CoW Swap
How Coinshift users can create limit orders to swap tokens on CoW Swap.
Last updated
How Coinshift users can create limit orders to swap tokens on CoW Swap.
Last updated
CoW Swap, built on the CoW Protocol, acts as a decentralised exchange (DEX) aggregator on the Ethereum blockchain. It offers you the best trade prices by leveraging multiple DEXs and Automated Market Makers, effectively enhancing price efficiency and liquidity in the decentralised finance ecosystem.
Key benefits of using CoW Swap via Coinshift apps for a Treasury Manager include the following:
Efficiency- CoW Swap's limit orders enable automatic transactions at desired prices, crucial in a multi-sig process
Streamlined Batch Processing- With batch transaction capabilities, Treasury Managers can approve and swap tokens simultaneously, enhancing operational efficiency and reducing gas costs
Risk Management- Protection against MEV attacks reduces transaction risk
Liquidity- Access to all on-chain liquidity ensures smooth transactions as it allows you to make transactions more easily and quickly due to the access to a large pool of funds
Fair Pricing- Decentralised and competitive order settlement ensures fair prices, beneficial for treasury managers who are responsible for managing and overseeing a company's financial operations
CoW Swap's limit order feature offers an effective solution to control trading prices, especially useful in a multi-sig process like with Coinshift where not all Signers may be available at once, potentially leading to price slippage. Limit orders prevent this by only executing at the user-specified price.
We will now outline the process of how Coinshift users can interact with CoW Swap directly from their Safe using Coinshift Apps.
From your Coinshift dashboard navigate to the Apps section.
Locate and click on CoW Swap within the Apps section.
A window will appear showing the list of networks the dApp is live on and supported by Coinshift. You can choose a Safe belonging to any network supported by CoW Swap.
Select the Safe (highlighted below) you wish to work with and click on Open App to establish a connection between your selected Safe and CoW Swap.
Limit orders allow traders to buy or sell tokens at a predetermined price or better.
In a buy limit order, a trader sets the maximum price they are willing to spend on a particular token. On the other hand, a sell limit order enables a trader to fix the minimum price they are comfortable accepting for their token. This differs from market orders, where tokens are bought or sold at the most competitive price currently available in the market. Refer to this link to learn more about the limit orders in CoW Swap.
To place a limit order, navigate to the Limit tab.
Then, select the token and the amount you wish to sell, as well as the token you wish to receive. CoW Swap will provide a calculated return based on your input.
Set a limit price at which you wish to sell and an expiry date for the order.
Note that, you do not need to trigger separate transactions to approve and swap tokens. You can simply perform these two activities in a single transaction.
Click on Review limit order.
Finally, check the limit order details i.e. Limit price, Order duration, select the Order type (Partially fillable, Fill, or Kill), and confirm the order by clicking on the Place limit order button.
This will prompt a proposal on Coinshift. You can add any necessary notes and labels if required.
Note that, transaction details are presented in a clear, human-readable format (see screenshot), providing essential information for other Safe Signers to review.
You can click on the link next to the Order status (for ex, Pending) to view the complete status on CoW Explorer without having to visit the dApp.
A proposal will be created for the designated Signers to either Approve or Discard as necessary.
Signers can take one of three actions on a proposal:
Proposal Rejection- If any Safe Signer rejects the proposal, it will be discarded Off-Chain.
Proposal Approval and Execution- If the number of votes in favor of the proposal meets Safe's required threshold, the transaction will be submitted to the network.
On-Chain Transaction Rejection- Even after a proposal has been approved, it can still be turned down in the on-chain stage. This can happen if a Safe Signer initially approves the proposal, moving it into the on-chain queue, but other Safe Signers decide to use the On-Chain Rejection option to stop the transaction.
The proposal has received the necessary signatures, as shown in the screenshot below, and the transaction will be submitted to the network.
You can select the Order status link (Order expires as indicated above) to directly track the order's status (Pending, Open, Fulfill, Expired) within the CoW Explorer.
