ENS Trade Breakdown
On February 9th, 2023, After a successful governance vote from ENS, CoW Swap processed a large trade for the ENS DAO using the exchange’s signature intent-based trading design and Milkman contract.
Trade Details
ENS DAO sold 10,000 ETH in exchange for USDC in order to reduce its exposure to ETH.
- USD value of the trade: $16,145,549.60
- Slippage tolerance: 2%
- Actual slippage: 0.5%
- Price surplus: $80,992.87
Why CoW Swap?
CoW Swap’s solver competition ensured that ENS received the best possible execution price, even after announcing trade details publicly in a governance proposal ahead of time.
CoW Swap provided several benefits for a trade of this size:
- Protection from attack vectors caused by the delayed execution
- Allowing ENS to create a governance proposal that includes the exact swap parameters and protects the trade with a price checker — guaranteeing that the trade receives some minimum amount determined at the moment of swap execution (not during the creation of the governance proposal)
- Use of the Milkman bot for protection against MEV, slippage, and re-entrancy risk
Milkman
The CoW Grants Program-funded, and Yearn.fi-developed Milkman bot was critical to the ENS trade.
The Milkman bot ensures that trades execute for the real-time price or better by utilizing a price checker, such as a Uniswap v3 pool, Chainlink oracles, or a custom price checker. Instead of setting a slippage tolerance, DAOs can utilize Milkman to determine a maximum percentage deviation from the price checker, guaranteeing that their trade will finalize at a fair market price. Milkman also simplifies governance for trades as DAOs don’t have to define a fixed price re-vote if the market moves significantly.
For this swap, ENS DAO chose to use a Uniswap v3 ETH/USDC pool, with a maximum slippage of 2%, guaranteeing that they would receive no less than the minimum specified in the governance proposal.
CoW Swap: The leader in DAO trading
The largest DAO trades take place on CoW Swap, and the exchange is single-handedly responsible for more than 30% of all DAO trades. Check out CoW Swap for DAOs to learn why DAOs such as Aave, Nexus Mutual, and more trust CoW Swap with their large trades.
If you’re a DAO looking to make a large trade on CoW Swap, get in touch with us on Twitter or through our Discord. You can check out CoW Swap for yourself here.
