Article reprint source: Project Dynamics
Introduction
dappOS is dedicated to building a complete Web3 intention layer to help users simplify operations and achieve institutional-level execution efficiency. The three core elements of the Web3 intention layer are: operations, assets, and transactions. Previously, dappOS launched the intention operating system (intentOS) and intention assets (Intent Asset), realizing the intention-based approach to operations and assets. Based on these technological accumulations, dappOS now introduces the intention exchange IntentEX, further helping users realize intention-based trading and completing a key component of the dappOS intention layer ecosystem.
The core advantage of intentEX lies in enabling ordinary users to directly enjoy institutional-level liquidity resources while having faster trade execution speeds and lower costs, providing an experience close to that of centralized exchanges.
I. Background
The current market is in a surge of new assets and MEME tokens, and users have a strong demand for on-chain trading. However, many existing on-chain exchanges struggle to provide sufficient liquidity for users, with slow execution speeds and high fees. These issues severely impact user experience. The core reason for these problems is that the trading liquidity of an asset is often dispersed across various exchanges, preventing users from enjoying full-market liquidity for that asset within a single exchange.
The emergence of the dappOS intention exchange intentEX addresses issues of liquidity, trading costs, and trading efficiency, truly helping users realize intention-based trading.
II. The principles of intentEX
The core design innovation of intentEX is to take users’ limit orders as intention tasks in addition to traditional order book exchanges and entrust them to nodes in the dappOS intention execution network for execution, allowing nodes to complete transactions on any chain. This design not only fully leverages the liquidity advantages of professional institutions, enabling tokens in intentEX to effectively have better liquidity than all CEXs and DEXs, but also provides users with faster fill speeds and lower execution fees.
2.1 Publish intention tasks
When users place limit orders on intentEX, it is equivalent to publishing an intention task in the dappOS intention execution network. Matching nodes in the network will match this intention task to the most competitively capable service nodes. When selecting service nodes, matching nodes consider various factors, such as: the node's margin, execution cost, execution speed, and how many orders the node is willing to take at certain price deviations from the market.
After the user completes the signature, the service node that confirms receipt of this intention task will promise an amount of orders they can guarantee will be successfully executed for the user, based on their own circumstances. Due to the constraints of the OMS mechanism of the dappOS intention execution network, once a service node confirms the exclusive fill amount after signature completion, if it is not fulfilled in the end, the node will face liquidation. Therefore, typically at this stage, users can consider the committed order portion by the service node as completed without waiting for the final on-chain confirmation. When the user’s quote is near the market price, service nodes tend to promise to fill all orders, allowing user orders to be filled faster than the public chain’s block speed.
2.2 On-chain order processing
After completing the commitment, the service node will complete order processing on-chain under system constraints in the following three steps:
Internal Fill: If there are matching orders in the intentEX order book, the system will directly match them for execution. Portions of orders that are not completed at this stage will move to the next stage.
Node Exclusive Fill: For the remaining orders, this service node will have exclusive execution rights within a certain time frame. If the quantity of orders promised to users is not fulfilled during the internal fill stage, the service node needs to fill them on its own or face liquidation from the dappOS network. The service node can also fill more orders than it promised at this stage.
Open Orders: Remaining orders will be placed on the intentEX order book for other users to trade.
If a service node's execution speed is too slow or it promises to help users complete a smaller number of orders, its competitive weight in the matching node will be reduced, making it difficult to receive more orders. This mechanism encourages service nodes to commit to helping users complete more orders and to complete trades faster.
2.3 A specific case
To facilitate reader understanding, here is a specific scenario as a case study - suppose the sell order book of the $A token in intentEX has a total sell one amount of 990U at a price of 9.9U; the total sell two amount is 1010U at a price of 10.1U.
At this point, the user initiates 300 limit buy orders of 10U, and this buy order will be published as an intention task within the dappOS intention execution network, with matching nodes allocating this task to the currently optimal service node.
Suppose a service node successfully competes for this intention task; it needs to promise a minimum number of orders it will help the user fill (for example, 250 $A buy orders). The specific number of this commitment generally relates to the node's strategy and the current depth of the $A token’s order book across all other trading markets. For example, this node may be willing to commit to helping the user fill at least 250 buy orders because: there are currently 100 sell orders in the intentEX order book that can be filled immediately, and after observing all other DEXs and CEXs, it has found 150 $A tokens with costs below 10U after accounting for related fees.
