DeFi
Intentions could exceed the complexity of Defi
Intents provide an intuitive and ultimately simpler user experience in DeFi
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When tools like Midjourney and ChatGPT began to become widespread in 2022, one of the most striking elements was their simple accessibility. By simply typing a few words as a prompt, any average Joe could begin generating works of art or written prose, perhaps far beyond their natural abilities. Ok, maybe some of the results are of dubious quality, but it’s all relatively fun and harmless.
It’s certainly a shocking comparison to the world of crypto and Web3. For years, the need to navigate exchanges and wallets acted as a technological deterrent, while many of the adventurous few who ventured early into DeFi ended up falling victim to unintended consequences with real funds at stake. When fallible humans are responsible for every action, the slightest bug in the underlying code or a mistyped character in an address string can result in crushing, often irreversible losses.
Furthermore, when we consider the proliferation of layers 2, bridges, phenomena such as reprise, and the increasing complexity and sophistication of DeFi markets, it is clear that the problem is neither getting worse nor better. If mass adoption and democratization are the goals, then we need an easier path to get there.
It’s here that intent-based systems come into play. While the average interaction with a blockchain requires the user to do the heavy lifting, intents provide a more intuitive and ultimately simpler user experience. Today, a non-custodial token exchange may require knowledge of issuing blockchains, supported wallets, connection bridges, etc. With intents, all the user needs to know is that they want to swap token A for token B to get an optimal price with the lowest fees. It’s the difference between navigating from point A to point B on foot using a map or taking a taxi and specifying the destination.
However, this is still cutting-edge technology, so there are only a small number of operators on the market at present. This could change depending on the success of a few pioneers. Intentable.io has just launched its new platform, which includes an authoring module allowing users to create their own intent-based workflows, and a walk where these can be exchanged. Intent creators are likely more advanced users or developers of encryption protocols, while the intents they create can be used by anyone. Intentable uses a network of “solvers” that work to monitor incoming transactions and find optimal solutions based on defined intents.
Intent-based systems also enable more complex or sophisticated functionality than would be possible with standard blockchain transactions, where gas fees would quickly skyrocket. For example, implementing Stop Loss & Take Profit automation for DeFi users is complex, especially if they use multiple protocols. However, the underlying network of solvers ensures that user requirements are met, and can do so across multiple protocols or blockchains without user intervention.
Anoma is another example, although it works somewhat differently. It’s not a blockchain; rather, a full stack based on intent architecture to host decentralized applications. User intentions are treated as semi-completed transactions, in which the user specifies constraints on how their activity should be performed. A network of solvers then works to match user intentions with the relevant counterparty in order to finalize the transaction according to the specified criteria. The project aims to become the base layer for multiple composable blockchains built to meet intent-based requirements, and last year raised $25 million in Series A funding to help expand its ecosystem and partnerships.
This may not correspond to several billion that OpenAI has managed to bring in over the past few years, but it’s a significant investment given that 2023 has been a relatively flat year. Additionally, it demonstrates that investors want to see the revolutionary ease of use and widespread accessibility of AI replicated in the Web3 sphere. Hopefully the next generation of crypto builders take notes.