diff --git a/docs/cow-protocol/concepts/benefits/additional-benefits.md b/docs/cow-protocol/concepts/benefits/additional-benefits.md index 834eb1a2..7309fc45 100644 --- a/docs/cow-protocol/concepts/benefits/additional-benefits.md +++ b/docs/cow-protocol/concepts/benefits/additional-benefits.md @@ -4,10 +4,23 @@ sidebar_position: 4 # Additional benefits -CoW Protocol's [intent-based trading model](../introduction/intents) provides a number of benefits, including support for expressing any intent, MEV protection, and price improvement. There are also a handful of additional benefits unique to CoW Protocol thanks to its specific architecture: +CoW Protocol's [intent-based trading model](/cow-protocol/concepts/introduction/intents) and [batch auctions mechanism](/cow-protocol/concepts/introduction/batch-auctions) come together to provide a number of benefits, including support for expressing any intent, MEV protection, and price improvement. +There are also several additional benefits unique to CoW Protocol that every order inherits: - Gasless trades (users pay settlement fees in their sell token; settlement fees can be lower than gas fees if the trade is included in a batch) - No fees for failed or cancelled orders (most exchanges make users pay gas fees regardless of whether their order executes or not) - Order settlement at Ethereum Best Bid Offer or better - Support for placing multiple orders at once - Slippage protection on all orders + +The protocol's architecture also provides important "passive" benefits and supports niche trading use-cases: +- Minimized smart contract risk as solvers take on the exposure to all on-chain AMMs +- Support for tapping straight into exotic tokens as solvers abstract away intermediate steps like depositing, minting, and staking +- Tighter spreads from private market makers thanks to fast settlement of off-chain orders +- Increased gas efficiency as all trades are credited directly to user accounts without withdrawals or deposits into an exchange contract +- Increased security as funds can only be transferred if a trader has approved the contract and signed an order to sell the given token for another +- A guarantee that the limit prices and amounts of any given signed order will always be satisfied +- Signed orders have an expiry date and they can be cancelled on-chain, preventing exploits where orders can be re-executed by relying on old approvals +- Only solvers subject to slashing can execute the batch auction settlement +- Fair, decentralized settlement in which an open competition for order matching replaces a central operator or a constant function market maker +