CoW Protocol - Partnership One Pager

# **Overview** **CoW Protocol** is the **#1 intent-based DEX aggregator** and **#2 DEX aggregator** by market share; it is the pioneer and the **first exchange leveraging intent-based architecture**. CoW Protocol, the underlying protocol behind [CoW Swap](https://swap.cow.fi/), provides the fundamental components to enable the creation of **highly efficient trading solutions** within the Web3 ecosystem by leveraging an **intent-based, delegated trading execution model**. CoW Protocol **settles trades via batch auctions** for which **a network of solvers compete amongst each other to give the users’ trade intents the best price possible**. When settling users' intents, solvers are able to tap into any AMM on-chain liquidity source, tap into any DEX Aggregator, any private liquidity (e.g. market maker) or match users P2P in what we call a **CoW (Coincidence of Wants)**. Essentially, CoW Protocol’s network of solvers act as a matching engine, in which users are either **settled with existing on-chain infrastructure or directly against other off-chain counterparties**. Learn more on our [docs page](https://docs.cow.fi/cow-protocol). # **Market Performance Highlights** Since its launch in April 2021, CoW Protocol has facilitated > $41B of trading volume, 1.1M+ trades and generated > $232M trade surplus for users. Key statistics of CoW Swap can be found on this [dashboard](https://dune.com/cowprotocol/cowswap-high-level-metrics-dashboard?Aggregate+by_e759c2=Week). **Market Share** * **[Against DEX Aggregators](https://dune.com/queries/2483003/4084810):** CoW Protocol holds over 18% of the volume market share, close to doubling the relative market share against its competitors over the year of 2023 * **[Against Intent-Based DEX Aggregators (UniswapX & 1inch Fusion)](https://dune.com/queries/3058985/5097190):** ~40% market share * **[For DAO & Safe](https://dune.com/queries/2393631/3927102):** captures nearly half of the existing DAO & Safe volume on Ethereum mainnet # Competitors Comparison **Full MEV Protection** CoW Protocol distinguishes itself through its offering of **full MEV protection**, which is facilitated by its unique batching mechanism that settles trades within one batch / block at a single clearing price. Price differences in a single Blockchain block are the main cause for MEV as reshuffling transactions allows for the extraction of user slippage. This phenomenon is fully avoided at application layer when all assets in a batch are cleared at **uniform clearing price** and generated surplus is distributed across its users. While this model is made possible based on CoW Protocol’s intent-design, the batching model itself is highly advanced and has not been replicated by competitors in the market **Batch Auction Mechanism** The above-mentioned batch auction mechanism comes with additional benefits for CoW Protocols users, namely it is designed to provide users with significant surplus on their trades. By aggregating multiple trades, users generate better prices with lower slippage, lower gas costs, and avoidance of underlying protocol fees. CoW Protocol has already generated >$23M in user’s surplus ([link](https://dune.com/queries/1368423/2330499)) **Overall Competitive Edge**: CoW Protocol boasts the highest MoM retention rate among DEX Aggregators, consistently above 30% and continually increasing. This indicates a strong user base loyalty and satisfaction. The combination of full MEV protection and the potential for better trading outcomes through the batch auction system serves as a significant attractor for users seeking more efficient and secure trading experiences # **CoW Protocol Product Summary** **Supported Chains** Cow Protocol is currently on Ethereum Mainnet and Gnosis Chain. Deployment on other Layer 2 networks is key to our 2024 Roadmap and CoW Protocol will begin to support L2 Networks beginning from Q2 2024. **Supported Liquidity Providers** CoW Protocol aggregates virtually all onchain liquidity sources as well as many market makers quoting using RFQ. CoW Protocol’s model allows any integrated solver to add support for new liquidity sources on their own - this means liquidity sources get integrated very quickly. The wide range of liquidity sources solvers tap into to find the best execution paths for users' trade intents include: • AMMs (e.g. Uniswap, Sushiswap, Balancer, Curve, etc.) • DEX Aggregators (e.g. 1inch, Paraswap, Matcha, etc.) • Private