Testing Fee Models for Long-Term Sustainability: Insights from CoW Protocol

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Per CIP-34, CoW Protocol is testing fee models with a view to long-term sustainability for the protocol and its users. The first test – 50% of surplus on out-of-market limit orders – generated 130 ETH for the protocol and had no observable impact on retention. More info 👇 twitter.com/CoWSwap/status/1747686274025074925?s=20

During the testing period, Jan 23rd - March 26th CoW Protocol generated over 130ETH is revenue. In this time, we saw a normal number of small volume spikes during highly volatile market days. 📊 dune.com/cowprotocol/cow-fees

In March, there was a notable rise in limit orders' popularity. Specifically, CoW Swap limit orders volume increased from $128M in January to $760M in March. 📊 dune.com/queries/1715231/2830822

Over the testing period, ~50% of limit orders come from new users, and month-over-month retention was over 30%. This data is consistent with previous months. We found no meaningful evidence of users moving away from CoW Swap due to the fee model. 📊 dune.com/queries/3563774/5997236

We consider this a successful test. Stay tuned for more info on future fee testing. And remember that users can always find current information on which fees are live in the CoW DAO docs: docs.cow.fi/governance/fees Thank moo! 🐮