✅Comparison and Advantages of IntentX
Last updated
Last updated
Liquidity is the lifeblood of any financial system, and IntentX brings cheap, plentiful, and secure liquidity to the blockchain.
With this, IntentX offers several order-of-magnitude improvements that results in the most complete and competitive on-chain trading solution.
Compared with existing derivatives decentralized exchanges (DEXs), IntentX offers wide multi-chain deployment, consistently high leverage, the widest pair offering (each with deep liquidity), and the most competitive fees.
Combined with next generation account abstraction UX, IntentX is competitive with centralized exchanges offerings, with the added advantage of self-custody, permissionless access, and trustless trading.
With this, IntentX aims to migrate traditional CEX users on-chain, and offer them a better and more secure trading experience than what's previously existed. Users can experience familiar UX and features from a CEX with all the security and advantages of decentralization.
Intent-based trading provides vastly more efficient use of liquidity. Market makers (solvers) can focus their capital on fulfilling specific trade requests, leading to deeper and more concentrated liquidity.
This is akin to the concept of just-in-time liquidity (JIT), wherein solvers can stream quotes rather than commit capital. Only after a user makes a "request for trade" does the solver commit capital by accepting.
This contrasts with order book systems, where maker orders represent a capital commitment at any given price, constraining market makers from providing deep liquidity on multiple books simultaneously.
In comparison to vAMM systems who rely on a large counterparty LP, IntentX requires no up-front and idle liquidity to execute orders, resulting in orders-of-magnitude improvements in capital efficiency.
At IntentX, we don't rent liquidity; we get it just-in-time to execute orders most efficiently.
Result: IntentX is up to 100x more capital efficient than vAMM exchanges on an available OI / TVL basis.
Because of the low throughput requirement and JIT liquidity features of RFQ trading, IntentX is unconstrained in regards to multi-chain deployment.
Deployment to any EVM compatible L1 or L2 can be done rapidly as long as solvers support the chains. This allows IntentX to establish presence on all major DeFi ecosystems as a "Omnichain DEX".
IntentX effectively bridges liquidity from CEXs on-chain because the solver effectively acts as a "liquidity aggregator", tapping into the most liquid markets to fill trader positions and hedge their exposure. Large trades can cause significant price movements in orderbook trading systems. With intent-based trading, large trades are executed by solvers who can source liquidity from various sources, reducing their price impact on any individual market.
In other words, you can also consider IntentX as a derivatives liquidity aggregator.
Slippage, the difference between a trade's expected and executed price, can be a significant issue in order book systems. With our intent-based architecture, quotes are customized to their specific requests, reducing the likelihood of slippage or guaranteeing price certainty (depending on market or limit order execution).
This results in improved execution and predictability for traders.
With the increased capital efficiency and deep available liquidity, trades can be facilitated with much lower friction. This means traders will pay lower fees on IntentX than on other DEX platforms.
Because the on-chain derivatives market is currently so inefficient, traders have to pay many times greater fees on DEXs than CEXs. By bridging this gap, IntentX will offer traders a more competitive trading environment and allow for the migration of more trading volume from centralized exchanges on-chain, benefiting all actors and the DeFi ecosystem.
IntentX operates on a quote-based system, relying on oracles only for rare dispute resolutions, shielding it from potential oracle manipulation vulnerabilities.
Derivative contract risks are clearly defined on-chain within the bilateral agreement. This ensures a transparent and frictionless exchange of risk between the trader and the solver.
The system's inherent design ensures automatic liquidation in case of insolvency, ensuring trustworthiness.
All of these aspects combine to make IntentX the most performant and best solution to deliver secure, cheap, and plentiful liquidity to the on-chain markets.
This technology will significantly accelerate the adoption of on-chain derivatives, which will eventually become the largest financial market on earth. At its core, derivatives are contracts that transfer risk, not underlying assets, and this is what blockchain (and IntentX) does best.
