MARKET OVERVIEW
As DeFi and the broader crypto landscape continues to evolve, new challenges like MEV protection, liquidity fragmentation, and deteriorating UX are consistently arising. Intent-based solutions are now emerging as a promising approach to tackle these challenges. From the user’s perspective, suppose Alice wants to trade her USDC on Ethereum for WETH on an L2. Traditionally, Alice would have to go through multiple steps including transferring USDC to her wallet, connecting to a bridge and transferring the USDC to the L2, then connecting to a DEX and executing a swap transaction.The process is complex and time-consuming. With intents that outsource execution to a network of solvers that compete to fill orders, Alice doesn’t need to take multiple steps or worry about how it happens. Intents-based systems simply allow users to specify their “intent”, which determines the end state of the chain — and a network of solvers compete to fulfill the user’s outcome as fast and cheaply as possible. There are two main benefits of intent-based design:
- User experience — Intent-based systems offer a seamless and fast process. Users simply express their intent, and solvers handle the execution. Features like gas abstraction and Just-In-Time (JIT) liquidity contribute to a smooth, "one-click" experience reminiscent of Web2 apps.
