants-funded project developed by contributors from** [**Yearn.fi**](https://yearn.fi/)**, to enable easier DAO trading.**

Milkman is a trading mechanism that uses a real-time price checker instead of a fixed slippage tolerance for executing trades. It has quickly become a critical tool for DAOs, as it encodes a guaranteed price on-chain at the time of the trade execution, rather than during the proposal process. The Milkman smart contract uses a bot that places trades on behalf of the DAO based on the parameters encoded in the DAO’s signed message.

Rather than including a fixed price and slippage tolerance in the governance proposal for an upcoming trade, DAOs can instead use a price checker (such as a Uniswap v3 price oracle) to complete the trade based on whatever the price is at the time of execution (within some slippage deviation).

Previously, DAOs had to run Milkman via scripts and code, but  [CoW Swap](https://cow.fi/)  and [Tally](https://www.tally.xyz/)  have created an easy-to-use operational UI interface for Milkman through the Tally Recipe for CoW Swaps.

## How the Tally Recipe for CoW Swaps Works

The Tally Recipe for CoW Swaps makes DAO trading super simple.

![3-how-the-tally-recipe-works.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/3_how_the_tally_recipe_works_335fcb4e85.webp)

When creating a governance proposal through Tally, DAO managers can add a “swap” action, in which they can specify:

-   The assets that the proposal will trade
-   The price checker that will be used to guarantee that the price at the moment of execution won’t deviate from the market price by more than the specified slippage tolerance
-   The slippage amount that the DAO is willing to accept

Once the governance proposal for the DAO trade passes, the Milkman bot automatically picks up the transaction, checks the signature, and forwards the order to CoW Swap. Thanks to an  [EIP-1271](https://cow-protocol.medium.com/tutorial-creating-smart-orders-on-cow-protocol-683a5f9f4763)  integration, CoW Swap can verify that the attached signature is valid and contains all the necessary trade parameters, even if it comes from a smart contract. The transaction then moves to the CoW orderbook and the solvers compete to find the best price and execution path for the order.

## Tally & CoW Swap for Your DAO

DAOs have lots of options when it comes to governance and treasury management. Tally and CoW Swap are both committed to creating tools for enhancing the DAO trading experience.

### Tally makes DAO governance management a breeze. DAOs can use Tally to:

-   Create a home page for existing members and new visitors
-   Create and manage DAO proposals
-   Allow participants to vote on DAO proposals or delegate their voting power through a personal profile
-   Allow delegates to advocate for receiving more votes by making a profile and showcasing their past voting activity

### CoW Swap offers DAOs:

-   The best prices from all available on-chain liquidity and through peer-to-peer swaps
-   MEV protection through a network of solvers
-   Forwarding of positive price surplus (your quoted price is the worst price you’ll pay)
-   EIP-1271 smart orders that find the best price at the time of execution
-   And  [much more](https://blog.cow.fi/cow-swap-for-daos-8d67831c2a13)

For DAOs large and small, the Tally Recipe for CoW Swaps takes treasury swaps to a whole new level. Enjoy trading with the peace of mind of a retail trader — regardless of how big your trade is.

To use the Tally Recipe for CoW Swaps for your DAO, sign up with Tally through [their website](https://www.tally.xyz/).

Happy trading!

## About CoW DAO

CoW DAO is an open organization of developers, traders, market makers and many more community members aligned with its vision. CoW DAO is focused on fair and decentralized trading systems — in particular, building, maintaining and advancing the CoW Protocol. CoW Protocol technology powers a network of traders and solvers, enabling trustless and efficient peer-to-peer trading. Leveraging batch auctions as a key concept uniquely positions CoW Protocol as native trading infrastructure for discrete-time settlement layers like Ethereum and enables fair and accessible trading to its users.

🐦 [Twitter](https://twitter.com/CoWSwap)| 📒 [Documentation](https://docs.cow.fi/)| 💬  [Forum](https://forum.cow.fi/)  | 📊  [Analytics](https://dune.com/cowprotocol)  | 📸 [Snapshot](https://snapshot.org/#/cow.eth)

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Bring your DAO trades to the next level with governance-initiated swaps

Tally Recipe for CoW Swaps

On April 28th, 2021, CoW Swap was publicly announced and deployed to Ethereum mainnet as a proof of concept to showcase the power behind its underlying mechanism, CoW Protocol.

