CoW, 1inch, Uniswap: Intents and the Future of DeFi Exchanges

A look at the key players in the Intent-Centric Future

This report is cross-posted from

Blockcrunch VIP

Blockcrunch VIP is a premium research newsletter on the most important crypto projects and trends, prepared by top crypto analysts (like yours truly) twice a month. Only posts by the author will be cross-posted to this blog, 30 days after it is posted on Blockcrunch.

---

Since that report on intent-centric architectures by Paradigm, which introduced the concept of “intents” and its related applications, we've witnessed significant advancements by both established and emerging protocols in this often misunderstood direction. DeFi leaders like Uniswap, 1Inch, and CoW Protocol are at the forefront, innovating with intent-centric liquidity protocols that are reshaping on-chain trading dynamics.

In the past, decentralized exchanges (DEXs) have been pivotal in shaping the decentralized finance (DeFi) space, revolutionizing the way assets are traded. By allowing users to seamlessly exchange assets without the need for a centralized intermediary, these platforms have unlocked unprecedented levels of autonomy and flexibility in asset management. DEXs, led by pioneers Uniswap, have facilitated a staggering $3.76 trillion in all time swap volume (across 10 EVM chains tracked by Dune) — a testament to their product-market fit and importance within DeFi.

Source: @hagaetc via Dune

However, as the DeFi space matures, the typical DEX, once the core of any new ecosystem, will gradually play a supporting role to the market leaders evolving into intent-centric protocols — the key to the future of onchain trading.

User-facing interfaces like wallets and DeFi aggregators abstract away the difficulty of navigating various DEX aggregators, which in turn aggregate fragmented liquidity across different DEXs, CEXs, and chains. At the core of this new paradigm are intent-centric protocols, effectively functioning as meta-DEX aggregators.

This report aims to provide an in-depth analysis of the protocols that are increasingly dominating on-chain order flow, with a particular focus on their innovative approaches to enhancing user experience through intent-centric models.

Note: While the report acknowledges cross-chain liquidity aggregators, the focus will be on select Ethereum-based intent-centric protocols based on the author’s discretion. As a disclaimer, the editor is a venture investor in CoW Protocol, but the author of the post has no personal exposure.