Perennial Unveils a Novel Intent Layer for Perpetuals – Solving DeFi's Fragmented Liquidity Problem

New York, United States, December 3rd, 2024, Chainwire By sourcing liquidity from on-chain and off-chain venues, Perennial Intents is delivering deeper markets

DeFi derivatives platform Perennial has announced the launch of a new “intents” layer for perpetual futures, designed to unify DeFi's fragmented liquidity and provide a centralized exchange trading experience on-chain.

Announced on Friday, Perennial Intents will source liquidity from both on-chain and off-chain venues to create deeper markets, better prices, and a unified trading experience.

“Perennial Intents arrives at a pivotal time for DeFi,” said Kevin Britz, founder of Perennial. “Only a fraction of crypto's order flow happens on-chain, most of which is fragmented across hundreds of L1s and L2s. The rise of appchains and isolated AMMs has led to over 100 chains with $10M+ in TVL (DeFiLlama), each operating its own siloed financial ecosystem. This fragmented liquidity leads to worse trade execution, with higher costs, increased slippage, and limited leverage opportunities.”

According to the Perennial team, the new intents layer will consolidate order flow into a unified liquidity layer.

“Instead of fragmenting liquidity into silos like appchains or AMM pools, intent-based trading integrates order flow across multiple venues, creating a more cohesive and efficient system,” the team explained.

While intents are not a new concept in DeFi, Perennial Intents is introducing a layered model that combines intent-based off-chain order matching with on-chain AMM settlement.

“This model pairs intent-based order matching with on-chain AMM settlement, creating a hybrid system that streamlines trading,” the team said. “Perennial claims this approach guarantees optimal price execution for traders while enabling solvers to dynamically manage liquidity without long-term collateral constraints—ultimately unlocking deeper markets and greater efficiency.”

In addition to Perennial Intents, the launch also includes two other upgrades: one-click trading and the Perennial Petals points program.

“Traders can now enjoy seamless trading with a single collateral account, while the Petals program rewards users with points for their trading activity, with 2x points available during the initial launch period,” according to the announcement.

The team at Arbitrum, where Perennial is integrated, expressed enthusiasm for the launch and the potential of intent-based derivatives.

“Perennial's work with intent-based derivatives is transforming DeFi by aligning market interactions with users' specific goals,” said Peter Haymond, senior partnerships manager at Offchain Labs. “This approach lets users define their desired financial outcomes, enabling more efficient and personalized trading on Arbitrum.”