Article Reprint Source: Project Dynamics
Introduction
dappOS is committed to building a complete Web3 intent layer, helping users simplify operations and achieve institutional-level execution efficiency. The three core components of the Web3 intent layer are: operations, assets, and transactions. Previously, dappOS launched the Intent Operating System (intentOS) and Intent Asset, realizing the intent of operations and assets. Based on these technological accumulations, dappOS now introduces the Intent Exchange (IntentEX), further helping users realize trading intent and enhancing the key components of the dappOS intent layer ecosystem.
The core advantage of intentEX lies in allowing ordinary users to directly enjoy institutional-level liquidity resources, with faster execution speeds and lower fees, providing an experience close to CEX levels.
I. Background
The current market is in a frenzy of new assets and MEME, with strong on-chain trading demand from users. However, many existing on-chain exchanges struggle to provide sufficient liquidity, execute transactions slowly, and have high fees. These issues severely impact user experience. The core reason for these problems is that the trading liquidity of an asset is often scattered among various exchanges, preventing users from enjoying the overall market liquidity for that asset within a single exchange.
The emergence of the dappOS intent exchange IntentEX addresses the issues of liquidity, trading costs, and trading efficiency, truly helping users achieve trading intent.
II. Principles of intentEX
The core design innovation of intentEX is that, based on traditional order book exchanges, it additionally treats users' limit orders as intent tasks delegated to nodes in the dappOS intent execution network for execution, allowing nodes to complete transactions on any chain. This design not only fully leverages the liquidity advantages of professional institutions, allowing tokens in intentEX to effectively possess better liquidity than all CEX and DEX, but also provides users with faster execution speeds and lower execution fees.
2.1 Publishing Intent Tasks
When a user places a limit order on intentEX, it is equivalent to publishing an intent task in the dappOS intent execution network. The matching nodes in the network will assign this task to the most competitive service node. When selecting a service node, matching nodes consider various factors such as: the node's margin, execution cost, execution speed, and the volume of orders the node is willing to take at a certain price deviation from the order book.
After the user completes the signature, the service node confirming the receipt of this intent task will commit to a number of orders that it guarantees can successfully execute for the user. Due to the constraints of the dappOS intent execution network's OMS mechanism, once the service node finishes signing and confirms the exclusive execution quantity, if it ultimately fails to fulfill it, the node will face liquidation. Therefore, at this stage, users can consider the order portion promised by the service node as already completed without waiting for final on-chain confirmation. When users' quotes are near the order book, service nodes are inclined to promise to execute all orders, allowing user orders to be executed faster than the block speed of the public chain itself.
2.2 On-chain Order Processing
After fulfilling the commitment, the service node will process the order on-chain in the following three steps under system constraints:
Internal Fill: If there are matching orders in the intentEX order book, the system will directly match and execute them. The portions of orders that fail to execute at this stage will move to the next phase.
Node Exclusive Fill: For the remaining orders, the service node will have exclusive rights to execute them within a certain timeframe. If the number of orders the service node promised to execute for the user is not fulfilled during the internal fill stage, the service node must execute them on its own; otherwise, it will face liquidation from the dappOS network. The service node can also execute more orders than it originally committed to during this stage.
Open Order: The remaining orders will be posted in 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 execute a small number of orders, its competitiveness in the matching node will be reduced, making it difficult to receive more orders. This mechanism encourages service nodes to commit to helping users execute more orders and complete transactions faster.
2.3 A Specific Case
To facilitate reader understanding, here is a specific scenario as a case study - suppose the total amount of the highest sell order for the $A token in intentEX is 990U, with a price of 9.9U; the second highest sell order totals 1010U, priced at 10.1U.
At this point, if a user initiates 300 limit buy orders of 10U, these buy orders will be published as intent tasks in the dappOS intent execution network, where matching nodes will assign this task to the currently optimal service node.
Suppose a service node successfully competes for this intent task; it needs to commit to a minimum number of orders it can help the user execute (e.g., 250 $A buy orders). The specific amount of this commitment generally relates to the node's strategy and the current depth of the $A token order book across all other trading markets. For instance, this node may commit to helping the user execute at least 250 buy orders because the intentEX order book currently has 100 sell orders that can be executed immediately, and it has found 150 $A tokens with costs below 10U after observing all other DEX and CEX markets, including related fees.
