Dutch CoWs

Dutch orders are a type of order with a high starting price that incrementally goes down with time. This allows users the opportunity to get the max price to be achieved if demand is present, while also improving the chances of being filled over time by improving the price for the buyers if there is still stock to be sold.

If prices were to improve in favour of the user during the Dutch order duration, current implementations that are offchain or onchain dutch auctions, treat the user order as a stale order to be sniped where the user doesnt receive any upside. By building the auction that spans over a series of CoW protocol batches, the solver competition ensures any MEV (or arbitrage) is captured by the user because solvers compete to give any surplus to users.

The utilization of EIP1271 smart orders in CoW protocol ushers a new era of intent based orders that are more expressive, allowing the users to capture more complex strategies or even treasury managers to have a sophisticated trading operations.The framework is somewhat described in this blog post: https://forum.cow.fi/t/automated-treasury-management-methodology/1799

The Dutch order is an open source implementation that can be used immediatley with current CoW framework as a building block within a larger strategy or as a standalone user order.

This project implements a linear dutch auction that takes three inputs (starting price, ending price, duration). The implementation builds upon the composable-cow (https://github.com/rndlabs/composable-cow) conditional orders framework. The project consists of deployed smart contracts on Gnosis Chain, a watch Tower on Gnosis and a forked and modified Cowswap frontend.