Market Makers **Supported Tokens** CoW Protocol supports any ERC20 tokens and this is the [current default token list](https://github.com/cowprotocol/token-lists) on CoW Swap. Additional tokens can be supported with the [Request to Add Token Form](https://github.com/cowprotocol/token-lists/issues/new?assignees=&labels=addToken&template=addTokenForm.yml&title=%5BAddToken%5D+%60SYMBOL%60+on+%60NETWORK%60). **Gasless Trading** [Gasless approval feature](https://blog.cow.fi/announcing-gasless-approvals-on-cow-swap-0bb803d900c2) enables traders to swap over 150 tokens completely gaslessly without requiring the user to submit another transaction for it. **Supported Order Types** * **Market Order** * **Limit Order** - with [Partially Fillabe Limit Orders](https://blog.cow.fi/cow-swap-improves-the-limit-order-experience-with-partially-fillable-limit-orders-45f19143e87d) * [**TWAP**](https://blog.cow.fi/cow-swap-launches-twap-orders-d5583135b472)- CoW is the first DeFi project to launch native support to this advanced order type * **Programmatic Orders** - with [Programmatic Order Framework](https://blog.cow.fi/introducing-the-programmatic-order-framework-from-cow-protocol-088a14cb0375) to enable a wide range of automated orders options e.g stop loss is already in the works, expecting additional order types to be implemented in the near future **Fees** Since January 2024, CoW Protocol is in the process of testing fee models that are incentive-aligned with its users (i.e. fee models that are based on the protocol's ability to generate surplus and improve prices for users). Fee models that are active are on this [page](https://docs.cow.fi/governance/fees). # CoW Swap Integration **CoW Swap Widget** [CoW Swap Widget ](https://cow.fi/widget)is a quick to install and easy to customize white-labelled CoW Swap solution. Add the Widget iframe to your site / dApp in 5 to 10 minutes with a few lines of code. Learn more on our tutorial's [page](https://docs.cow.fi/cow-protocol/tutorials/widget?utm_content=widget-page-readdocs-cta-hero&utm_medium=web&utm_source=cow.fi). **Customized Integration** Discuss with our BD team on full integration requirements. As a primer, learn more about our SDK, API, and contracts on our [technical docs page](https://docs.cow.fi/category/technical-reference). **Integration Economics** Currently, CoW does not charge partners for integrating CoW Swap. Cow DAO offers ****volume-based grants**** for bringing order flow to CoW Protocol (see this [grant](https://snapshot.org/#/cowgrants.eth/proposal/0xb622022031885f1128f966e320d308115e53ee51f6a380e0ff2d77e95f4dd19a) as an example). CoW also enable integration partners to participate in the **Partner Fee program** to collect fee on trades executed by Partner's users (see calculation examples [here](https://docs.cow.fi/governance/fees)). # **Growing List of Integration Partners** **Top-tier projects** integrated and using CoW Protocol include [Balancer](https://balancer.fi/), [Safe](https://safe.global/), [Defi Llama](https://defillama.com/), [Yearn](https://yearn.fi/), [Shapeshift](https://shapeshift.com/), [Gnosis](https://www.gnosis.io/). **DAOs uses CoW Protocol** for [treasury management](https://blog.cow.fi/cow-swap-for-daos-8d67831c2a13). With more than 40% of all DAO trading volume goes through CoW Swap, see how CoW Swap can help your DAO on [effective treasury management](https://blog.cow.fi/effective-treasury-management-for-daos-84bf17b8d834) and delayed trade execution with [Milkman](https://blog.cow.fi/what-is-milkman-cow-swaps-solution-for-delayed-execution-trading-c0d647832d38). See DAOs' user stories: [Nexus Mutual](https://blog.cow.fi/nexus-mutual-trade-breakdown-4aacc6a94be8), [ENS](https://blog.cow.fi/ens-trade-breakdown-a8eb00ddd8c0), [Aave](https://blog.cow.fi/aave-trade-breakdown-e17a7563d7ba). # **CoW Protocol Technical Info** **CoW Protocol's Docs** Overall Docs page ([link](https://docs.cow.fi/)) Technical Docs page [(link)](https://docs.cow.fi/category/technical-reference) **Code Repo** CoW Protocol github page ([link](https://github.com/cowprotocol/)) **Code Audits** * COW token audit ([link](https://github.com/cowprotocol/token/tree/main/audits)) * Core (Gpv2) audits ([link](https://github.com/cowprotocol/contracts/tree/main/audits)) * Composable CoW audit ([link](https://github.com/cowprotocol/composable-cow/tree/main/audits)) * Native Token Sell Flow audit ([link](https://github.com/cowprotocol/ethflowcontract/tree/main/audits))