From the user’s perspective, 250 of the 300 limit buy orders are already completed when the service node submits a commitment to the network, and this completion speed is faster than the block speed of the public chain itself. In this example, the depth of the order book for $A is not significant, but in more cases, when the order book depth is sufficient, nodes will commit to helping users fill all orders near the market, allowing users to find that all their orders can be executed immediately.
Next, the service node will follow the process below for trade execution:
Internal Fill
100 of the user's 300 limit buy orders of 10U will match with the existing 100 sell orders of 9.9U in intentEX and will be executed directly at the price of 9.9U.
Node Exclusive Fill
Since the node has committed to helping users complete at least 250 orders, it must help users complete the remaining 150 orders during this stage, or it will face liquidation.
This is where the advantages of intentEX become apparent: instead of leaving remaining unfulfilled orders on the order book waiting for other market makers to arbitrage, the professional service nodes in the intention execution network directly take on this role. This allows users to effectively have full market liquidity for the $A token, while also enabling their orders to be filled more quickly.
3. Open Orders
If the last 50 limit buy orders of 10U cannot be matched by a willing service node, they will appear in the buy order book of intentEX’s $A token.
Generally speaking, this situation will only occur when the user's order price is far from the market price or when the liquidity of the related token is relatively insufficient across all trading markets.
III. Core advantages of intentEX
1. Institutional-level full-market liquidity
The professional service nodes of dappOS can observe and match user orders in real-time across all markets of CEXs and DEXs. Therefore, token trading within intentEX has full-market-level liquidity.
Compared to designs like routers that purely inquire about prices on-chain, intentEX combines high-quality liquidity from both on-chain and off-chain to bring institutional-level liquidity capturing ability. This way, each of the user's orders can quickly access the best price sources, achieving a higher fill rate and faster trade execution, enjoying full-market liquidity.
Compared to other intention architecture designs, dappOS’s unique OMS mechanism allows nodes to take tasks without occupying capital costs (as long as they can ensure the completion of intention tasks, capital can be synchronized across multiple businesses without needing to stake funds like LPs) and cope with the costs of order grabbing. This reduces the comprehensive operating costs of nodes, increasing the overall system efficiency.
2. Fast execution speed
intentEX utilizes its full-platform liquidity to provide users with a trading speed faster than conventional on-chain transactions through rapid matching of market prices. The execution efficiency of intentEX benefits from the professional service nodes of the dappOS intent execution network, which can complete signature confirmation within 500 milliseconds from the moment a user signature is completed, and even faster than the block speed of public chains in most cases. This significantly reduces transaction waiting times, allowing users to complete trades more quickly.
Compared to other intention architecture designs, this superior trading speed and smooth experience brings users a more convenient feeling closer to centralized exchanges.
3. Low trading fees
intentEX relies on the professional service node network of dappOS, greatly optimizing trading fees, with costs as low as 0.1%, far below the rates of most on-chain exchanges. This makes intentEX a more economical choice for users when trading on-chain.
4. Decentralization and transparency
All transactions in intentEX are publicly recorded on-chain, ensuring the system’s transparency and reliability. The decentralized mechanism in the dappOS intention execution network ensures the reliable execution of orders. Even if a service node fails, other nodes can seamlessly take over to continuously ensure transaction success. Through this decentralized structure, intentEX provides users with a more stable trading experience without relying on single-point server stability.
IV. intentEX and the dappOS ecosystem
The intention exchange intentEX is an important part of the dappOS ecosystem, launched to help users realize intention-based trading after dappOS achieved operation intention and asset intention.
The previous text has detailed the specific implementation of intentEX based on the dappOS intention execution network. For detailed principles of the dappOS intention execution network, please refer to: https://dappos.gitbook.io/docs/dappos/how-dappos-works
In addition, the USDT, BTC, and ETH used in the intentEX exchange are actually dappOS intention assets, namely intentUSD, intentBTC, and intentETH. Thus, even when users are holding these mainstream assets without trading, they can still enjoy interest income without affecting their immediate use of these mainstream assets for trading. For detailed principles of dappOS intention assets, please refer to: https://dappos.gitbook.io/docs/dappos/intent-task-frameworks/intent-assets