Perennial tackles fragmented liquidity with new intents layer

On December 3, 2024, in New York, Perennial unveiled its latest innovation, Perennial Intents, a novel intents layer specifically designed for perpetual futures in decentralized finance (DeFi). This initiative seeks to resolve the ongoing problem of fragmented liquidity that has been increasingly detrimental to the efficacy and usability of DeFi platforms. While DeFi has seen substantial growth in recent years, a large portion of the trading activity remains confined to a limited scope of on-chain environments, leading to inefficiencies in trade executions and higher associated costs for users. Fragmented liquidity, characterized by the division of order flows across a multitude of Layer 1 and Layer 2 networks, has posed a significant challenge in creating a seamless trading experience. Kevin Britz, the Founder of Perennial, emphasized this issue, noting that the majority of crypto's order flow is trapped in these silos, which contribute to negative outcomes such as slippage, unfavorable pricing, and restricted leverage options for traders. By introducing Perennial Intents, the company aims to unify this disjointed landscape into a cohesive liquidity layer, which is intended to create a more effective and satisfying user experience in the trading domain. Perennial Intents offers a hybrid trading model that merges intent-based off-chain order matching with on-chain automated market maker (AMM) settlement. Although the idea of intent-based trading is not entirely new, Perennial’s approach is distinguished by its layered framework, which facilitates order flow across various trading venues instead of isolating it into separate appchains or AMM pools. The structure is designed to improve the efficiency of the trading process, resulting in optimal price execution for participants in the market. Furthermore, the inclusion of solvers allows for dynamic liquidity management, overcoming the traditional constraints of long-term collateral, thereby facilitating access to deeper markets and greater efficiency. In addition to the launch of Perennial Intents, Perennial has introduced several upgrades to enhance the trading experience for users. One-click trading functionality aims to simplify the trading process, making it more accessible for participants. Additionally, the Perennial Petals points program has been established to incentivize user engagement and reward participants for their trading activity. Stakeholders within the DeFi ecosystem, including representatives from Arbitrum, have expressed enthusiasm regarding the potential impact of Perennial’s advancements in the derivatives space, as it aligns more closely with users' specific financial objectives and facilitates a more personalized trading experience. Perennial’s mission to serve as the liquidity backbone for DeFi is further underscored by its partnerships and integrations with significant trading interfaces such as Kwenta, Siren, Rage Trade, and Cryptex Finance. The continued evolution of the Perennial platform through the introduction of innovative solutions like Perennial Intents signals a strategic shift that could redefine trading practices within the DeFi sector and push the boundaries of what is possible in terms of liquidity management and trading efficiency.