CowAMM is cool/interesting but not fully explained

[AndreaC]

Hi @Mookow4eva

thanks for your message! We wrote an evaluation of CoW AMM so far, where we discuss the current limitations and when/how we plan to address them. It should help answering some of your questions. You can find it here:

4 months of CoW AMM: what we have learned and the next steps

TlDR. CoW AMM is still in beta, and there is ample room to increase the return for its LPs further. Despite this, depending on the method and the pool, the returns to providing liquidity to CoW AMMs are similar to or significantly better (3% extra per month) than the best alternative for passive LPs. Executive summary CoW AMM’s promise to protect liquidity providers from LVR, that is, the excess profits made by arbitrageurs when rebalancing an AMM. During the first few months of its existence,…