BootNode and Cow Protocol Bring MEV-Protected Swaps to Nexus Mutual


BootNode and Cow Protocol Bring MEV-Protected Swaps to Nexus Mutual

With the successful launch of Nexus Mutual V2, we're excited to announce our integration with CoW Protocol (CoW Swap’s underlying trading protocol), which brings maximal extractable value (MEV) protection to trades within the capital pool.

After receiving a grant from the Nexus Mutual DAO treasury, the BootNode team worked with the Foundation to design, develop, and deploy the CoW Protocol integration. Over the course of two months, BootNode completed each of the milestones outlined in their original grant proposal.

With this integration, any capital pool assets traded to match assets and liabilities ahead of claim events or to facilitate investment allocations can benefit from CoW Protocol's batch auctions and coincidence of wants (CoWs).

"Nexus Mutual’s capital pool needed a more flexible, robust way to swap capital pool assets. Integrating with CoW Protocol gives us enhanced functionality and the comfort we need to execute trades safely and securely." - Hugh Karp

CoW Protocol Powered MEV-Protection

CoW Protocol allows Nexus Mutual to place trade orders, which are combined with other user orders off-chain in a batch auction. Solvers–anyone who submits an order settlement solution for a batch–compete to provide optimized order matching solutions in a decentralized process.

By using batch auctions, CoW Protocol can:

  • Provide the best prices and save money on fees and slippage
  • Achieve the same uniform clearing price for all trades in one block
  • Match peer-to-peer trade orders through CoWs (Coincidence of Wants)
  • Reduce losses due to MEV (e.g., frontrunning, sandwich attacks, etc.)
  • Execute gasless trades (fees are paid directly in the sell token and not with ETH)

Now, Nexus Mutual can execute efficient trades within the capital pool by combining off-chain interactions (CoWs) with on-chain interactions, all in the same transaction, thanks to CoW Protocol's batch auctions.

“It is of the highest importance for CoW Protocol to collaborate with DeFi protocols to provide efficient and reliable on-chain trade execution service. The integration with Nexus Mutual’s capital pool, allowing MEV protection and best execution of trades is a great demonstration of the shared mission and values of CoW Protocol and Nexus Mutual" - Chen Magen, CoW Protocol

Nexus Mutual Builds with BootNode

BootNode is a team of web3 builders that accelerate the development and adoption of decentralized protocols, applications, and networks. BootNode's engagements are unique as BootNode takes risks by receiving part of its compensation as a participation in the business, building solid and sustainable long-term incentives alignment.

“As with many other protocols and users, Nexus Mutual was a target of MEV. We identified that CoW Protocol was the perfect fit to improve trade execution and be protected against MEV at the same time.

Nowadays, every developer out there should design the protocols considering MEV protection from the get-go. And if a DEX is required, COW is one of the best, given its decentralization, trades outcomes, and protocol-level integration capabilities" - Manuel Garcia, cofounder and CEO of BootNode

In February 2022, BootNode outlined a grant proposal to develop an integration with CoW Protocol and implement an updated SwapOperator contract. After discussion and review, the proposal was put to a Snapshot vote, which passed with overwhelming approval.

Throughout the development process, BootNode was diligent in their collaboration with the Nexus Mutual engineering team. Our engineers were impressed with the quality of BootNode's work and hired them to assist with testing the Nexus Mutual V2 contracts. Their team played an important role in identifying bugs and improving the security of the V2 codebase.

"We’ve been extremely impressed with BootNode. They have the experience within the DeFi ecosystem and understand all the key solutions, which helped us expand our development capabilities with minimal friction." - Hugh Karp

BootNode is now focused on developing covered vaults–natively covered ERC-4626 vaults that automatically buy cover for all deposits using a portion of the yield generated from the underlying strategy. With covered vault infrastructure, DeFi protocols will be able to protect user deposits without requiring individual users to buy cover.

We are building the next generation of on-chain protection with the help of BootNode's industry-leading talent.

About BootNode

BootNode is a team of web3 engineers who have been building dApps and protocols for more than six years. Some of its receding projects are Lyra Finance,, Gelato Network, The Graph Protocol, Gnosis Chain, Paraswap, BarnBridge (FIAT), Connext Network, MetaStreet, Kwenta perps, AGAVE, and more.

BootNode contributes to teams and projects that unlock consumer application use cases at the intersection of infrastructure, DeFI, and NFTs.