Ethereum

Uniswap

WETH

USDC

<ul class="list-ic vertical"> 
 <li> 1 <a>An intent is a message that is signed by a crypto user and expresses ‘what’ is to be done and not ‘how’ to do it. It allows the solver to choose the best method to execute the order.</a> </li> 
 <li> 2 <a>Intent architecture is currently being used for simple orders like private transfers, conditional orders like limit orders, and continuous orders like cost averaging.</a> </li> 
</ul> 
Everyone expresses intent in their everyday lives. If one wants to shop at a mall, they have two options;&nbsp; 
<ul> 
 <li>to take their cart&nbsp; through the shelves and sort for everything they need, or&nbsp;</li> 
 <li>give their shopping list to a sales assistant and let them shop for them.&nbsp;</li> 
</ul> 
In the crypto space, intents work the same way as in the last example. When one creates a transaction, they state ‘what’ they want to trade alongside ‘how’ they intend to trade it. So if they want to buy USDT with 2 WETH, their transaction call will swap 2 WETH for at least 3200 USDT using the 15bps fee USDT/wETH Uniswap pool. The transaction is valid until timestamp 1975421031. This call defines the exact path they want their transaction to take; it must be on the 15 bps fee USDT/wETH Uniswap pool, the 2 WETH must be swapped for at least 3200 USDT, and the call only remains valid if the timestamp does not exceed 19754219031. This creates so many constraints that may prevent their transaction from being executed, like if the price of 1 wETH exceeds $1600 before they could sort for a 15 bps pool on Uniswap or if the timestamp exceeds what they stated.&nbsp; 
Intents are like transaction calls in that they allow one to focus on the outcome and not the process of achieving it. With intent, one states ‘what’ they want to trade and leaves out how it should be done. This is like giving a sales assistant their shopping list. 
<h2 class="wp-block-heading" id="strong-what-is-the-architecture-of-intents-strong">What Is The Architecture Of Intents?</h2> 
Using the previous example, if one wants to create an intent call for that<a href="https://www.thecoinrepublic.com/2023/09/17/5-ways-wirex-crypto-card-revolutionized-the-daily-transactions/" target="_blank" rel="noopener noreferrer nofollow"> transaction</a>, it will be: ‘buy USDT with 2 WETH at the best USDT/WETH price.’ The intent will then be executed by a solver, who will choose the best method to carry out the order. 
To help one understand how the solver works, let us examine the DEX aggregator, 1-inch Classic.&nbsp; 
When a user gives that intent to 1inch, it will take the order and search through the liquidity pools of several decentralized exchanges until it finds a match that is similar to what they want. It will then send them a list of this match (for instance, it can state that 2 wETH is available for 3800 USDT on Uniswap and 4000 USDT on Balancer) to confirm their order before it executes it.&nbsp; 
Now that it is understood how solvers work, let us examine intent-centric networks. 
<h3 class="wp-block-heading" id="strong-example-of-intent-centric-networks-strong">Example of Intent-Centric Networks</h3> 
<ul> 
 <li>Anoma</li> 
</ul> 
Anoma is a proof-of-stake blockchain that accepts orders as intent. These intents are referred to as ‘gossips’ on the network and are shared with Gossip nodes, which sort them to find matching orders. The matched intents are sent to the mempool, where validators verify and send them to the execution layer.&nbsp; 
Anoma allows three types of intent transfers: 
<ul> 
 <li>Transfers involving one asset type</li> 
</ul> 
One can create an intent for a transfer where both the sending and receiving addresses are of the same type. For instance, if they want to transfer 3 ETH to a colleague who has an ETH wallet, Anoma lets them create the intent (send 3 ETH to a colleague), find a matching order in its Gossip Networks, and execute the order. 
<ul> 
 <li>Private transfers involving two asset types</li> 
</ul> 
Let us assume that a colleague can only accept payments in USDC and all they have is ETH. Instead of first swapping their ETH to USDC before transferring to them, Anoma lets them create a single intent order that can cover both actions. 
<ul> 
 <li>Cross-chain intent matching&nbsp;</li> 
</ul> 
Apart from enabling private transfers, Anoma also acts as an interoperable layer that allows multiple blockchains to transfer assets between themselves. So if one has BTC but wants to buy SOL, their friend has ETH but wants BTC, and a colleague has SOL but wants ETH, Anoma can match all intents even though they are all from different chains and make sure that each user’s order is executed. 
<h3 class="wp-block-heading" id="strong-types-of-intent-strong">Types Of Intent</h3> 
1). Simple Intent 
These are intent orders without conditions. They include private transfers like sending 1 BTC to another address and other simpler transactions like buying 1 ETH. 
2). Conditional Intents 
These are intents that place conditions that have to be met for the order to be executed. The current structure of conditional intents is limit orders, which place price thresholds that must be met for execution to occur. An example of limit order intent is: swap ETH for USDT when the price of 1ETH exceeds $2000. Apart from price thresholds, one can also set conditions based on governance decisions (of the network) or wallet balance. 
An intent can also express more than one condition. For instance, the order could buy 3 ETH with USDT when the price of ETH is below $1600, the current proposal on the DAO is approved, and the average yield for lending ETH with USDT is high. All these can be expressed with a single intent. 
3). Continuous Intent 
Intents can also be used to execute continuous actions like dollar cost averaging, re-staking, payment streaming, or placing automated trades. This allows the user to sign these actions using a single signature instead of submitting several transactions. For instance, if one wants to buy 1 ETH at the beginning of every month, they can create an intent to swap USDT to 1 ETH after 210,000 blocks (this corresponds to a month on the Ethereum blockchain as 1 block is created every 18 seconds and 50,000 blocks are minted every week). The solvers will ensure that their USDT balance is enough to be swapped for 1 ETH and that 210,000 blocks have been mined after their last swap. 
<h4 class="wp-block-heading">Conclusion</h4> 
Intent architecture allows developers and crypto users to sign a single order that can achieve a goal with multiple steps instead of creating a transaction call for each step. Development is still being made for the use of intents in wallet top-ups, yield compounding, and intent graphs.

Intent Architecture In Crypto: What Is It And How Does It Work?

Table of Contents

Thecoinrepublic.com

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