Intent-Based Execution is a trading paradigm in digital asset markets where users specify their desired outcome or “intent” rather than a precise, step-by-step sequence of trading actions. This approach delegates the complex optimization of execution strategy to an underlying intelligent system or network of solvers.
Mechanism
A user submits a high-level intent, for example, to exchange a specific quantity of one token for another within a given price range. A specialized solver network or an automated agent then analyzes current market conditions, available liquidity sources, and potential execution paths. It constructs and executes the most optimal series of on-chain and off-chain transactions to fulfill that intent, often involving multiple venues.
Methodology
This approach represents a shift from imperative to declarative trading, prioritizing the desired end state over explicit transactional instructions. It leverages advanced algorithms, often incorporating auctions or specialized market mechanisms, to discover the most efficient and cost-effective execution path. This mitigates issues like Maximal Extractable Value (MEV) and reduces the operational complexity for traders in decentralized finance environments.
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