Abstract

As the crypto economy has evolved, the underlying blockchain infrastructure has steadily improved, yet user experience remains in its infancy. Enhancing user operations could attract more participants into the blockchain ecosystem, which would drive further infrastructure development and enrich business models, creating a positive feedback loop of growth. The crypto space may reach its “1995 moment” with the emergence of a user-facing killer app or operating system.

The intent sector is working towards this by shifting the on-chain interaction paradigm from “assuming users are experts” to “assuming users are novices,” thereby abstracting away complex operations and logic to offer users a more simplified, convenient, and secure experience. AI could also assist users in realizing their intentions more effortlessly.

This article focuses on dappOS, an intent-based execution network backed by top-tier institutions.

1. Intent: From Usable to User-Friendly — Upgrading On-Chain Experience

Enhancing the Crypto Experience

In the 2020 DeFi Summer, large-scale commercial activities began taking place on the blockchain for the first time. Since then, on-chain business activities have flourished, extending beyond finance into areas like entertainment, NFTs, gaming, and social interactions. Currently, over $90 billion in various assets (excluding NFTs) remain active on several major blockchains, with asset totals nearing $200 billion during the peak of the last bull market. Recent daily transaction volumes have also exceeded $5 billion, reaching over $10 billion per day in March — nearly half of the average daily trading volume on the Hong Kong Stock Exchange.

source: Defillama

Market participants are voting with their wallets, demonstrating the potential of blockchain to support more commercial activities with its promise of “greater freedom and cheaper trust” (see the article “The Fundamental Value of Web3 and How to Invest in It”). This potential is continuously being validated as blockchain becomes a foundation for further commercial activity.

However, despite rapid growth, this is still a nascent market—less than seven years in development, with less than four years of real business expansion. Signs of the industry’s early stage of maturity remain visible. For example, leading blockchain Solana experienced a 30-hour outage as recently as February, mainstream blockchain wallets still require users to back up long mnemonic phrases or private keys, and most sustainable on-chain business models continue to revolve around native blockchain assets, without a true organic integration between off-chain businesses and blockchain.

Looking back over the past few years, the development of smart contract blockchains like Ethereum and Solana, designed to facilitate more human commercial activity, has seen significant progress. Their market values have steadily increased. When it comes to solving the “usability” problem, there are now clear directions and achievable paths. Ethereum’s approach leans left, adopting Rollups and gradually evolving toward modular architecture, with popular Layer 2 (L2) solutions like Arbitrum and Base thriving. Specialized application chains across L2 and L3 have emerged in abundance. On the other hand, Solana’s path leans right, focusing on optimizing performance on a single chain, achieving an average TPS (transactions per second) of over 2,000, with new users and assets continuously emerging on the network.

However, in terms of “ease of use,” we must admit that the overall on-chain experience is still relatively poor. The current user experience might be acceptable for the existing on-chain community of only a few million active addresses (with even fewer active users), but if blockchain is to achieve massive adoption by hundreds of millions or even billions of people, the current experience is far from sufficient.

In July 2023, Paradigm introduced the concept of “intent-centric,” which elevated Web3 experience upgrades to a distinct sector—referred to as the “intent sector.”

In simple terms, “intent” refers to the user’s actual needs. For example, “buying $1,000 worth of Meme Coin $BRETT” is an intent. To fulfill an intent, multiple transactions may be required. The complexity of an intent increases if there are more constraints involved.

In the aforementioned example, if I don’t have enough stablecoins on the Base chain but only hold them on Ethereum, fulfilling this intent would require:

1. Swapping 1,005 USDC for ETH on Ethereum (since Base doesn’t support USDC for gas fees);
2. Bridging ETH to the Base network;
3. Purchasing $BRETT with $1,000 worth of ETH on Base.

That’s three transactions. Behind this series of operations, there’s hidden knowledge, such as knowing which cross-chain bridges are available from Ethereum to Base, which bridge offers the best rates and speed for my assets, how to find and add Base’s RPC info to my wallet, and whether there’s a good aggregator on Base to get the best price for $BRETT. If there isn’t, I’d need to know where $BRETT’s main liquidity resides. For a seasoned blockchain user, these steps may not seem overly complex, as much of this knowledge has been internalized through repeated use. However, for a newcomer, this process can be overwhelming—they may have to follow a tutorial step by step just to complete the process.

