DEX aggregator CoW Swap's core team has proposed adding fees in six-month test

Crypto Ecosystems • November 4, 2023, 2:11PM EDT

Published 1 minute earlier on

Quick Take

CoW Protocol’s core developers have proposed adding fees to the protocol for six months in order to test which fee models would be best suited for long-term adoption.

CoW Swap's core development team has released a draft proposal that would see the protocol adding fees for 6 months in order to test which model is best suited for long term adoption.

The core developers of the protocol, which aggregates other decentralized exchanges (DEX) like Uniswap and 1inch and offers MEV-resistance in order to give its users the best price, said the aim of the test is to "develop revenue streams that are reliable and sustainable" by testing different fee models, including taking a percentage of the money users saved by using CoW Swap over competitors and charging a flat fee for every trade.

The fee revenue will accumulate to the CoW DAO, the proposal explains, and the core team will provide public notice of all current fees while the test is underway. CoW Swap's team did not reply immediately to a request for comment from The Block.

CoW Swap is currently the second most popular DEX aggregator on Ethereum by volume, according to data from The Block.

About Author

Zack Abrams is a writer and editor based in Brooklyn, New York. Before coming to The Block, he was the Head Writer at Coinage, a Web3 media outlet covering the biggest stories in Web3. The story he co-reported on Do Kwon won a 2022 Best in Business Journalism award from SABEW. Other projects included a deep dive into SBF's defense based on exclusive documents and unveiling the identity of the hacker behind one of 2023's biggest crypto hacks — so far. He can be reached via X @zackdabrams or email, [email protected].