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CowSwap

1

Felix Leupold

Gnosis Protocol

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DEX Trading Today

CowSwap Vision

2

TX Hash

Index

Trade

Price

Protocol

0xc04fad...

0

ETH -> YFI

23.22

Uniswap

0xa1d06b...

2

YFI -> ETH

24.01

Uniswap

0x9517bc...

123

ETH -> YFI

22.34

Uniswap

0x9517bc...

123

YFI -> ETH

22.71

Sushiswap

0x8bd17c...

131

YFI -> ETH

22.33

Uniswap

TX Hash

Index

Trade

Price

Protocol

0xabf4d0...

1

ETH -> YFI

22.34

GPv2

0xabf4d0...

42

YFI -> ETH

22.34

GPv2

0xabf4d0....

1337

YFI -> ETH

22.34

GPv2

Gnosis Protocol

Gnosis Protocol

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Proposed Solutions to MEV

  • Base Layer
    • Enforce random ordering
    • Encrypt transaction content (time-locked, commit-reveal)
    • Separate transaction sequencing & transaction execution
  • Infrastructure Level
    • Flashbots (MEV Geth)
    • MistX, Archer Swap
  • Dapp Level
    • Keeper DAO
    • 0x RFQ Orders
    • Gnosis Protocol

3

Gnosis Protocol

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Core Ideas

4

Gnosis Protocol

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  1. Delegated Trade Execution

5

Today

GPv2

Gnosis Protocol

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2. Coincidences of Wants

6

Uniswap

0.3% spread

Selling 2000

USD for ETH

Selling 1 ETH for USD

0.3% spread

Gnosis Protocol

no spread

Selling 2000

USD for ETH

Selling 1 ETH for USD

Gnosis Protocol

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Coincidences of Wants (advanced)

7

Uniswap

Gnosis Protocol

Gnosis Protocol

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MEV Protection Summary

User 1

sells ETH

User 2

sells ETH

User 3

buys ETH

Coincidence of Wants: fully MEV protected, max. gas efficient, no LP fee

All Ethereum Dex Liquidity

Excess: MEV protected by tight slippage set by the solver. Matched against best available on chain liquidity

Batch Auction

User 4

buys ETH

Gnosis Protocol

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2. Batch Auctions with Uniform Clearing Prices

Continuous Limit Orderbook

Batch Auction Orderbook

Orders �A -> B

Orders �B -> A

EXCHANGE RATE A VS. B

TRADING VOLUME [A]

Traders’�surplus�

OPTIMAL PRICE

Gnosis Protocol

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  1. Delegated Trade Execution

10

Gnosis Protocol

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Deeper Overview

Gnosis Protocol