In many ways, the current on-chain experience resembles the interaction with computers before the launch of Windows 95. Back then, computers already demonstrated powerful processing and file-handling capabilities, but interaction was primarily done through the CMD command prompt. For users familiar with the underlying logic of computers, this method was simple, direct, and efficient; even today, many tech enthusiasts still prefer it. However, for new users, this was a “nightmare” level of complexity. Personal computers came with thick manuals to guide users through basic operations.

When Windows 95 launched, everything changed. The computer booted directly into a graphical user interface (GUI), where users could perform tasks by simply clicking with a mouse. The advent of the web browser further lowered the barrier for users to access the internet. To some, this shift from command-line interaction to a GUI might have seemed like a minor improvement in user experience, merely a superficial layer over the underlying commands. Compared to hardware upgrades like CPU performance boosts, it didn’t appear as a major technical leap. However, Windows 95 lowered the entry barrier for ordinary users, driving the rapid adoption of personal computers among the masses. As more computers were sold, the cost of Intel CPUs dropped, further improving the performance and experience of personal computers. This created a positive feedback loop that led to the rapid global penetration of computers and the internet, sparking the subsequent tech boom.

Global Internet Usage Trend (Source: world bank)

Looking back, this seemingly “minor improvement in user experience” fundamentally transformed the lives of everyday people and paved the way for the creation of most of the great companies on our planet over the past thirty years, such as Microsoft, Apple, Google, and NVIDIA. This moment is often referred to as the “1995 moment” in the history of the internet and personal computers, symbolizing the dawn of explosive growth.

Although the approval of the BTC ETF represents a positive recognition of the crypto industry by governments and has attracted more users into the space, the majority of these users still only hold cryptocurrencies on centralized exchanges, and their interaction with blockchain technology is mostly limited to simple transfers. In terms of widespread adoption of on-chain applications, crypto’s “1995 moment” has not yet arrived. It likely awaits the emergence of a user-oriented killer application or operating system, and projects within the intent-centric track may very well be key to bringing about this moment.

Intent: One of the Best Use Cases for AI + Crypto

AI has advanced rapidly in recent years, and many believe that 2023 marks AI’s own “1995 moment.” ChatGPT and other chatbots based on large language models have started entering the daily lives of ordinary people, and both the capital markets and the general public’s attention on AI have reached unprecedented levels. The capabilities of large language models show no sign of hitting a ceiling, and we are still unsure of the full extent to which AI’s abilities can be enhanced or how it will reshape various industries. With the release of GPT-4o, the timeline for AI becoming an integral part of our lives appears to have accelerated even further.

One of the most significant discussions in the crypto space over the past year has been the integration of AI. Tokens associated with this trend have seen dramatic price surges. From a business logic perspective, I believe that blockchain-based AI agents represent one of the best use cases for combining AI with crypto, as they make it easier for people to achieve their intent.

This is because blockchain rules are human-defined, with clear boundaries and no black boxes.

AI performs better in blockchain systems due to the clarity of economic rules and the permissionless nature of the system. The risks associated with AI’s randomness are minimized when executing tasks within clearly defined rules. For example, AI has already outperformed humans in chess, card games, and video games because these environments are closed sandboxes with well-defined rules. In contrast, AI’s progress in autonomous driving has been slower because it faces the challenges of an open external environment, where the randomness in AI’s decision-making is harder to tolerate.

Source: Mint Ventrues

In such an environment, as long as sufficient input information is provided, AI will “always find the optimal solution faster than humans” for specific problems, helping people achieve their intent more efficiently.

2. Project Details

2.1 Business Overview

dappOS is an intent-based execution network. From a user’s perspective, they only need to provide their intent to dappOS, and dappOS handles the interactions with various dApps and public blockchains to execute the transactions required to fulfill that intent. In the example mentioned earlier, where the user intends to “buy $1,000 worth of Meme Coin $BRETT,” all the necessary transactions are facilitated by dappOS through the relevant parties. In other words, the user only needs to interface with dappOS, while all interactions with public blockchains and dApps are managed by dappOS.

The ambition behind the name “dappOS” is clear—they aim to become the OS (Operating System) for dApps, much like how Windows 95 became the OS for computers.

