Crypto glossary
What is CoW Swap? Order matching and CoW Protocol
KriptoMeta Editorial Team
- Added:
CoW Swap is an interface that sends users' trade orders to CoW Protocol. Solvers compete to find execution routes that satisfy the orders, matching opposing demand where possible or using external liquidity.
CoW stands for “Coincidence of Wants”: traders can want the assets that other traders offer. Consistent pricing rules apply to the same directed token pair within an auction. Direct matching is an opportunity, not a promise for every order. The COW token is a governance asset, separate from both the interface and the protocol itself.
Example
Alex wants to sell 1 WETH for USDC, while Jamie wants to spend USDC to acquire 1 WETH. If their constraints overlap, a solver can match the demand in one solution. Any unmatched portion may require another source of liquidity. The possibility of matching does not prove that every trade will fill at a superior price.
A signed order and its on-chain settlement are different records. CoW Explorer helps connect an order identifier with the batch transaction that ultimately executed it.
Source
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