Cow Swap, a Dex aggregator, targets a 33% trade strengthening with a new feature, more reward
Cow swap, a Decentralized exchange The aggregator, is set to introduce a feature it says will boost the number of transactions it can handle and offer more rewards to those who facilitate trade.
This feature, called combinatorial auctions, will allow solvers, routes for combined -with -along, helping the first time offering entrepreneurs the best swap. Aggregators are one-stop stores looking for a lot of Dexs to find the one that offers the most efficient cost traders.
The existing cow swap system is “strict because only a single solver can win every auction,” Andrea Canidio, a senior research economist at Cow Dao, said in CoinDesk. “Only one can succeed, force the other to wait for the next auction.”
Under the new system, that passed A DAO vote on Thursday, many solvers can suggest better solutions to pending orders, if they have.
“If a combined solution creates a shared value for all parties, it will win; otherwise, different solvers can fulfill different orders independently,” Canidio said.
Cow DAO estimates that the transition can increase the order order of around 33%. That is significant, as the competition with the Dex aggregators is warming up.
During the past week, the cow and rival swing combined Data. If the new feature of the cow swap works as predicted and increases trading throughput, it will help pull it in advance.
Cow swap works differently with most other decentralized exchanges and combined. Instead of using Liquidity pools To facilitate trading, such as Uniswap, it uses a peer-to-peer system. Users submit trading after third parties – solvers – compete to match buyers with sellers well in a single transaction. The main benefit of this system is that it prevents entrepreneurs who have been victimized in the negative forms of maximum can be obtained amounto mev.
There are many more rewards
With more solvers to participate in cow replacement at the same time, the average rewards they can earn should rise by almost 25%, Cow Dao said.
While that is great for solvers, it does not cut and dry for protocol.
Cow swap solvers are paid to cowketers tokens, the protocol management token. If, for example, the cow swap pays more than the rewards without an equivalent trading increase, it will hurt the efficiency of the protocol.
Canidio said he hopes to benefit the cow swap from the increased transaction by “a less increasing increase in solver rewards.”
Simply put, combinatorial auctions should make the cow replacing better.
The Cow Swap said it expects the test of the new system will begin around May 20, and the entire launch of all chains will occur around June 3.
Read more: Why is one of the most —outspoken members of the Uniswap Dao just walked in frustration
