DeFi puts complex financial products in the hands of users and protocols, allowing them to execute simple transactions like a swap – to more complex strategies like a delta neutral stablecoin based on staking yield and rate arbitrage. financing (as was recently done by USDe developer Ethena).
The problem for many users is that there is no perfect protocol or tool to help them execute their specific strategy or workflow. Some users may take to Twitter to ask “Is anyone building what I need?” The bravest can even try to manually tinker with their strategy by clicking buttons and signing transmissions across multiple protocols; monitor everything in a spreadsheet. This is the manual, transactional approach to DeFi. This dismissed a cottage industry of YouTubers like The calculator guy and Taiki Maeda who have gained popularity by making the technically overwhelming accessible through shareable spreadsheets and click-by-click guides.
This is where intentions come in. “Intent-based products move away from the transactional approach of DeFi,” said Aperture’s McDavid Stoddard. The block. In the transactional model, the transaction is “usually too complicated for the end user to fully understand what’s going on,” he said.
Intent-based architectures allow the average DeFi user to access “the types of execution and pricing that were previously only available to well-capitalized prop shops operating with an in-house developer team.” Even a dedicated DeFi user, armed with premium YouTube spreadsheets and tracking, would fail to achieve the level of execution and expressibility possible with an intent-based DeFi UX.
With Aperture Liquidity Intents Solution, built on Uniswap V3, the user declares an end goal for their LP position and the trade is only executed if it matches the user’s desired outcome. A user could, for example, state that they want their liquidity position to rebalance once ETH reaches 3,500 USDC per ETH, rebalancing to a 50:50 ratio within a range of 3,400 to 3,600 USDC and specify the acceptable range of impact on swap prices. and gas costs.
A decentralized network of solvers then develops possible transaction flows which are then simulated and classified. Aperture launched with a centralized solver, with third-party solvers including one of Propeller heads join the network in the second quarter.
In addition to developing its network of third-party solvers, Aperture’s future roadmap includes several other key components for a full-fledged intent-based DeFi UX. An extended language model (LLM) will allow users to express their intent in natural language and see it reflected in a highly readable domain-specific language (DSL) created by Aperture, which can then be passed to solvers as “ declaration » of the user. of the truth.”
Stoddard compares UX to ordering a pizza. “You tell the operator, ‘I want whatever your biggest, meatiest pizza is.’ » The operator will answer you: “Okay, you want our XL pizza for meat lovers? And then the user says, “Yes, that one!” » » Aperture’s UX will allow the user to declare their DeFi intentions in similar terms. “The user will say, ‘I want you to rebalance me to the highest yielding pool,’ and then the Intents chatbot will reflect the highly readable DSL output back to them for the user to observe and confirm.”
This post is commissioned by Aperture and does not serve as a testimonial or endorsement by The Block. This article is intended for informational purposes only and should not be used as a basis for investment, tax, legal or other advice. You should conduct your own research and consult independent attorneys and advisors on the matters discussed in this article. Past performance of an asset is no guarantee of future results.
Disclaimer: The Block is an independent media outlet providing news, research and data. Since November 2023, Foresight Ventures has been a majority investor in The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to provide objective, impactful and current information about the crypto industry. Here is our current financial information.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.