CoW Protocol

CoW Protocol is a trading protocol in which users submit their swap requests as signed orders instead of sending them directly to a liquidity pool. Orders are collected off-chain and processed in batch auctions; its most widely known interface is CoW Swap. The protocol started on Ethereum and can now also be used on networks such as Gnosis Chain, Arbitrum and Base. COW is the governance token of CoW DAO.

Independent participants called solvers compete to find the most favorable execution for each batch. In doing so, they can match orders directly when two users' needs mirror each other (Coincidence of Wants, or CoW for short) and route the trade to decentralized exchanges (DEXs) when needed. Applying a single price for the same asset within the same batch aims to protect users from MEV attacks such as front-running. COW holders vote on DAO proposals; the token has also been used to distribute rewards to solvers.

Trading volume through the protocol, DAO decisions on fee policy, rival swap aggregators and general activity in the Ethereum ecosystem can influence the COW price. The CoW Protocol price on Lzzo.com is obtained by converting the COW/USDT pair on Binance into dollars at the Coinbase Exchange USDT/USD rate, and the chart uses this series.