Introduction
dappOS is committed to building a complete Web3 intent layer to help users simplify operations and achieve institutional-level execution efficiency. The three core components of the Web3 intent layer are: operation, asset, and transaction. Previously, dappOS has launched the Intent Operating System (IntentOS) and Intent Assets, achieving the intentification of operations and assets. Based on these technological accumulations, dappOS now launches the Intent Exchange IntentEX to further help users realize their trading intentions and improve 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 transaction execution speeds and lower costs, providing an experience close to that of centralized exchanges (CEX).
I. Background
The current market is in a craze for new assets and MEME, with users having strong on-chain trading demands. However, many existing on-chain exchanges struggle to provide sufficient liquidity for users, have slower execution speeds, and higher fees. These issues severely affect 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 the full market liquidity for that asset within a single exchange.
The emergence of the intent trading exchange IntentEX solves the issues of liquidity, trading costs, and trading efficiency, truly helping users realize their trading intentions.
II. Principles of IntentEX
The core design innovation of intentEX is that, based on traditional order book exchanges, it additionally designates users' limit orders as intent tasks, entrusted to nodes in the dappOS intent execution network for execution, allowing nodes to complete trades on any chain. This design not only fully leverages the liquidity advantages of professional institutions, making the tokens in intentEX essentially possess better liquidity than all CEXs and DEXs, but also provides users with faster transaction speeds and lower execution fees.
2.1 Publishing Intent Tasks
When users place limit orders on intentEX, it is equivalent to publishing an intent task in the dappOS intent execution network. Matching nodes in the network will assign this intent task to the most competitively strong service node. When selecting service nodes, matching nodes will consider various factors such as the node's margin, execution costs, execution speed, and how many orders the node is willing to accept for prices deviating from the order book.
After the user completes the signature, the service node that confirms the receipt of this intent task will promise a number of orders that guarantees the user can successfully complete the transaction, based on its own situation. Due to the constraints of the OMS mechanism in the dappOS intent execution network, once the service node completes the signature and confirms the exclusive transaction quantity, it will be liquidated if it is ultimately not fulfilled. Therefore, at this stage, the user can consider that the orders promised by the service node have already been completed, and there is no need to wait for the final on-chain confirmation. When the user quotes near the order book, the service node tends to commit to completing all orders, allowing the user's order completion speed to exceed the block speed of the public chain itself.
2.2 On-Chain Order Processing
After fulfilling the commitment, the service node will complete the order processing on-chain according to 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. Orders that fail to execute at this stage will enter the next stage.
Node Exclusive Fill: The remaining orders will be exclusively filled by this service node within a certain time frame. If the number of orders promised to the user by the service node is not fulfilled in the internal fill stage, the service node must fill them on its own, otherwise, it will face liquidation in the dappOS network. The service node can also additionally fill more orders than it originally promised at this stage.
Open Order: The 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 the number of orders it promises to help the user complete is too low, its competitiveness weight in matching nodes 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 transactions faster.
2.3 A Specific Case
To facilitate readers' understanding, here is a specific scenario as an example - suppose the sell one total amount of the $A token sell order book in intentEX is 990U, with a price of 9.9U; the sell two total amount is 1010U, with a price of 10.1U.
At this time, the user initiates 300 limit buy orders of 10U, and this buy order will be published as an intent task in the dappOS intent execution network, where matching nodes will assign this task to the currently optimal service node.
Assuming a service node successfully competes for this intent task, it needs to commit to the minimum number of orders it will help the user complete (for example, 250 $A buy orders). The specific amount of this commitment generally relates to the node's strategy and the current order book depth of the $A token in all other trading markets. For instance, the node may commit to helping the user complete at least 250 buy orders because the intentEX order book currently has 100 sell orders that can be executed immediately, and after observing all other DEXs and CEXs, it found 150 $A tokens with costs below 10U after considering relevant fees.