Within the dappOS ecosystem, they have built an open, bilateral market. On one side is the developer end (demand side) that caters to users, while on the other side are the service nodes (supply side) that provide intent execution services. dappOS uses an OMS (Optimistic Minimum Staking) mechanism to ensure the quality of services provided.

dappOS Architecture (source)

The key roles and functions within the dappOS ecosystem are as follows:

1. Users: Issue intents. Users need to submit their intent-based on the intent framework provided by dappOS.
2. Service Providers: Execute intent services. After staking a certain amount of dappOS tokens as collateral, service providers can start accepting user intents and earning revenue.
3. Execution Validators: Verify the execution of service providers. If a service provider fails to complete a task as required, the validators have the authority to vote and penalize the service provider.
4. Matchers: Match users’ intents with appropriate service providers.

source

In practice, users send their intents to the matcher via a front-end interaction. The matcher then consults with associated service providers, asking for their quotes on fulfilling the intent and relays these back to the user. If the user agrees with the quote, they can select a service provider, sign the intent, and transfer the necessary resources to the provider for execution.

After the specified time frame, a group of validators verifies whether the task has been completed. If any validator finds that the task wasn’t completed, they can challenge it. The validators then vote through a Proof-of-Stake (PoS) mechanism to reach a consensus. If the consensus confirms that the task failed, the service provider must forfeit their collateral as compensation to the user.

In addition to the core roles, dappOS employs the Optimistic Minimum Staking (OMS) mechanism. This allows service nodes to stake only slightly more than the total value of incomplete intents as collateral (minimum) while continuing to perform tasks before validation (optimistic). When validators successfully confirm the service node’s results, the node receives its earnings. If a failure is detected, the system penalizes the node, and the user receives pre-agreed compensation.

The OMS mechanism aims to balance task efficiency for users, capital efficiency for service providers, and the overall security of the system. It ensures tasks are completed while minimizing the cost for service providers. Furthermore, through this intent-based execution network, ordinary users can benefit from the execution efficiency and cost advantages that professional service providers offer. These providers have unique channels that individual users lack, such as VIP accounts with ultra-low trading fees, aggregated transactions to save on gas costs, and superior on-chain anti-MEV (Miner Extractable Value) capabilities. Additionally, competition among service providers drives down service prices to optimal levels, benefiting users. dappOS’s intent-based execution network empowers ordinary users with the institutional-level access and speeds normally reserved for large entities.

dappOS’s Three Intent Frameworks

1. Intent-based Trading: Helps users achieve optimal spot trading costs.
2. Intent-based Assets: Standardized assets within the dappOS system. A series of equivalent assets are homogenized, with attention to both yield-bearing and trading properties.
3. Intent-based dApp Interactions: As in the earlier example, where the user’s intent to “purchase $1,000 worth of Meme Coin $BRETT” is realized, this framework simplifies interactions with dApps and bridges assets across chains.

The intent-based assets framework smooths over differences between various chains and homogenized assets, significantly reducing the need for cross-chain conversions or swaps between similar assets, thereby enhancing the user experience. Let’s explore examples of the two most common assets in the crypto world: stablecoins and ETH.

• Stablecoins: Users can deposit any USDT or USDC from any chain into their dappOS account and receive intentUSD. This intentUSD can be deposited into various stablecoin projects for automatic yield generation, with a transparent flow of funds for users. While earning interest, the system ensures ease of use: if a user needs to withdraw USDT for a centralized exchange, they can do so directly from intentUSD. Likewise, if a user wants to deposit USDC into GMX as margin, intentUSD can be withdrawn just as easily.
• ETH: Similarly, when users deposit ETH, it converts into intentETH, which automatically earns yield. Users can then use intentETH to purchase assets on any chain, for instance, buying $QUICK on Polygon or $JOE on Avalanche. Moreover, intentETH can be deposited into Aave on Arbitrum for lending services or used as gas on Ethereum and its L2 networks, all depending on the user’s needs.

It can be seen that intent-based assets offer the following advantages:

• Balancing yield and convenience: sDAI generates stable RWA (real-world asset) yield but lacks the liquidity for large-scale transactions. On the other hand, USDT and USDC have broad use cases but don’t generate any yield. intentUSD perfectly combines both benefits.
• Resolving friction in asset conversion: intentETH allows seamless, cost-free switching between ETH (mainnet), ETH (Arbitrum), stETH, and aETH, without incurring any fees.

When compared to other typical yield-generating assets, intent assets offer distinct relative advantages:

• LST or LRT assets: intentETH offers better liquidity without requiring any lock-up.
• sDAI and other RWA-backed stablecoins: intentUSD can be used for transactions at any time.
• Savings products from centralized exchanges like Binance: intent-based assets can easily be used across various dApps.
• Lending platforms like Aave and other DeFi yield platforms: intent assets allow seamless cross-chain usage and are always available for transactions.