<blockquote class="twitter-tweet"><p lang="en" dir="ltr">CowSwap is live!<br>👉 <a href="https://t.co/16jaKW2324">https://t.co/16jaKW2324</a><br> <br>Check out how CoWs protect your trades from <a href="https://twitter.com/hashtag/MEV?src=hash&amp;ref_src=twsrc%5Etfw">#MEV</a> and save 90% of gas costs on your trades👇 <a href="https://t.co/FK9NBlLLUn">pic.twitter.com/FK9NBlLLUn</a></p>&mdash; CoW DAO | CoW Swap &amp; MEV Blocker (@CoWSwap) <a href="https://twitter.com/CoWSwap/status/1387392829731770375?ref_src=twsrc%5Etfw">April 28, 2021</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

One year later, we made this post:

<blockquote class="twitter-tweet"><p lang="en" dir="ltr">🐮🎉 Today is CowSwap&#39;s birthday &amp; we would love to celebrate with you!!🐮🎉<br><br>If you trade on CowSwap today, you&#39;ll be able to find a special birthday gift!<a href="https://twitter.com/hashtag/CoWGMI?src=hash&amp;ref_src=twsrc%5Etfw">#CoWGMI</a><br><br>For this amazing year, we put together a nice summary of key moments &amp; stats achieved:<a href="https://t.co/f3RuLdS3Bi">https://t.co/f3RuLdS3Bi</a></p>&mdash; CoW DAO | CoW Swap &amp; MEV Blocker (@CoWSwap) <a href="https://twitter.com/CoWSwap/status/1519682333103861761?ref_src=twsrc%5Etfw">April 28, 2022</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

For many people, this was the first time they heard of the project. Little did they know that with just one swap, it would become their favorite #DEX across Ethereum & Gnosis Chain. CowSwap’s main goal has always been to protect users from MEV attacks (frontrunning, sandwiching and more) through the use of a batch auction settlement layer. Here’s a summary of everything CoW Swap has launched and accomplished so far:

