Intent-based bridges simplify blockchain transactions by focusing on user goals instead of technical steps. They enable innovative applications like cross-chain liquidity management in DeFi, automated payments across blockchains, and other application scenarios.
By streamlining interactions, intent-based bridges offer a secure, user-friendly way to navigate Web3’s complex ecosystems.
What is Intent?
Intent is a user-focused design concept that simplifies processes by letting users focus on their goals rather than the technical steps to achieve them.
In Web3, this concept has become a game-changer, especially after Paradigm’s June 2023 report, “Intent-Based Architectures and Their Risks.” The shift toward “intent-centric” systems is now shaping the future of blockchain ecosystems.
Paradigm defines an intent as a signed set of declarative constraints that lets users delegate transaction creation to third parties without giving up full control.
Source: Paradigm research report
In simple terms, users state what they want: swapping $USDT on Chain A for $ETH on Chain B and the price they’re willing to receive. The system automates the process while ensuring users retain full control over their transactions.
Case of Intent-Based Bridge
In the Web3 world, value transfer underpins DeFi, GameFi, NFTs, and more. However, the decentralized nature of blockchains creates fragmented ecosystems, making seamless cross-chain transfers a significant challenge.
Intent-Based Bridge
To address these challenges and simplify complex cross-chain transfers, Intent-based bridges have emerged as a revolutionary solution.
Unlike traditional bridges that require multiple on-chain interactions, and protection against MEV attacks, Intent-Based Bridges leverage a network of off-chain solvers (or fillers or market makers or relayers) to facilitate asset transfer and transaction execution.
Source: Archetype
This innovative design not only reduces costs and enhances transaction speed but also eliminates the risk of MEV attacks, offering a more secure and user-friendly experience.
Related: Redefining Cross-Chain Liquidity: The Rise of Intent-Based Bridge
Cross-chain Intent: ERC-7683
As a pioneer in intent-based bridges, Uniswap Labs and the cross-chain bridge Across have introduced ERC-7683, a new standard designed to enable simpler, faster, and more secure cross-chain transactions. This approach allows users to focus on their desired outcomes without the hassle of manually bridging tokens or swapping assets across chains.
How it works
- User Order Creation
Users sign an off-chain message defining the parameters of their cross-chain order. This order is then distributed to a network of fillers. - Order Claim and Execution
(a) A filler claims the order and brings on-chain to interact with Settlement Contract
(b) The user’s assets are escrowed through the Settlement Contract. - Liquidity Transfer
The filler executes the transaction on the destination chain, transferring liquidity to the user. - Cross-chain Settlement
The smart contract automatically finalizes the cross-chain settlement process, repaying the filler with the user’s original assets on the source chain.
Source: Uniswap Labs
This streamlined system removes the manual steps users currently face, such as calculating gas fees, finding optimal trade routes, and ensuring transaction security. By abstracting away these complexities, ERC-7683 provides a smoother, more user-friendly experience.
However, it faces a critical challenge: maintaining sufficient liquidity and an active filler network. As the number of chains grows, this issue may intensify, leading to drawbacks such as higher costs, longer waiting times, and increased transaction failure rates.
Applications of Intent-Based Bridges
Intent-based bridges are poised to transform Web3 by simplifying cross-chain interactions and improving efficiency. Below are innovative ideas that showcase their potential to redefine blockchain ecosystems.
1. Streamlined Cross-Chain Liquidity for DeFi
DeFi protocols often struggle with fragmented liquidity across blockchains, leading to inefficiencies and higher costs. Intent-based bridges address these challenges by:
- Automated cross-chain liquidity provision: Users can move assets seamlessly between chains. For instance, someone on Polygon can provide liquidity to a pool on Solana by simply expressing their intent – no manual bridging or swapping required.
- Cross-chain lending: A user can declare, “Bridge my ETH on Chain A and borrow 100 DAI on Chain B,” and the bridge handles the rest, including transferring collateral and executing the loan.
By automating these steps, intent-based bridges optimize liquidity management, reduce user friction, and make DeFi more accessible.
2. Simplified Cross-Chain Payments and Settlements
Managing payments across multiple blockchains can be cumbersome. Intent-based bridges streamline these processes by automating payment flows:
- Global payments: Users only need to express their intent, like “Pay 100 USDT to Merchant A.” The bridge identifies the optimal path across chains, ensuring the merchant receives their preferred token seamlessly.
- Subscription payments: With subscription-based dApps, users can set a recurring intent, such as, “Pay 10 USDT monthly to App Z.” The bridge automates execution across chains, eliminating manual oversight.
These innovations reduce complexity, making cross-chain payments as simple as traditional Web2 methods.
3. Interoperable GameFi Ecosystems
GameFi players often need to move in-game assets, tokens, or NFTs between blockchain-based games. Intent-based bridges enhance this experience by automating asset transfers. For example:
- A player declares, “Transfer my NFT sword from Game A on Chain X to Game B on Chain Y.” The bridge handles the migration, ensuring the asset arrives in the new game seamlessly.
This automation enables a truly interoperable gaming ecosystem, allowing players to focus on gameplay rather than technical barriers.
Closing Thought
Intent-based bridges simplify complex blockchain interactions, making them user-friendly, efficient, and future-proof. Whether for DeFi, payments, or other applications, these bridges empower users to focus on their goals without worrying about underlying complexities.
However, this transformative technology is still in its early stages, with challenges yet to be overcome. At XY Finance, we are dedicated to unlocking the potential of intent-based systems by refining our solutions and exploring this groundbreaking approach.
Our goal is to simplify cross-chain interactions, enhance user satisfaction, and deliver cutting-edge technology that redefines DeFi, setting new standards for convenience, security, and accessibility in the Web3 ecosystem.
About XY Finance
XY Finance is a cross-chain interoperability protocol aggregating DEXs & Bridges. With the ultimate routing across multi-chains, borderless and seamless swapping is just one click away.
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