What is CoW Protocol? CoW Protocol is a permissionless cryptocurrency trading platform that collects price data from bulk auctions. cryptocoin.com In this article, we have answered the curious questions such as what is the CoW Protocol, what it offers, what is the COW coin, what is it for, how to get it. Let’s examine together this crypto platform, which maximizes liquidity by integrating mass auctions.
What is CoW Protocol?
CoW Protocol is a Blockchain project that supports users to trade cryptocurrencies in a unique way. Built on the Ethereum network, this project basically serves as a cryptocurrency trading platform. Users can buy and sell various cryptocurrencies within COW. The platform allows users to access some DeFi services. It also provides a number of benefits such as users finding the best priced cryptocurrency exchange.
CoW Protocol uses bulk auctions for various on-chain liquidity sources. It matches trading data on its platform through this mechanism. Trades may be closed depending on which pool/path offers the best price. This happens directly or via on-chain AMMs. The platform scans all exchanges by matching trading data. As a result, it identifies the exchange that offers its users the best price for the asset they want to buy. So it acts as a DEX collector.
What advantages does it offer?
CoW Protocol matches as many peer-to-peer trades as possible. Thus, it eliminates middlemen and saves users money. It also analyzes the exchanges and shows the exchange that offers the best price for cryptocurrencies to its users. Unlike all other DEX aggregators, COW never charges fees for failed transactions. However, it also supports its users to perform multiple actions at the same time. Finally, it protects them from various exploits such as sandwich attacks.
What is COW? What does it do?
COW is a payment and governance token for the CoW Protocol. Transaction fees paid in asset transfer between chains and applications via the protocol are paid with this cryptocurrency. COW is basically an ERC-20 based token. So instead of running on its own Blockchain, it uses the Ethereum infrastructure. However, it also makes it possible to participate in the management of the protocol. Accordingly, COW holders gain voting rights in the management by participating in the platform’s DAO.
What is CoW Protocol? How to get COW?
The cryptocurrency is currently listed on exchanges such as MEXC, BKEX, DODO and CoinEx. Investors who want to buy the token must become a member of one of these exchanges and deposit an asset in their account according to COW coin pairs. Investors who do this can purchase varying amounts of cryptocurrencies depending on the balance in their wallets.
