a month ago
Intent-based architecture is gaining significant traction as a novel way to improve on-chain trading in decentralized finance (DeFi). By focusing on what users intend to achieve rather than requiring them to specify every detail of a transaction, this new approach is reshaping how blockchain interactions take place. Let’s explore what intent-based architecture is, how it enhances DeFi trading, and how Orbs is applying it to innovate the Liquidity Hub and Perpetual Hub.
At its core, intent-based architecture allows users to define their desired outcomes without detailing every action needed to achieve them. This abstraction layer shifts the complexity from users to protocols, allowing for a simpler, more accessible user experience. Instead of interacting directly with various blockchain layers, users can express intents such as "swap this token for the best price" or "borrow against my assets at the best available rate." The infrastructure then executes these intents, managing the underlying details automatically.
By utilizing intent-based systems, DeFi platforms aim to minimize friction for users, making on-chain trading more intuitive and reducing the chance of human error. As such, this approach can also help optimize transaction paths, reduce gas costs, and ultimately create a more efficient marketplace.
For more background on intent-based architecture, these resources provide excellent insights:
In traditional DeFi, users must manually decide every aspect of a transaction: selecting the platform, determining the path, setting slippage limits, and so forth. Intent-based architecture transforms this process by letting users specify their desired outcomes. The protocols handle the rest—finding optimal liquidity routes, choosing platforms, and managing any interactions needed to fulfill the user's goal.
This architecture paves the way for greater automation and improved efficiency in trading. It not only makes the experience smoother for less tech-savvy users but also provides opportunities for more sophisticated arbitrage opportunities by automating and optimizing actions that would otherwise need manual intervention.
At Orbs, we leverage intent-based architecture to enhance our offerings in both Liquidity Hub and Perpetual Hub. These protocols are designed with a strong focus on empowering users through simplicity while maximizing efficiency.
Liquidity Hub
Liquidity Hub utilizes intents to allow users to seamlessly swap assets without needing to know the specific source of liquidity. Users simply express their intent—such as "I want to swap asset A for asset B"—and Liquidity Hub finds and utilizes the optimal liquidity source to fulfill that request, simplifying the process for the user. Liquidity Hub is an Orbs Layer-3 powered protocol, bringing CeFi-level execution to DeFi, ensuring a smooth and efficient experience.
Perpetual Hub
Perpetual Hub similarly applies an intent-based approach, where Orbs operates a decentralized hedger that takes the other side of user trades without users needing to know the source of liquidity. This allows traders to define their desired outcomes, such as opening a long position or setting a take-profit level, while Perpetual Hub manages execution, ensuring efficiency and competitive pricing. Perpetual Hub is also an Orbs Layer-3 powered protocol, bringing CeFi-level execution standards to DeFi and making it easier for more users to participate in the space with confidence.
Our implementation of intent-based architecture is geared toward making DeFi trading more approachable for a broader audience while ensuring that power users get optimal outcomes in terms of efficiency, costs, and speed. By removing the friction from the process and powering these protocols with Orbs Layer-3, we're confident that Orbs' Liquidity Hub and Perpetual Hub can provide a cutting-edge, user-friendly experience for traders of all levels. Our vision is to bring CeFi-level execution quality to the DeFi ecosystem, ensuring a smooth, efficient, and seamless trading experience.
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