-   **April 28th, 2021 →**  CowSwap is born and rolls out in production, v.1.0
-   **August 13th, 2021 →**  CowSwap moves out of Alpha (Proof of Concept) and launches its upgraded smart contract to tightly integrate with Balancer v2. Composability is the key to Balancer CoW Protocol, where Balancer routes trades directly to CoW Protocol, and CoW Protocol settles trades in Balancer pools more efficiently.
-   **February 4th, 2022 →**  vCOW tokens land on CowSwap, later followed by COW tokens.
-   **February 11th, 2022 →**  CoW DAO is born!
-   **February 17th, 2022 →**  The CoW Investors Guild launches with an astonishing NFT.
-   **March 7th, 2022 →**The First proposal is passed by vCOW token holders, CoW DAO’s participation agreement.
-   **March 29th, 2022 →**  CoWDAO closes a $23M private & CoWmunity investment round. The investment round contains 57 participants from the private round (VCs, Angel Investors, etc) & > 5000 CoWmunity participants.
-   **April 22nd, 2022 →**  CoW-organizes the first mev.day in for Devconnect Amsterdam.
-   **April 28th, 2022 →**  CoW Swap´s 1st birthday.
-   **June 8th, 2022 →**  The CoW Grants program goes live.
-   **July 14th, 2022 →**  CoW Protocols Monthly recaps are born. Subsequently, each month’s news, developments, governance discussions and more are compiled into a newsletter-style article.
-   **September 29th, 2022 →**  CoW Swap´s Token page goes live, users can now mark their favorite tokens and approve them whenever they find convenient, regardless of the actual trading timing.
-   **October 12th, 2022 →**  CoW Protocol team takes over DEVCON VI in Bogota with 4 different talks!!
-   **October 28th, 2022 →**  Data analysis on how much slippage DEX Aggregator users suffer. Do CoWs experience less slippage? Indeed they do :)
-   **November 2nd, 2022 →** CoW Protocol launches support for ERC-1271 signatures. ERC-1271 makes it possible to trade “gas-less-ly” on CoW Protocol with any Smart Contract or Smart Contract wallet.
-   **November 7th, 2022 →**  A new AMM concept is introduced. CoW Native AMMs (aka Surplus Capturing AMMs with single price clearing) protect their LPs from MEV, get less LVR and provide lower fees to traders.
-   **November 16th, 2022 →**  CoW Protocol proudly announces the launch of Seasolver from [@iearnfinance](https://twitter.com/iearnfinance), the leading yield aggregator on Ethereum. This is one of the most novel applications of a solver to date — enabling direct trading of LP positions.
-   **November 22nd, 2022 →**  A partnership with [@ChainPatrol](https://twitter.com/ChainPatrol)  to help identify scammers is launched alongside security portal for users to easily report those F****rs
-   **November 22nd, 2022 →**  Swapr integrates CoW Protocol into its Eco Router.
-   **December 6th, 2022 →** Shapeshift integrates CoW Protocol and routes all orders in Ethereum to the CoWs!!
-   **December 8th, 2022 →**  Significant updates to the CoW Swap UI go live through a new brand refresh :)
-   **December 12th, 2022 →**  The most UN-limited limit orders in DeFi launch. Limit orders from CoW Protocol officially go live
-   **December 19th, 2022 →**  A new contract that allows users to trade directly with ETH or xDAI without having to wrap first launches.
-   **January 6th, 2023 →**  A Smart Order tutorial for users to easily create any sort of financial product through EIP1271 orders launches.
-   **January 25th, 2023 →**  CoW DAO holders approve the hiring of a treasury manager, and retain Karpatkey as the provider for the service..
-   **February 8th, 2023 →** ENS sells $16m worth of ETH (10K) through smart orders without suffering from any MEV, despite revealing their trade intent a week in advance through a DAO vote. A first for DeFi!
-   **February 24th, 2023 →**  With the help of Wherever, CoW Swap launches wallet to wallet notifications, so that users can stay up to date on the latest news.
-   **March 8th, 2023 →**  First implementation of TWAP orders goes live thanks to the CoW Grants program.
-   **March 30th, 2023 →**  CoW Swap launches a new traffic light system to help you understand how close your limit order price is to executing.
-   **April 5th, 2023 →**  CoW Swap, in collaboration with [@beaverbuild](https://twitter.com/beaverbuild)  and Agnostic Relayer, proudly announces MEV Blocker [https://MEVBlocker.io](https://t.co/WIhaaGtP0e). MEV Blocker is a free RPC endpoint that *pays users* to protect themselves from MEV across a wide variety of use cases in DeFi, NFTs, and dApps.
-   **April 17th, 2023 →**  Partially fillable limit orders launch. Enabled by default, partial fills bring faster trade settlement to limit orders.
-   **April 19th, 2023 →**  An API with Zeromev launches that allows users to understand and quantify how much they have lost to MEV. This initiative was funded via the CoW Grants program.

It’s been our honor to share these last two years with the incredible CoWmmunity! Below we’ve included some notable statistics from this period that are worth highlighting.

## Main Protocol Statistics

Total Volume: $23.39 Billion

![1-main-protocol-statistics.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/1_main_protocol_statistics_bc3c675e41.webp)

Total # of Trades: 595,373

![1-1-main-protocol-statistics.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/1_1_main_protocol_statistics_9b61f3c308.webp)

Total # of Users:

![1-2-main-protocol-statistics.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/1_2_main_protocol_statistics_5f263b9c71.webp)

Total number of distinct tokens traded: 3,640 tokens

![1-3-main-protocol-statistics.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/1_3_main_protocol_statistics_ac95679b1f.webp)

Total number of batches settled: 449K

![1-4-main-protocol-statistics.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/1_4_main_protocol_statistics_f0ddc1b685.webp)

Top 25 traded tokens:

![1-5-main-protocol-statistics.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/1_5_main_protocol_statistics_135cd104d4.webp)

Number of currently active solvers:

![1-6-main-protocol-statistics.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/1_6_main_protocol_statistics_e4d423faf8.webp)

## **User Benefits**

Due to the delegated trading model of CoW Swap, users have been able to save a cumulative total of 7K ETH, which is worth $19.5M at current prices!!!

![2-user-benefits.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/2_user_benefits_6f908ce630.webp)

But the savings don’t stop there — not by a long shot… CoW Swap has provided its users with an astonishing $119 million in trade surplus. This is $119 million more than they originally signed up for when submitting their trades!

