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IntentX: A new paradigm for AMM, a derivatives trading protocol led by Magnus Capital

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IntentX promises to make on-chain transactions have a CEX-like experience.

Original Title: "IntentX: a new paradigm in AMM bringing CEX trading on chain"

Original Author: Francesco

Translated by: Luccy, BlockBeats

Editor's Note:

On November 22nd, the derivative trading protocol IntentX announced the completion of a $2.5 million seed round of financing, led by Magnus Capital, with participation from Agnostic Fund, Prismatic Capital, MS2 Capital, Coral DeFi, Contango Digital Assets, Castle Capital, and others.

It is reported that IntentX is a full-chain off-chain derivative market designed to solve the problem of low efficiency in decentralized derivatives. IntentX has released an Open Beta version, providing trading for over 180 perpetual currency pairs. Cryptocurrency researcher Francesco elaborated on IntentX's intent-based architecture and full-chain design, pointing out that although IntentX's design is centralized, the positive factors outweigh the negative ones.

IntentX is an innovative project in the decentralized finance (DeFi) industry. It is a next-generation over-the-counter derivatives exchange that focuses on perpetual futures trading, and redefines this field through its intent-based architecture and cross-chain functionality.

Currently, IntentX has entered the public beta phase. Starting from November 15th, 2023, they plan to fully launch in the first quarter of 2024. At that time, they promise to launch over 180 tradable trading pairs and provide deep liquidity.

IntentX is the culmination of the following technological innovations:

LayerZero, a cross-chain communication protocol.Account abstractionBased on the intent-based architecture, the key challenges in delivering derivatives on the chain have been addressed.

IntentX's main innovation can be said to be its intent-based architecture. It can be said that this approach eliminates the traditional order book or automated market maker (AMM) model.

IntentX traders no longer rely on order books or AMM models, where traders need to use committed funds to execute orders. Instead, IntentX traders can express their trading intentions, which are then executed by external solvers (market makers), who can access CEX liquidity to ensure competitive quotes and minimal slippage.

Through this approach, the model achieves more fluid, efficient, and scalable on-chain transactions, bridging the gap between DEX and CEX liquidity.

By simply leveraging this liquidity, IntentX's architecture has achieved competitive products in the perpetual futures market, such as trading with significant leverage over 180 top cryptocurrency trading pairs and providing incentives for traders.

It also emphasizes self-custody, permissionless and trustless transactions, as well as a user-friendly experience with one-click trading and integrated in-and-out access for DeFi users.

IntentX's ultimate goal is to bridge the gap between centralization and decentralized exchanges by providing competitive products with familiar features and user experience.

The competitive advantage of this platform lies in:

Unique intent-based architecture.

Up to 60 times high leverage

A wide selection of trading pairs (over 180 at launch)

Multi-chain deployment, supporting sub-accounts.

Competitive costs and incentives (obtaining profits through transactions)

IntentX's value proposition includes:

Deep liquidity, achieving the transition from CEX liquidity to on-chain.

Capital efficiency achieved through real-time liquidity architecture: By eliminating external solver pre-commitment liquidity in favor of streaming quotes, higher capital efficiency is provided based on the OI/TVL ratio (no idle liquidity).Due to the lack of liquidity providers as trading counterparts, costs are reduced and value is transferred to token holders and stakers.

There is little reliance on quotes, which are only used in rare dispute resolutions, thereby enhancing the security against oracle manipulation attacks.Self-hosted and permissionless, no KYC required.

Fast multi-chain deployment: no need to bootstrap liquidity.

Therefore, IntentX can provide traders with the best price execution on DEX, minimize slippage, efficient price discovery, and CEX-like liquidity and execution, while maintaining the typical self-custody of DEX.

In addition, IntentX manages position risk through bilateral agreements, isolates risk of derivative contracts, and ensures settlement through rule-based clearing (as specified by market makers). This ensures a trustless operation and a fair, scalable, and risk-free environment.

Here is an actual comparison with other protocols in this field: