Research Summary
The report discusses IntentX, a next-generation over-the-counter (OTC) derivatives exchange specializing in perpetual futures trading. It highlights the platform’s unique intent-based architecture and cross-chain functionalities, which aim to bridge the gap between centralized and decentralized exchanges. The report also mentions the platform’s competitive offerings, including high leverage, a wide range of tradable pairs, and competitive fees.
Key Takeaways
IntentX’s Unique Architecture
- Intent-based Architecture: IntentX’s major innovation lies in its intent-based architecture, which moves away from traditional order books or automated market maker (AMM) models. Traders express their trading intentions, which are then executed by external solvers (market makers), who can plug in centralized exchanges (CEX) liquidity, ensuring competitive quotes and minimal slippage.
- Efficient and Scalable Trading: This model allows for more liquid, efficient, and scalable on-chain trading, bridging the gap between decentralized trading and CEX liquidity. By tapping into this liquidity, IntentX’s architecture enables competitive offerings in the perpetual futures space.
Competitive Edge and Value Proposition
- Competitive Edge: IntentX’s competitive edge comes from its unique intent-based architecture, high leverage (up to 60x), a wide range of pairs (>180 at launch), multichain deployment with sub-accounts, and competitive fees and incentives (trade to earn).
- Value Proposition: The platform offers deep liquidity, capital efficiency through a just-in-time liquidity architecture, lower fees due to the absence of a liquidity provider as a counterparty, less reliance on oracles for quotation, self-custody and permissionless trading, and rapid multichain deployment.
Position Risk Management
- Risk Management: IntentX manages position risks through bilateral agreements that isolate derivative contract risks and guarantee solvency with rule-based liquidation. This ensures trustless operations and a fair, scalable, and risk-free environment.
Market Makers and Quote Execution
- Role of Market Makers: On IntentX, market makers are always on the other side of trades. They constantly get quotes from where they hedge (a CEX) and continuously stream these quotes on the IntentX front end, reducing matching time for orders.
- Quote Execution: IntentX allows market makers to execute the off-chain order prior to the on-chain order in case of any meaningful price divergence, allowing them to be fully delta-neutral from the beginning of the trade.
Omnichain Design and User Experience
- Omnichain Design: IntentX is built to be an omnichain DEX by design, leveraging its architecture to deploy liquidity across multiple networks, without technical constraints or the need to bootstrap liquidity for each pair.
- User Experience: IntentX provides a simple user interface, with the goal of providing a CEX-like user experience on-chain. It offers features like account management dashboard, account abstraction, one-click trading, and easy on-ramp and off-ramp to FIAT.
Actionable Insights
- Understanding IntentX’s Architecture: IntentX’s unique intent-based architecture offers a new approach to on-chain trading. It’s crucial to understand how this architecture works and its potential impact on the DeFi space.
- Exploring the Competitive Edge: IntentX’s competitive offerings, including high leverage, a wide range of tradable pairs, and competitive fees, make it a platform worth exploring for traders and investors.
- Assessing Risk Management: IntentX’s approach to managing position risks through bilateral agreements and rule-based liquidation provides a secure trading environment. Understanding these risk management strategies can provide insights into the platform’s reliability.
- Understanding the Role of Market Makers: The role of market makers in IntentX’s trading model is crucial. Understanding how they operate and their impact on quote execution can provide insights into the platform’s trading efficiency.
- Evaluating User Experience: IntentX’s focus on providing a CEX-like user experience on-chain is noteworthy. Evaluating this user experience can provide insights into the platform’s usability and potential for adoption.
