Aave adds CoW Swap MEV protection, handling USD $55 billion in assets

Aave Labs has partnered with CoW Swap to integrate MEV-protection and price-improvement technology into its onchain lending platform, allowing users to conduct digital asset swaps, manage collateral, and handle repayments within a single interface.

Platform integration

The integration allows Aave.com users to carry out swaps and loan management activities without the need to move between multiple applications. The use of CoW Protocol's technology introduces protections against MEV (Maximal Extractable Value) losses, common in decentralised finance (DeFi), and optimises transaction pricing for users.

Aave's platform currently holds more than USD $55 billion in deposits. By incorporating CoW Swap's MEV protection and intent-based trading infrastructure, the partnership aims to address hidden costs, such as 'frontrunning' and 'sandwich attacks', that frequently impact users of decentralised exchanges.

User experience

Managing assets now includes integrated features such as asset position swaps, collateral swaps, debt swaps, and the ability to 'repay with collateral'. All these functions are powered by CoW Protocol's solver engine and are accessible directly within the Aave platform. The integration reduces the number of transaction steps and limits the gas fees associated with complex DeFi operations.

"With CoW integrated directly into Aave.com, users can now swap, repay, and manage their positions in one place -- at better prices and with built-in MEV protection, making the experience more seamless and secure," said Stani Kulechov, Founder, Aave Labs.

Flash loan innovation

The collaboration also introduces the first flash loan product specifically designed for intent-based infrastructure. This development enables developers and more advanced users to conduct complex transactions more efficiently, creating opportunities in areas such as arbitrage, refinancing, and transaction automation.

CoW Protocol processes more than USD $10 billion in monthly digital asset swaps and claims to save users millions in gas fees and MEV-related costs. These efficiencies are now being extended to Aave.com's user base. Both companies expect these benefits to result in safer trades, more predictable execution, and improved outcomes for users transacting onchain.

Efficiency and trust

The integration has been in development for nearly two years, with CoW Protocol selected in part for its model of onchain transparency and its solver network, already used by several of the largest DeFi protocols. The collaboration aims to enhance both the trust and efficiency of swaps and repayments carried out on Aave.com's platform.

"This partnership is a milestone for user protection in DeFi. Aave's trust and scale combined with CoW Protocol's intent-based infrastructure will redefine how users interact with liquidity - safely, efficiently, and transparently," said Anna George, Co-Founder, CoW Protocol.

Expansion plans

Plans are in place for Aave Labs and CoW Swap to expand their intent-driven product suite. The goal is to enable users to clearly define their transaction requirements while benefiting from competitive, secure, and efficient swaps organised by CoW Protocol's solver competition model.

Currently, Aave.com users have access to the new asset, collateral, and debt swap features, and can initiate swaps of aTokens via CoW Swap's platform.