Intent-based trading leads to changes in the DEX market, bringing new opportunities for user experience and trading strategies.

2025-07-02 01:42:30

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Intent-based Trading and Its Impact on Decentralization Trading Markets

Decentralization exchange ( DEX ) market is undergoing a transformation triggered by "Intent-Based Swap" (. This emerging trading model is reshaping the way users interact with DEX platforms and is expected to have a profound impact on the entire ecosystem.

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Current Mainstream Trading Models

Currently, there are two main trading models in the DEX market:

Automated Market Maker ) AMM ( model: Uses the simple x*y=k formula, allowing users to trade at any time, but with lower capital utilization and issues such as impermanent loss. Representative products include some well-known Decentralization trading platforms.
Inquiry ) RFQ ( Model: Users inquire first, professional market makers quote, and execution is confirmed afterwards. It is user-friendly but has higher requirements for market makers. AMM and RFQ complement each other.

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The Concept of Intentional Trading

In traditional trading, users need to provide complete transaction information. In intention-based trading, users only need to clarify their trading purpose, while the specific execution steps are handled by professional "solution providers" )Solver(. This model allows users to focus on "what they want" rather than "how to execute".

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Advantages and Challenges of Intent Trading

Advantages:

User zero gas fee
Improve order on-chain efficiency
Stronger Composability

Challenge:

Cancelling an order requires on-chain operation.
Direct sale of ETH is not supported.
Difficulty in order tracking
The prediction of transaction results is complex.

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Application Cases of Intent Trading

RFQs and limit orders are essentially simple applications of intent-based trading. There are currently multiple products based on intent-based trading in the market, including specific features of certain well-known trading platforms and the order placement functionality of NFT trading platforms.

Future Development Direction

Intent-based trading not only optimizes existing trading models but also opens up new trading methods. For example, it can serve as a proxy authorization mechanism, allowing professional market makers to operate assets under specific conditions, enabling advanced trading strategies such as grid trading, large batch buying, and time-weighted average price ) TWAP ( trading.

With the continuous development of technology, intended trading is expected to bring more innovations to the DEX market, enhance user experience, and promote the advancement of the entire Decentralization financial ecosystem.

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