![2-1-user-benefits.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/2_1_user_benefits_ff60a40b28.webp)

## Top 3 Batch highlights

**[Batch with the largest volume](https://explorer.cow.fi/tx/0x67b9ee6d6d6a96c56ae689c71a588dd1739d98ed4b542b513b7f8896916fd6ee?tab=orders)**

5 different traders selling and buying DAI — USDC, USDC — ICHI, NOTE — DAI, USDC — wNXM and MIM — RDN who all together accounted for a total batch volume of $90,698,916.42, which is an impressive figure!

![3-batch-highlights.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/3_batch_highlights_81a67ec8fe.webp)
![3-1-batch-highlights.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/3_1_batch_highlights_4793fd97bf.webp)

**[Batch with the largest amount of traders](https://barn.explorer.cow.fi/tx/0x0191dbb560e936bd3320d5a505c9c05580a0ebb7e12fe117551ac26e484f295e?tab=orders)**

34 different traders selling and buying ETH — GNO — perfectly batched together to hit the AMM with the best price only once, thus making the 34 trades much more gas cost efficient.

![3-2-batch-highlights.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/3_2_batch_highlights_65f48706b4.webp)
![3-3-batch-highlights.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/3_3_batch_highlights_ce078b6789.webp)

**[Most beautiful CoW](https://explorer.cow.fi/tx/0x4769c7e1bfc28fa2b0648cd450b90c6ae0c73664b9c398a408560cc997981700?tab=orders)**

6 different traders selling and buying USDT — USDT, perfectly matched >$1m against each other with >99% CoW volume (coincidence of wants/ internal matching) generating nice surplus for all

![3-4-batch-highlights.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/3_4_batch_highlights_a190b73ae7.webp)
![3-5-batch-highlights.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/3_5_batch_highlights_483d65732e.webp)

**[Batch with highest surplus](https://explorer.cow.fi/tx/0xdfe24cc3fbf5b15ed356829dc9b756844aa64fdb90bd06ed6c55119b0c7a465d?tab=orders)**

A single trader selling and buying USDC — USDT received a surplus of 4% thanks to CoW Protocol’s batch auction settlement mechanism. In their trade, this translated to around $ 400K

![3-6-batch-highlights.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/3_6_batch_highlights_1ddcdb11c6.webp)
![3-7-batch-highlights.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/3_7_batch_highlights_f2bc0ad9ac.webp)

## Conclusion

We can’t believe you are growing so fast! It seems like it was just yesterday that you came into this world. CoW Swap was born with the goal of becoming the most MEV-resistant DEX. It is the only DEX designed to give you total peace of mind, reducing MEV value extraction as much as possible for you and batching your trades to save you gas and AMM fees. So what are you waiting for? Go trade on swap.cow.fi and help the protocol scale its benefits!

![4-conclusion.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/4_conclusion_3bd7e17b67.webp)

More trades → More CoWs → More protection from MEV → Better prices

May the years ahead continue to amaze everyone with the power of CoWs!!

## About CoW DAO

CoW DAO is an open organization of developers, traders, market makers and many more community members aligned with its vision. CoW DAO is focused on fair and decentralized trading systems — in particular, building, maintaining and advancing the CoW Protocol. CoW Protocol technology powers a network of traders and solvers, enabling trustless and efficient peer-to-peer trading. Leveraging batch auctions as a key concept uniquely positions CoW Protocol as native trading infrastructure for discrete-time settlement layers like Ethereum and enables fair and accessible trading to its users.

🐦 [Twitter](https://twitter.com/CoWSwap)| 📒 [Documentation](https://docs.cow.fi/)| 💬  [Forum](https://forum.cow.fi/)  | 📊  [Analytics](https://dune.com/cowprotocol)  | 📸 [Snapshot](https://snapshot.org/#/cow.eth)

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Holy CoW!! It’s CoW Swap’s birthday 🎂 Happy birthday to moooo, happy birthday to moooo 🎉🎊🥳


CoW Swap’s 2nd birthday celebration!

CoW Swap is excited to announce that partially fillable limit orders are now live.