In short, the experience provided by intent assets resembles what we’ve encountered with services like “Yu’ebao” in Web2. They strike a new balance between asset profitability, usability, and convenience, offering a superior user experience.

Moreover, improving the user experience could be the key to onboarding hundreds of millions, or even billions, of users into the crypto economy. Currently, the crypto economy is still in its early stages of development. As pioneers, we may have become accustomed to the coexistence of USDT and USDC, mastering how to swap between them at the lowest cost and knowing when to use each asset. However, in the real world, no one thinks we should accept both “JPMorgan dollars” and “Citi dollars,” even though this comparison is quite similar. For the next generation of crypto users, they won’t need to understand technical details like “what’s the difference between L1 and L2?” or “how do I bridge across chains?”—just like they don’t need to understand how the interbank clearing system works. They will only need to meet their needs in a more direct way. This gap in user experience is precisely what projects in the intent-based track are striving to bridge.

2.2 Business Operations and Partnerships

Due to the unique nature of its business model, most of dappOS’s operations are carried out in partnership with other dApps. To date, dappOS has established collaborations with numerous dApps.

In January 2023, dappOS partnered with the perpetual contract platform GMX to launch the front-end platform gmx.dappOS.com. By using dappOS, GMX users can further simplify their trading processes, reducing fees by 20%, and allowing users to pay fees with any token. From January to March this year, the platform had over 6,000 weekly active users at its peak, and it continues to maintain around 1,000 weekly active users in recent times. During this period, it processed close to $150 million in trading volume, with daily volumes exceeding $10 million at its highest.

Source: Dune

dappOS has also engaged in similar collaborations with DEXs and liquidity protocols, such as the well-established DEX KyberSwap and the leading lending and liquidity protocol Benqi on Avalanche. These partnerships have yielded impressive results, with KyberSwap achieving over 3,000 weekly active addresses and Benqi maintaining around 1,000 weekly active addresses.

Source: Dune

In addition, dappOS has also reached cooperation with public chains such as Avalanche zksync and polygon, as well as DeFi protocols such as Quickswap, MakerDAO, and Frax.

Source: dappOS official website

2.3 Funding Status

dappOS has completed a total of three funding rounds.

• In November 2022, dappOS was selected for Binance Labs Season 5 Incubation Program and received Pre-Seed funding from Binance Labs on June 20, 2023, though the specific amount of this funding was not disclosed.
• On July 21, 2023, dappOS completed its Seed round at a valuation of $50 million, led by IDG Capital and Sequoia China. Other participants included OKX Ventures, HashKey Capital, KuCoin Ventures, TronDAO, Gate Labs, Taihill Ventures, Symbolic Capital, Foresight Ventures, BlueRun Ventures, Mirana Ventures, and Leland Ventures.
• On March 28, 2024, dappOS completed its Series A round at a $300 million valuation, raising $15.3 million. This round was led by Polychain, with participation from Nomad Capital, IDG, Flow Traders, IOBC, NGC, Amber Group, Uphonest, Taihill, Waterdrip, Bing Ventures, Metalpha, Spark Digital Capital, Web3Port Foundation, and Satoshi Lab.

Overall, dappOS has an impressive investment background and has recently secured $15.3 million in funding, ensuring strong financial backing.

Conclusion

The intent-based sector aims to enhance the Web3 user experience, potentially triggering Web3’s “1995 moment” by enabling massive adoption. Over the past year, the intent sector has become a popular investment target for VCs, with many projects aligning their concepts with the intent model.

However, the intent sector is still in its early stages. Most projects in this space, including dappOS, have yet to fully launch their products, and business models remain somewhat unclear. As of now, many of dappOS’s products and mechanisms have not yet been rolled out, leaving significant uncertainty around the future of the sector and the project.

For projects like dappOS, which have limited short-term deliverables but hold long-term narrative potential, investment background and business development capabilities may serve as key indicators of success.

dappOS boasts a prestigious investment lineup, including top exchanges, traditional VCs, and crypto-focused VCs, demonstrating strong investor confidence. Its successful collaborations with standout DeFi projects like GMX showcase its solid business development capacity.

As dappOS aims to become a leader in the intent sector, its future trajectory will be one to watch closely.

Disclaimer：

1. This article is reprinted from [mintventures]. All copyrights belong to the original author [Lawrence Lee]. If there are objections to this reprint, please contact the Gate Learn team, and they will handle it promptly.
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