CowSwap has announced its airdrop rewards for its users. Cowswap governance token vCOW will be available to claim from February 11. Let us know a brief on what is cowswap, how to claim COW token airdrop, and price prediction of COW token.
What is CowSwap?
Cowswap is a decentralized exchange or trading protocol on Ethereum and Gnosis chains. Cowswap works similar to Uniswap but the underlying mechanism is different.
Uniswap, Sushiswap, and DEXs are AMM(Automated Market Maker) protocols. Users provide liquidity to certain trading pairs and earn fees if anyone swaps in those trading pairs.
Cowswap protects users from MEV(Miner/Maximum Extractable Value) using batch auctions. Cowswap also allows to buy and sell tokens using gas-less orders that are settled among its users or other liquidity aggregators.
MEV or Maximum Extractable Value is the maximum amount of fee a miner can earn by including, excluding, or replacing transactions and front-run transactions of other users.
An example of an MEV is, suppose I have found an arbitrage opportunity in a trading pair on two different DEXs, and want to make a trade. Now these people who are called searchers, run algorithms or bots on the blockchain data to find trades like mine. They send a transaction with much higher gas fees so that they profit from the arbitrage opportunity and my trade won't even take place.
Cowswap lets you make MEV protected swaps, which means your trade won't get sandwiched. It means, if you want to buy some coin on a DEX like Uniswap or Sushiswap, bots often try to buy just before you and sell after your trade is executed, sandwiching you and profiting by the price change. Cowswap protects you from this.
Cowswap uses something called CoW(Coincidence of Wants) and finds out two traders who have each other wants. If it cannot find two such users, it finds similar trades from other liquidity protocols to make trades happen. This reduces fees and slippage.
Cowswap has been rolling out new features and constantly updating its protocol. Cowswap has recently announced their COW token airdrop. We will discuss the step-by-step procedure to claim your COW token airdrop and the price prediction. For now, you can claim their governance token vCOW, which can be swapped for COW tokens later.
You must have used CowSwap before January 10. There is a variety of eligibility requirements which you can check on their Twitter thread.
Claim CowSwap(vCOW) Airdrop
1. Firstly, you can claim directly from the CowSwap home page. Go to CowSwap claim page and connect your Metamask wallet.
2. You can find the vCOW button on the top right. Click it and it shows the total tokens available to claim. I have used CowSwap on the Gnosis chain, so I have to claim on the Gnosis chain.
3. Now click claim, and there were almost no fees to claim on the Gnosis chain. If you have less than 10,000 COW tokens to claim, claim them on the Gnosis chain.
4. You have successfully claimed your tokens. The tokens aren't transferrable yet and you cannot sell them either. It will be available soon after the decision taken by the DAO.
COW Token Price Prediction
CowSwap has a unique technology. It is very much different from current DEXs and dex aggregators in the space. The MEV protection adds much value to the CowSwap. CowSwap had a trading volume of $6 billion in January 2022 which is very less compared to Uniswap or Sushiswap.
At launch 150 million COW tokens will be in circulation out of total 1 billion tokens. 40% of the supply will be in a 4-year vesting contract. We cannot compare CowSwap to other liquidity aggregators like 1inch.
However, the market cap of 1inch is over $700 million. CowSwap is a better protocol than 1inch. Assuming a market cap of $1 billion and an initial circulating supply of 150 million COW tokens, the price of each COW token will be well over $6.
Comment how many tokens you have received in the airdrop and your price prediction.
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