Intent-Based Trading Revolutionizes On-Chain Swaps

Intent-based trading is shaking up the way users make on-chain swaps, allowing them to specify their desired outcome without dictating the route. This approach frees solvers to choose the best path and can lead to better prices.

The process works by publishing a declarative order, known as an intent, which describes the end state the user wants to achieve. The intent specifies the tokens involved, the minimum amount received, and a deadline for completion. Solvers then compete to fulfill the intent, searching across multiple DEXs, aggregators, off-chain RFQs, and batch matches internal order flow.

This approach has been implemented on several chains, including EVM, where CoW Protocol and UniswapX are live with intent-based trading. On NEAR, Confidential Intents have rolled out to builders, allowing for confidential execution and reducing MEV leakage. The benefits of intent-based trading include improved prices, reduced slippage, and increased privacy.

However, there are also risks associated with this approach, including approval misuse, solver centralization, failed auctions/latency, and opaque fee splits. Users should carefully review the fees and surplus policy before submitting an intent.