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When it comes to the impact of AI on defi, “intents” and “solvers” are two key areas that are poised to revolutionize the financial landscape. These concepts have the potential to reshape the way we approach financial transactions forever.
At its core, an intent is a directive that translates a market participant’s desired outcome into actionable steps. For example, wanting to buy Bitcoin (BTC) at a specific price is an intent. By utilizing AI-powered solvers, sophisticated algorithms can analyze vast amounts of data to not only execute trades efficiently but also predict market trends, identify opportunities, and tailor trades to an individual’s risk profile and financial goals.
Intents and solvers are terms that have been present in defi for some time, originating from traditional finance (TradFi) and centralized finance (CeFi). Request-for-quotes (RFQs) are examples of intents in TradFi and CeFi, serving large traders by solving problems.
Automated market makers (AMMs) may face challenges with large orders, such as slippage and impermanent loss. However, by using intents, decentralized exchanges (DEXs) can access liquidity from professional market makers, who in turn source liquidity from various sources including centralized exchanges (CEXs) and DEXs.
The integration of AI with defi has far-reaching implications. DEX volume is expected to grow significantly, offering users high-quality execution and a future free from regulatory constraints and counterparty risks. AI-powered intent-driven trading presents a vision of fierce competition and financial innovation across various platforms.
The potential of AI in defi extends beyond trading to areas like lending, borrowing, and wealth management, offering users control over their financial futures. With AI-driven predictive analytics, investors can anticipate market trends and make informed decisions, turning novices into savvy traders.
AI-powered intents and solvers will also impact portfolio management, optimizing asset allocation and mitigating risks in real-time. Traders can adapt to market conditions swiftly, maximizing returns and minimizing risks for defi participants.
AI-enabled automated trading will empower users to execute complex strategies efficiently and accurately, leveraging data-driven decisions for consistent execution. The future of defi lies in intent-driven trading supported by AI, revolutionizing our approach to finance and challenging centralized institutions.
As we look ahead, the integration of AI in defi will continue to evolve, offering new opportunities and possibilities for users. From forecasting market trends to automating trades, AI is set to redefine the way we engage with finance in the years to come.
About the Author:
Ran Yi is the CEO and co-founder of Orderly Network, a company established in 2022 that is transforming trading with its permissionless, omnichain liquidity layer. With a background in traditional finance and experience at institutions like China Merchants Bank and Freddie Mac, Ran graduated from Carnegie Mellon University. Follow Us on Google News.