CowSwap, Gnosis Protocol integrates with Balancer vault architecture via smart contract

CowSwap upgrades to its first stable and audited version today after a tight integration with Balancer’s new vault architecture. The upgrade marks its transition from Alpha to its final version, Gnosis wrote on Medium. CowSwap was launched in partnership with Balancer V2 this spring.

“We believe that with collaboration, we can out-cooperate the competition. By integrating both protocols, users get a win-win, as Balancer users will be able to enjoy benefits such as MEV protection, no gas fees for failed transactions, and more, while CowSwap users will also benefit from better prices due to the optimized pool settlements and use of the Balancer v2 single vault architecture,” Gnosis wrote.

Stages of Balancer-Gnosis partnership

In the first stage, CowSwap was launched as a proof-of-concept Dapp to test features like gasless orders, batch trading, and MEV protection. The interface had achieved around 30K trades from 8K unique traders, $230 million of trading volume, and other impressive results within three months of going live.

Significant trade volume and liquidity moved from v1 after Balancer v2 launched this spring. Now, CowSwap transitions to audited contracts and integration with Balancer v2, enabling an improved user experience and optimized gas efficiency. The next step involves an integration between Balancer v2 and GPv2 contracts as trusted contracts. Then, users will be able to trade in GPv2 via their UI. After that, traders on Balancer will get the best possible prices, leading to better prices for all traders of CowSwap because trade frequency is directly proportional to the chances for CoWs.

Advantages of new smart contracts: gas efficient and safe  

These smart contracts will let Balancer liquidity pools be relatively gas efficient. They’ve undergone internal and external audits, making the version safer and more professional compared to the previous one.

Basic and complex integration

Users will be able to interact in two ways after the new architecture has become fact: a basic integration with both protocols sharing the allowance mechanism and a new and more involved one with users of both being allowed to leverage the Balancer vault. The latter will also make it possible for users to leverage their existing ERC20 vault approvals and make direct swaps against Balancer pools in a gas-efficient way.

CowSwap currently has an offer of 80% discount on gas fees for all trades as the new integration will require all past users to re-approve tokens for trading.  

The post CowSwap, Gnosis Protocol integrates with Balancer vault architecture via smart contract appeared first on Invezz.