Partially fillable limit orders, unlike traditional “fill or kill” limit orders, are executed gradually as liquidity becomes available at the specified limit price.  **This means that your limit orders will complete much faster, as they can gather liquidity over time rather than all at once.**

![1-limit-orders.gif](https://celebrated-gift-f83e5c9419.media.strapiapp.com/1_limit_orders_f887eeebcc.gif)

Let’s say you want to place a limit order for $10,000 worth of ETH at a price of $1,500 per ETH. With fill or kill limit orders, this trade would only be executed if CoW Swap can find the entire $10,000 worth of ETH at $1,500 per token. If this liquidity is not available in full, the order would not go through.

With partially fillable limit orders, however, the same trade can be executed in smaller increments over time. For example, if there were only $1,000 worth of liquidity for ETH at a limit price of $1,500 when you first place your order, CoW Swap would execute a trade to capture that $1,000 and also execute subsequent trades that it finds at your limit price until the entire $10,000 order is filled.

Partially fillable limit orders have several benefits:

-   Fast order fills regardless of market conditions
-   Increased chance of CoWs (Coincidences of Wants)
-   Surplus capturing trades

Let’s explore how each benefit improves your trading experience.

### Fast Order Fills Regardless of Market Conditions

The main advantage of partially fillable limit orders is that your trades will execute (at least in part) even during times of low market liquidity.

Fill or kill limit orders can take a long time to execute, since there needs to be enough liquidity available to execute the entirety of your trade at your limit price. This issue is solved with partially fillable limit orders, so you can always expect fast, efficient order completion regardless of market conditions.

### Increased Chance of CoWs

CoW Swap was built on the concept of “Coincidences of Wants” (CoWs) — an economic phenomenon where two or more traders can swap assets with each other peer-to-peer, without needing to use on-chain liquidity. On CoW Swap, orders are processed in batches that make this peer-to-peer matching possible.

Since partially fillable orders fill up over time, rather than all at once, they get more chances to be matched with other orders in a CoW. This, in turn, means that you get reduced gas fees and zero liquidity pool fees.

For example, if you are attempting to make a $10,000 trade, a traditional fill or kill order will be sent to a single batch and only get 1 chance to find a CoW (which may be unlikely for a large order.) With partially fillable orders, your order could participate in all batch auctions and get a chance to find multiple CoWs against a bunch of smaller orders until the order is filled.

### Surplus Capturing Trades

Partially fillable limit orders are “surplus capturing,” meaning that any price surplus your trade experiences will get passed along to you. If you submit a trade at a certain limit price, but it can actually be executed for less, the protocol will make the trade for the lower price and pass the savings on to you.

For example, if you set a limit order for ETH at $1,500, but the protocol sees that there is actually an opportunity to buy ETH for $1,450, it will buy at this price and pass the $50 in “surplus” on to you.

In practice, surplus capturing orders mean that CoW Swap will find enough surplus (price improvements) at the time of execution to cover what will be your fees so that they don’t affect your orders’ limit price.

## Uses for Partially Fillable Limit Orders

Partially fillable orders have many advantages for one-off transactions and everyday retail traders, but they really shine when put to work as a part of a broader strategy.

Here are some trading strategies that work well with partially fillable orders:

-   **Buybacks for DAOs**: Partially fillable orders provide great benefits for DAO treasury management. Imagine that a DAO wants to perform a large buyback of its token at a certain price. Rather than having to coordinate with multiple stakeholders (such as multiple investors who may want to sell the token) and time the market perfectly, these DAOs can simply set a partially fillable limit order to buy their token for a certain price and buy tokens from the market as liquidity at a favorable price becomes available.
-   **Buy & Sell Walls**: Partially fillable limit orders can be used to set buy & sell “walls” for continuous trades. For example, a trader can submit a partially fillable order that is set to purchase ETH any time it drops below a certain price and sell it any time it goes above a certain price.  
    This is a beneficial use-case for projects that have launched or are launching a token. The nature of token launches makes it hard to predict how the token price will behave initially — something that has a deep impact on the public perception of the project. With partially fillable limit orders, projects can strategically buy and sell their token to ensure that it doesn’t go outside of a certain price range.
-   **Stablecoin Arbitrage**: Stablecoins are a cornerstone of the crypto industry. For most use-cases, stablecoins are reliably pegged to $1, but, on the micro-level, they are usually fluctuating by a few hundredths of a cent at all times.  
    Partially fillable limit orders can be used to capitalize on this arbitrage by setting a 1:1 trade order to swap between stablecoins (such as USDC and DAI). Since partially fillable limit orders on CoW Swap are surplus capturing, this trade will only execute when the price of the stablecoins moves such that there is enough surplus to cover fees. Often, this means that there is also enough surplus to make a profit, so traders may end up swapping $1,000 USDC, for example, for $1,050 DAI.  
    It’s important to keep in mind that this strategy is really only worthwhile when trading in large amounts. The volatility of stablecoin prices is usually so minimal that it takes rather large amounts of capital to make arbitrage worth it. Remember to Do Your Own Research.

