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Perennial Launches Innovative Intent Layer to Address DeFi Liquidity Fragmentation

2024-12-04 11:06
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Perennial has officially launched Perennial Intents, a new intent layer designed for perpetual futures, aimed at integrating decentralized finance (DeFi) fragmented liquidity and providing a centralized exchange-like experience on-chain. By connecting on-chain and off-chain liquidity sources, Perennial Intents brings deeper market liquidity, superior trade prices, and an integrated trading experience, driving the development of the DeFi industry.


Addressing the DeFi Liquidity Fragmentation Challenge


「The emergence of Perennial Intents comes at a critical juncture in DeFi development,」 said Perennial founder Kevin Britz. 「Despite the continuous growth of DeFi, on-chain trading accounts for only a small fraction of the cryptocurrency order flow, and this liquidity is spread across hundreds of L1 and L2 networks. The rise of application chains and standalone AMMs has led to over $10 million in total value locked across 100+ chains (DeFiLlama data), but each has formed a separate financial system. This fragmented liquidity has brought many issues to trade execution, such as increased transaction costs, exacerbated slippage, and limited leverage opportunities.」


By integrating order flow from different sources, Perennial Intents aims to break the liquidity silos. Unlike application chains or AMM pools, the intent layer integrates multi-party liquidity into a unified trading framework to create a more efficient market.


The Hybrid Model of DeFi's Future


While intent layers are not a new concept in DeFi, Perennial Intents introduces a hybrid model that combines off-chain order matching with on-chain AMM settlement. Perennial states that this model can simplify trading through intent-based off-chain order matching and ensure efficient on-chain AMM settlement, providing traders with the best prices. At the same time, liquidity managers can dynamically adjust funds without lengthy collateralization, further enhancing market depth and efficiency.


One-Click Trading and the Perennial Petals Plan


This release also introduces two new features: one-click trading and the Perennial Petals rewards program. Users can now achieve seamless trading with just one collateral account, while the Petals program rewards user trading activity, offering double points in the early stages.


The Arbitrum team has expressed excitement about this release, particularly noting the transformative potential of intention-based derivatives. "Perennial's intention-based derivatives have fundamentally changed DeFi by allowing users to define their transaction objectives, achieving a more efficient and personalized trading experience," said Peter Haymond, Senior Partnerships Manager at Offchain Labs.


About Perennial


Perennial is a DeFi-native derivatives protocol designed to provide a liquidity backbone for DeFi. With support from top investors like Polychain, Variant, and Archetype, Perennial has facilitated over $28 billion in trading volume. Its ecosystem continues to expand and is closely integrated with platforms like Kwenta, Siren, Rage Trade, and Cryptex Finance.


For more information, visit the Perennial website or join the Discord community.


Contact Information

Marketing Director

Lucas Terry

Perennial

lucas@perennial.finance


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