Dear CoinEx users,
To provide you with more trading options, after rigorous reviews, CoinEx will list COW and support deposit and withdrawal & Automated Market Making (AMM) on March 30, 2022 (UTC). And its trading pair COW/USDT will be available on the same day.
1. Deposit: 03:00 March 30, 2022 (UTC)
2. Withdrawal: 03:00 March 30, 2022 (UTC)
3. Trading pair: COW/USDT
4. Opening method: Call Auction
a. Call Auction
03:00-06:50 March 30, 2022 (UTC)
Orders can be placed and canceled
06:50-07:00 March 30, 2022 (UTC)
Orders can be placed but cannot be canceled
07:00 March 30, 2022 (UTC)
CoW Protocol is a fully permissionless trading protocol that leverages Batch Auctions as its price-finding mechanism. CoW protocol enables batch auctions to maximize liquidity via Coincidence of Wants (CoWs) in addition to tapping all available on-chain liquidity whenever needed. Batch Auctions are continuously run by the protocol because the solvers, the parties in charge of finding the most optimal settlement for the batch, are in competition to settle it. The winning solver will be the one that can maximize traders’ surplus by either having the most optimal CoW, finding the best liquidity sources, or combining both in a single settlement.
CoW Protocol matches trades via batch auctions for a variety of on-chain liquidity sources. Trades can be settled via underlying on-chain AMMs directly or via DEX Aggregators, depending on which pool/path offers the best price. It is thus essentially acting as a DexAggregator of the DexAggregators.In addition to that, before finding the best price for a trade from available on-chain liquidity, Cow Protocol first seeks a coincidence of wants within the existing batch to offer an even better price than any pool can.
COW is the governance token of the protocol, and holders of COW can get a discount on trading fees.
What is Automated Market Making (AMM)?
Automated market making (AMM) can calculate the buying and selling price according to the formula, so as to provide a continuous quotation for the market. CoinEx combines AMM with the order book, which means the liquidity pool will be automatically converted into the order book. With the "constant product market maker formula" algorithm in AMM, no matter how large the order book is or how small the liquidity pool is, firm liquidity provision to the market can be guaranteed. Learn more
Fees and Profit
Market supporting automated market making is an AMM market. Compared with normal market, AMM market adopts an independent fees system. The fees for both marker and taker is 0.3%, for market makers is 0.15%. VIP will not enjoy any special fees, and using CET for fees deduction is unavailable. All users are qualified to apply for market makers, and 50% of the market's transaction fees will be rewarded to liquidity providers.
Characteristics of AMM
1. Bonus obtainable from automated market making
User’s provided liquidity will be injected into the pool for automated market making. 50% of the market's transaction fees will be rewarded to liquidity providers in terms of the corresponding pool proportion.
2. Daily bonus can be cumulatively withdrawn
The transaction fee bonus will be calculated once a day and automatically credited into the user's Market Making Account before 4:00 (UTC) the next day. The user can obtain all the accumulated fee bonus after removing liquidity.
3. Free access, no charge required
Assets between Spot Account and Market Making Account can be transferred in real-time by adding and removing liquidity. Each user in a single market can increase liquidity twice a day, and no fees will be charged during the operation.
The assets in the Market Making Account will be injected Into the liquidity pool for automated market making. When the price fluctuates, there will be impermanent losses, and the amount of the two assets will change when the liquidity is removed. More details about impermanent losses
March 30, 2022