## Get Started with Partially Fillable Limit Orders on CoW Swap

Partially fillable limit orders are now enabled by default for all limit orders on CoW Swap. If you’d like to disable partially fillable orders and go back to fill or kill orders, you can do so through a toggle in your trade settings.

As with all other order types on CoW Swap, partial fills:

-   Aggregate liquidity from the best prices available on-chain
-   Improve prices via Coincidence of Wants (peer-to-peer matching)
-   Protect users from MEV
-   Take fees in the sell token, not in ETH (unless you’re selling ETH!)
-   Don’t charge for failed transactions
-   Are free to place and free to cancel

Give partially fillable limit orders a try today and let us know what you think by reaching out on  [Twitter](https://twitter.com/CoWSwap)  or  [Discord](https://discord.com/invite/cowprotocol)!

## About CoW DAO

CoW DAO is an open organization of developers, traders, market makers and many more community members aligned with its vision. CoW DAO is focused on fair and decentralized trading systems — in particular, building, maintaining and advancing the CoW Protocol. CoW Protocol technology powers a network of traders and solvers, enabling trustless and efficient peer-to-peer trading. Leveraging batch auctions as a key concept uniquely positions CoW Protocol as native trading infrastructure for discrete-time settlement layers like Ethereum and enables fair and accessible trading to its users.

🐦 [Twitter](https://twitter.com/CoWSwap)| 📒 [Documentation](https://docs.cow.fi/)| 💬  [Forum](https://forum.cow.fi/)  | 📊  [Analytics](https://dune.com/cowprotocol)  | 📸 [Snapshot](https://snapshot.org/#/cow.eth)

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Partial fills bring faster trade execution and increased chances of Coincidence of Wants to limit orders on CoW Swap


CoW Swap Improves the Limit Order Experience with Partially Fillable Limit Orders

Today, CoW Swap is proud to kick off a new era in stablecoins with the introduction of the world’s very first  **milk-backed stablecoin**.

Are you tired of constant depegs and regulatory scrutiny? Is your grandma always asking how your internet coins are doing? Well look no further than CoW Swap’s brand new stablecoin. We call it Unified Simple Dairy Coin (USDC).

CoW Swap USDC is backed by liters of the world’s oldest commodity — cow milk. That’s right, we’re finally putting the farm on the blockchain as we harness the power of silos brimming with fresh milk to back the reserves of the Unified Simple Dairy Coin.

![1-milk-stablecoin.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/1_milk_stablecoin_b1618ff920.webp)

Unified Simple Dairy Coin has several advantages:

-   There’s no fractional reserve banking when it comes to Dairy-Fi (or DaFi, as we call it). Each Unified Simple Dairy Coin is backed by one liter of cow milk
-   The most compliant stablecoin — milk is recognized as a commodity by the CFTC so we’re in clear waters when it comes to regulation from day one
-   Your grandma’s been drinking milk since she was a little girl — she’ll understand USDC instantly!
-   Milk is an asset endorsed by some of the world’s most famous figures, including Tiger Woods, Fernando Alonso, the Nesquik Bunny, and Santa Claus

![2-milk-stablecoin.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/2_milk_stablecoin_35207e7941.webp)

Do you have beef with algorithmic stablecoins, fractional reserves, and other bull? Have you been waiting for a stablecoin that’s worth its weight in milk? Are you ready to ape into a financial instrument backed by one of the oldest and most stable assets (better than gold!)?

Look no further than Unified Simple Dairy Coin! The grass is greener on this side.**™**

Airdrops are planned for the first 500 people who can send us a video chugging a liter of milk. For each liter you drink, you get airdropped one Unified Simple Dairy Coin!

