The Balancer-Gnosis(CoW)-Protocol:
A new era of cooperation to bring DEX trading to the next level
The Balancer Labs & CoW Protocol integration is now live, bringing better prices, MEV protection and some other UX perks to users of both protocols.
The day has finally arrived, the Balancer-Gnosis(aka CoW)-Protocol integration is live on Ethereum. The integration involves two parts: i) The CoW Protocol is integrated natively in Balancer, facilitating all swaps submitted via the Balancer UI to be executed on the CoW Protocol and ii) the CoW Protocol has natively integrated the Balancer vault, enabling some gas-optimizations.
All trades submitted via the Balancer UI will now be settled on the CoW Protocol, adding following perks for the traders:
- MEV protection
- Best available on chain prices by tapping into ALL on chain liquidity pools, routing via aggregators and finding coincidence of wants
- Gasless trading
- Subsidized fees
The collaboration also adds significant perks for the existing CoW Protocol users:
- The famous Quasimodo Solver (our friend that constantly looks for Coincidence of Wants in our order book) is tapping natively into Balancer’s liquidity pools to facilitate settling partial CoWs.
- In the future fast-path settlements will be facilitated, where individual trades can be directly settled on the Balancer vault without routing through the Cow Protocol’s settlement contract, saving the users some additional $$ in transaction fees.
The beauty of CoW Protocol is it’s positive network effect: the more orders are routed via the CoW Protocol, the more Coincidence-of-Wants can be found which lead to better prices and more protected volume. We are very happy to have Balancer onboard as the first partner towards our journey to revolutionize DEX trading on Ethereum.
Questions? Join the CowSwap Discord Server. For updates on the development of CowSwap, and Balancer-Gnosis(Cow)-Protocol, follow @MEVProtection on Twitter and make sure to check the Gnosis Protocol category in the GnosisDAO forum.