From the user's perspective, 250 of the 300 limit buy orders have already been executed by the time the service node submits its commitment to the network; this execution speed is faster than the block speed of the public chain itself. In this example, the depth of the $A order book is not very large, but in many cases, when the order book depth is sufficient, nodes will commit to helping users execute all orders near the order book, enabling users to find that all their orders can be executed immediately.
Next, the service node will execute transactions according to the following process:
Internal Fill
100 of the 300 limit buy orders of 10U from users will match with the 100 existing sell orders of 9.9U in the intentEX order book and will be executed directly at the price of 9.9U.
Node Exclusive Fill
Since the node has committed to helping the user execute at least 250 orders, it must help the user execute the remaining 150 orders at this stage, or it will face liquidation.
This showcases the advantages of intentEX: instead of leaving users' unexecuted orders hanging in the order book, waiting for other market makers to arbitrage, the specialized service nodes in the intent execution network directly take on this role. This not only gives users effective market-wide liquidity regarding the $A token but also allows for faster order execution.
3. Open Orders
The last 50 limit buy orders of 10U will appear in the intentEX $A token buy order book if the matching service node is unwilling to complete the transaction.
Generally, such situations only occur when the user's order price is far from the order book or when the liquidity of the relevant token is relatively insufficient across all trading markets.
III. Core Advantages of intentEX
1. Institutional-Level Market-Wide Liquidity
The professional service nodes of dappOS can observe and match user orders in real-time across the entire market of CEX and DEX. Therefore, token trading within intentEX has market-level liquidity.
Compared to designs such as routers that rely solely on on-chain price inquiries, intentEX combines high-quality liquidity from both on-chain and off-chain sources, bringing institutional-level liquidity capture capabilities. As a result, each of the user's orders can quickly connect to the optimal price source, achieving higher execution rates and faster transaction execution while enjoying the liquidity of the entire market.
Compared to other intent architecture designs, dappOS's unique OMS mechanism allows nodes to take tasks without incurring capital costs (as long as they can ensure the completion of intent tasks, capital can be synchronously used across multiple businesses without needing to be staked like an LP) and to handle order grabbing costs, which lowers the overall operating costs of the nodes and enhances the operational efficiency of the entire system.
2. Fast Execution Speed
IntentEX utilizes its platform-wide liquidity to provide users with faster execution speeds than conventional on-chain trading through rapid price matching in the order book. The execution efficiency of intentEX benefits from the professional service nodes in the dappOS intent execution network, which can often complete signature confirmation within 500 milliseconds from the user's signature completion, even faster than the block speed of public chains. This significantly reduces transaction waiting time, enabling users to complete transactions faster.
Compared to other intent architecture designs, this trading speed and smooth experience surpassing public chains provides users with a more convenient feeling closer to centralized exchanges.
3. Low Transaction Fees
IntentEX leverages the professional service node network of dappOS to significantly optimize transaction 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
IntentEX records all transactions on-chain, ensuring the transparency and trustworthiness of the system. The dappOS intent execution network utilizes a decentralized mechanism to guarantee reliable order execution. Even if a service node fails, other nodes can seamlessly connect to ensure transaction success. Through this decentralized structure, intentEX provides users with a more stable trading experience without reliance on single point server stability.
IV. intentEX and the dappOS Ecosystem
The Intent Exchange IntentEX is an important component of the dappOS ecosystem, launched to help users realize trading intent after achieving operational and asset intent.
The previous text has detailed the specific implementation of intentEX based on the dappOS intent execution network. For detailed principles of the dappOS intent 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 trading platform are actually the intent assets of dappOS, namely intentUSD, intentBTC, and intentETH. This way, users can enjoy interest income even when holding these mainstream assets without trading, and it does not affect their immediate ability to use these mainstream assets for trading. For detailed principles of dappOS intent assets, please refer to: https://dappos.gitbook.io/docs/dappos/intent-task-frameworks/intent-assets