From the user's perspective, 250 of the 300 limit buy orders have already been completed when the service node submits its commitment to the network, and this completion speed exceeds the public chain's block speed. In this example, the order book depth of $A is not large, but in more cases, when the order book depth is sufficient, nodes will commit to helping users complete all orders near the order book, allowing users to find that all their orders can be executed immediately.
Next, the service node will execute trades according to the following process:
Internal Fill
Out of the 300 limit buy orders of 10U from the user, 100 will match with the existing 100 sell orders of 9.9U in intentEX and be executed directly at the price of 9.9U.
Node Exclusive Fill
Since the node has committed to helping the user complete at least 250 orders, it must help the user complete the remaining 150 orders at this stage, otherwise it will face liquidation.
This illustrates the advantages of IntentEX: instead of allowing users' unexecuted orders to remain on the order book, waiting for other market makers to arbitrage, the professional service nodes in the intent execution network directly take on this role. This not only gives users practical access to the liquidity of the entire market regarding the $A token but also allows for faster execution speeds for user orders.
3. Open Order
The last 50 limit buy orders of 10U will appear in the buy order book of the $A token in intentEX if the matching service node is unwilling to complete the transaction.
Generally, this situation only occurs when the user's order price is far from the order book or when the relevant token lacks sufficient liquidity across all trading markets.
III. Core Advantages of IntentEX
1. Institutional-Level Market Liquidity
The professional service nodes of dappOS can observe and match user orders in real-time across all CEX and DEX markets. Therefore, token trading within intentEX enjoys market-level liquidity.
Compared to pure on-chain pricing designs like routers, IntentEX combines both on-chain and off-chain quality liquidity, bringing institutional-level liquidity capture capabilities. As a result, each of the user's orders can quickly access the optimal price source, achieving higher transaction rates and faster execution, enjoying liquidity from the entire market.
Compared to other intent architecture designs, dappOS's unique OMS mechanism allows nodes to accept tasks without occupying capital costs (as long as the intent task can be completed, capital can be used for multiple businesses simultaneously without needing to stake funds like an LP) and reduces the costs of seizing orders. This lowers the overall operational costs for nodes, enhancing the system's operational efficiency.
2. Fast Execution Speed
IntentEX utilizes its full-platform liquidity to provide users with faster execution speeds than conventional on-chain trading through rapid matching of order book prices. The execution efficiency of intentEX benefits from the professional service nodes in the dappOS intent execution network, which can complete signature confirmations within 500 milliseconds from the moment the user completes the signature, even faster than the public chain's block speed. This significantly reduces the waiting time for trades, enabling users to complete transactions more quickly.
Compared to other intent architecture designs, this superior trading speed and smooth experience bring users a more centralized exchange-like convenience.
3. Low Trading Fees
IntentEX, relying on the professional service node network of dappOS, greatly optimizes 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.
IV. Decentralization and Transparency
All transactions on intentEX are publicly recorded on-chain, ensuring the system's transparency and credibility. The decentralized mechanism in the dappOS intent execution network ensures reliable execution of orders, so even if a service node fails, other nodes can seamlessly connect and continue to ensure transaction success. Through this decentralized structure, intentEX provides users with a more stable trading experience without relying on the stability of a single point server.
IV. IntentEX and the dappOS Ecosystem
The intent trading exchange IntentEX is an important part of the dappOS ecosystem, launched by dappOS to help users realize their trading intentions after achieving operational intentification and asset intentification.
The detailed implementation of intentEX based on the dappOS intent execution network has been explained in detail earlier. 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 exchange are actually dappOS's intent assets, namely intentUSD, intentBTC, and intentETH. This way, users can enjoy interest returns even when holding these mainstream assets without trading, without affecting their immediate ability to trade with these mainstream assets. For detailed principles of dappOS's intent assets, please refer to:
https://dappos.gitbook.io/docs/dappos/intent-task-frameworks/intent-assets