So open that TikTok camera and get to posting, there’s enough milk to go around. 🥛💰

## About CoW DAO

CoW DAO is an open organization of developers, traders, market makers and many more community members aligned with its vision. CoW DAO is focused on fair and decentralized trading systems — in particular, building, maintaining and advancing the CoW Protocol. CoW Protocol technology powers a network of traders and solvers, enabling trustless and efficient peer-to-peer trading. Leveraging batch auctions as a key concept uniquely positions CoW Protocol as native trading infrastructure for discrete-time settlement layers like Ethereum and enables fair and accessible trading to its users.

Check out our website  [https://cow.fi/](https://cow.fi/)

🐦 [Twitter](https://twitter.com/CoWSwap)| 📒 [Documentation](https://docs.cow.fi/)| 💬 [Discord](https://discord.gg/cowprotocol)  | 📊 [Analytics](https://dune.xyz/gnosis.protocol/CowSwap)  | 📸 [Snapshot](https://snapshot.org/#/cow.eth)

large_cow-swap-introduces-new-milk-backed-stablecoin cover photo.webp

medium_cow-swap-introduces-new-milk-backed-stablecoin cover photo.webp

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thumbnail_cow-swap-introduces-new-milk-backed-stablecoin cover photo.webp

cow-swap-introduces-new-milk-backed-stablecoin cover photo.webp

CoW Swap Introduces New Milk-Backed Stablecoin

## Update as of 08/02/2023

The barter solver who got hacked already [refunded the losses it caused.](https://etherscan.io/tx/0x61a5196468b276bcedc3aab2f2fe255c2d54ca1c655523f4b25c99b1a224e715?source=post_page-----2faa9f918e29--------------------------------)

Next steps for CoW DAO are to [decide on the slashing process and to judge whether the Barter Solver can be re-added to the solver competition.](https://forum.cow.fi/t/cip-draft-slashing-of-the-barter-solver-responsible-for-a-hack-causing-cow-dao-a-loss-of-1-week-fee-accrual/1440?source=post_page-----2faa9f918e29--------------------------------)

## TL;DR

On February 7th 2023, CoW Swap’s settlement contract suffered an exploit wherein a hacker was able to drain  [~$166K](https://dune.com/queries/1975506)  from the contract. Although still an exploit, it is important to highlight two crucial facts regarding this hack:

-   User funds  **WERE NEVER AT RISK**  and have  **NOT**  been  **COMPROMISED**.
-   The protocol  **WILL RECOVER**  the stolen funds through its solver bonding pool mechanism, which is intended to mitigate such incidents.

To recap: as a trader, there is  **NO**  reason to worry or revoke approvals. CoW Swap never takes custody of your funds, since all trades are purely atomic. In order to have your funds compromised through CoW Swap, a hacker would need to obtain a signature from your private keys or have direct access to them.

## Background information

CoW Swap engages in a so-called “solver competition”, where external parties develop an algorithm to compete against other solvers to find the best execution route for CoW Swap users. Each solver team is independent from each other, and is able to deploy the necessary measures for their algorithm to perform in the best possible way.

In the hunt for better prices, solvers are allowed to tap into the CoW Swap settlement contract’s funds (called the “buffers”) to replace certain AMM interactions and thus save on gas. The  [settlement contract](https://etherscan.io/address/0x9008D19f58AAbD9eD0D60971565AA8510560ab41)  holds the buffer funds and allows the solver teams to tap into them whenever needed. These buffers accrue from fees that users pay in their sell token and are periodically drained into the protocol’s reward Safe.

In order to prevent malicious behaviour on the part of solvers and to recover from any exploits, in  [CIP-7](https://snapshot.org/#/cow.eth/proposal/0x267edf7a0bd3c771cfca763322f011ee106d8d5158612c11da29183260d1dba7)  CoW Swap implemented a bonding pool mechanism by which each solver needs to deposit $500,000 worth of cUSDC and 1.5M COW tokens as collateral for these sorts of scenarios. In the event of malicious behaviour or a hack, solvers would then get slashed and part of their bond is removed to cover for such events.

## How did it all happen?

On January 27th, 2023 a new solver entered the competition: the  [Barter solver](https://etherscan.io/address/0x55a37a2e5e5973510ac9d9c723aec213fa161919). The process was typical: after some time in staging and the depositing of the bond in the pool, the solver was allowlisted and moved onto production. Shortly after being allowlisted, the Barter solver set an  [approval](https://etherscan.io/tx/0x92f906bce94bab417cccc87ae046448d7fb8c2c0350b7ed911545577acb3bfc1)  to a contract they developed, called SwapGuard.

