What Are Intent-Based Transactions in DeFi?
Key Takeaways
Intent-based transactions let users specify what they want to achieve, not how to execute it.
Execution complexity is handled by third-party agents called solvers or fillers.
This approach improves UX, reduces fees, and offers protection against certain MEV attacks.
Trade-offs include potential centralization and limited transparency in solver execution.
Overview Intent-based transactions simplify DeFi by allowing users to express a desired outcome (e.g., minimum price or amount received). Instead of manually managing routes, gas, and liquidity, users submit an intent, and competing solvers find the most efficient way to fulfill it.
How It Works
1. User Intent: The user signs a message defining the desired outcome.
2. Solver Competition: Solvers compete off-chain to find the best execution path.
3. On-Chain Settlement: The winning solver executes the trade, often covering gas fees upfront.
Benefits
Better UX: Fewer failed transactions and gasless swaps.
MEV Protection: Reduced exposure to front-running and sandwich attacks.
Improved Pricing: Access to aggregated on-chain and off-chain liquidity.
Examples
CoW Protocol, UniswapX, 1inch Fusion, Across Protocol
Conclusion Intent-based transactions aim to make DeFi more intuitive and efficient by abstracting execution complexity. As adoption grows, they could enable cheaper, safer, and more user-friendly decentralized trading.
