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CoW Protocol is a decentralised trading platform on Ethereum that uses batch auctions and direct peer-to-peer matching to improve trade efficiency. Founded by Anna George, it operates under a decentralised governance model (CowDAO) where COW token holders influence protocol development and operations.

CoW Protocol is a decentralised trading platform built on the Ethereum blockchain that focuses on optimising trade execution through batch auctions and a mechanism known as Coincidence of Wants (CoWs). The protocol reduces reliance on traditional liquidity pools by enabling direct peer-to-peer matches, which can lower transaction costs and slippage. It also mitigates risks associated with Miner Extractable Value (MEV) exploitation by using solvers—entities that compete to provide the most efficient trade execution for users.

The COW token serves several key purposes within the CoW Protocol ecosystem:

  • Governance:
  • Economic Incentives:
  • Community Engagement:

By combining governance and utility, the COW token drives participation and alignment of interests within the ecosystem.