CoW AMM, an automated market maker (AMM) developed by CoW DAO, is now operating on the Base network. CoW AMM is designed to protect liquidity providers (LP) from losses due to rebalancing (LVR) and maximize extractable value (MEV) to benefit LP.
Instead of relying on traditional transaction fees, CoW AMM eliminates LVR by using a network of solvers and batch auction sessions to transfer profits from price discrepancies to LP. This mechanism helps LP avoid being exploited by MEV bots and increases profits from providing liquidity.
The deployment of CoW AMM on the Base network opens new opportunities for users and LP to participate in a safer and more efficient trading environment. For more details and to participate in providing liquidity, you can visit the official CoW DAO website.