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  • Introduction
    • 🔴Welcome to IntentX
    • 💢The Omnichain DEX
    • ⚡User Experience Focus
    • 🌐The Meta Front-End
  • On-Chain Derivatives Overview
    • ❓What Problem Does IntentX Solve?
    • 📊Current On-Chain Derivatives Landscape
    • 💡IntentX Solution & Architecture Overview
    • ✅Comparison and Advantages of IntentX
  • IntentX Platform
    • 📈Trading on IntentX
      • 📖Trading Basics
      • 🏫Trading Tutorials
        • 🏫Web3 Wallet
        • 🏫Account Abstracted Wallet
      • 🌡️Liquidations, Margin Management (CVA), and Account Health
      • 📊Instant 1-Click Trading
      • 🛑Take Profit and Stop Loss
      • 💵Collateral & Cross-Margin Accounts
      • 💸Understanding Funding Rates
      • 💰Pricing Data and the Role of Oracles
      • ↕️Unrealized Profit and Loss (uPNL)
      • 📏Open Interest (OI) and Market Activity
      • 🔐Withdrawal Process and Security Measures
      • 📈Advanced Charts by TradingView
    • 🔢Pair List
    • 🌀IntentX Solver Network
      • 🌀Example Solver Order Flow
    • 🫂Referral Program
    • 📱Mobile and Progressive Web App
  • Launch Details and Roadmap
    • 🛣️2024 Roadmap
  • Tokenomics
    • 🪙INTX Token and xINTX Staking
    • 🔄Trade & Earn xINTX
    • 📅Token Allocation and Release Schedule
  • Research
    • 🧠IntentX Research Lab
  • Technical Docs (WIP)
    • ⚙️Infrastructure Overview
      • 🔩Technical Docs
      • 🌐Sample Solver Docs
  • Additional Information
    • ❓FAQ
    • 🌐Official Links
    • 📃Terms & Conditions
    • 🔎Team and Partners
    • 🔌API's
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  1. On-Chain Derivatives Overview

❓What Problem Does IntentX Solve?

PreviousThe Meta Front-EndNextCurrent On-Chain Derivatives Landscape

Last updated 3 months ago

The current crypto derivatives market trades roughly ~$3T in volume per month, or $97B / day, and makes up to 80% of total crypto trade volumes:

Traditionally, and to this day, 99% of derivatives trading takes place on centralized exchanges.

Centralized exchanges (CEXs) are counter to the DeFi ethos, and have proven time and time again that they cannot be trusted on order flow, frontrunning, custody, security of funds, solvency, etc.

FTX, Binance, and many other prominent, “trusted” CEXs have proven that users and institutions should carefully consider the inherent risks CEXs present.

Not only are there many internal risks associated with CEXs, but external regulatory pressure and KYC requirements are also pushing users and institutions out of CEXs and on-chain.

The solution to these problems lies in the use of blockchain technology to achieve permissionless and trustless financial transactions in a self-custodial manner.

However, current on-chain derivatives exchange products are technologically inadequate to compete with CEXs on liquidity, fees, speed, or user experience.

Currently, only ~1-2% of all crypto futures are traded on-chain:

This is similar to the spot trading volume observed in early DeFi summer (2020) before the innovation of Uni V2, Sushiswap, and other AMM forks ignited continued on-chain adoption.

The on-chain derivatives market is also poised for a similar uptick in growth. However, existing decentralized derivatives exchanges have failed to accomplish this because their trading experience simply cannot compete with centralized exchanges' offerings.

IntentX aims to facilitate the adoption and migration of crypto derivatives on-chain by eliminating existing constraints with key innovations:

  1. Liquidity and Transaction Efficiency: IntentX's unique trading architecture will allow for CEX-like trade execution on-chain at a competitive fee basis.

  2. User Experience Focus: DeFi is currently not user-friendly compared to centralized exchanges. Users unfamiliar with wallets, gas, and contract interactions face friction in migration on-chain. IntentX's innovation in account abstraction, gas management, fiat on / ramps, and one-click trading will allow for retail adoption.

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