The aim of the intermediary SwapGuard contract is to limit the amount of tokens that can be lost in a single transaction due to slippage The goal for the Barter solver when interacting with this contract was to prevent their settlements from being exploited by MEV when submitted on-chain.

In this  [batch settlement](https://etherscan.io/tx/0x92f906bce94bab417cccc87ae046448d7fb8c2c0350b7ed911545577acb3bfc1)  that the Barter solver won, we can see that they performed a series of swaps and a single approval when executing the batch settlement. This approval is the reason for the incident.

![1-how-did-it-all-happen.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/1_how_did_it_all_happen_6d61046a45.webp)
[https://phalcon.blocksec.com/tx/eth/0x92f906bce94bab417cccc87ae046448d7fb8c2c0350b7ed911545577acb3bfc1](https://phalcon.blocksec.com/tx/eth/0x92f906bce94bab417cccc87ae046448d7fb8c2c0350b7ed911545577acb3bfc1)

![1-1-how-did-it-all-happen.webp](https://celebrated-gift-f83e5c9419.media.strapiapp.com/1_1_how_did_it_all_happen_e90af26bd7.webp)
[https://twitter.com/peckshield/status/1622801412727148544/photo/1](https://twitter.com/peckshield/status/1622801412727148544/photo/1)

The SwapGuard contract was previously approved to spend the settlement contract’s DAI as part of a settlement. Because of a security issue that allowed arbitrary call execution from the SwapGuard contract, the attacker was able to leverage the existing approval to transfer funds from the settlement contract to their account ([address 1](https://etherscan.io/address/0xc0e82c1ed4786f8b7f806d1b8a6335ec485266ff)  and  [address 2](https://etherscan.io/address/0x94b6F400df694D0de29F600B15BAeed83E95658C)). The  [Barter solver](https://etherscan.io/address/0x55a37a2e5e5973510ac9d9c723aec213fa161919)  made the mistake of approving a vulnerable contract with the maximum value of DAI to SwapGuard, which is the root cause of the attack. This meant that since the contract had an interface for an arbitrary call, any informed hacker could call upon this function to drain the token allowances with the correct permissions.

It appears that the hacker was aware of the CoW Swap solver process, as they waited until the last day of fee accrual before performing the attack. Fees are usually withdrawn once a week on Tuesdays.

Once the issue came to light, the Barter team and the CoW Swap team hit the ground running to mitigate any possible damage or side effects. After some debugging, the issue was discovered and mitigated. All approvals for the ‘bad contract’ have been revoked, and the Barter Solver has upgraded to a new  [contract](https://etherscan.io/address/0xCce534eE5eba0bC94ddBB2B831D264AD86a5FFf4#code)  which has no arbitrary execution code functionality built in.

## What are the next steps?

As mentioned before, all approvals for the bad contract have been revoked, and no more funds are at risk. As per the rules defined by  [CIP-7](https://snapshot.org/#/cow.eth/proposal/0x267edf7a0bd3c771cfca763322f011ee106d8d5158612c11da29183260d1dba7), CoW DAO will slash the barter solver to compensate for the losses and will denylist the solver until full repayment is done.

## About CoW DAO

CoW DAO is an open organization of developers, traders, market makers and many more community members aligned with its vision. CoW DAO is focused on fair and decentralized trading systems — in particular, building, maintaining and advancing the CoW Protocol. CoW Protocol technology powers a network of traders and solvers, enabling trustless and efficient peer-to-peer trading. Leveraging batch auctions as a key concept uniquely positions CoW Protocol as native trading infrastructure for discrete-time settlement layers like Ethereum and enables fair and accessible trading to its users.

Check out our website  [https://cow.fi/](https://cow.fi/)

🐦 [Twitter](https://twitter.com/CoWSwap)| 📒 [Documentation](https://docs.cow.fi/)| 💬 [Discord](https://discord.gg/cowprotocol)  | 📊 [Analytics](https://dune.xyz/gnosis.protocol/CowSwap)  | 📸 [Snapshot](https://snapshot.org/#/cow.eth)