TradeVoodoo HIVE: hybrid intent and vault engine for perps on Base
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Reviews intent-based perp DEXs (Symmio RFQ) and their trade-offs on decentralization and LP participation versus GMX-style pools, then explains how TradeVoodoo's HIVE combines both, with an MPC intent layer run as an EigenLayer AVS and a restaked token, vrETH.
Key claims
Intent RFQ designs lose permissionless LPing and on-chain transparency
HIVE merges RFQ speed with GMX-style LP vaults
TradeVoodoo is a top 5 DEX by volume and fees on Base
The bull is coming and @eigencloud is the narrative
📈 Bull market = trillions in trading volume
🚀 EigenLayer season = billions in capital seek exposure
I found an intent-based Perp DEX built on @base x @eigencloud that captures the former & provides the latter
Alpha-🧵
1/ Trading infrastructure is one of the easiest bull market bets.
With increasing attention to crypto markets, demand for scalable trade execution skyrockets.
The hard part is identifying the protocols that bring innovative solutions to market that capture large-scale volume.
2/ With @eigencloud season shaping up, capital will increasingly seek exposure in the ecosystem of apps built on EigenLayer tech.
That's why I set out to discover EigenLayer-based protocols for various trading use cases early.
Let me introduce you to a true gem on @base.
3/ The protocol we explore today is among the fastest, most capital efficient Perp DEXs on @base.
Already live on Guarded Mainnet, it's a top 5 DEX by volume & fees on Base.
LBP on @FjordFoundry has started today (more on that later).
4/ But let's take a step back and look at the intent-based trading space more broadly to understand where this protocol fits in.
Some DEXs that utilize intents exist on the market today.
UniswapX, Cowswap, 1inch Fusion and Symmio for example are RFQ (request for quote) systems.
5/ Instead of directly calling a smart contract to trade, users define an end goal like “swap 1 ETH for 2500 USDC”.
This is executed by “solvers” who are incentivized with a fee to achieve this end state.
Solvers can be bots, professional market makers or protocol run servers.
6/ While UniswapX, Cowswap & 1inch Fusion are spot platforms, Symmio has pioneered an RFQ system for perpetual derivatives.
IntentX, Thena, etc. are 3rd party projects that provide a UI on top of Symmio, similar to Kwenta, which is the UI to Synthetix's smart contract system.
7/ RFQ systems maintain an off-chain, centralized orderbook akin to Ethereum’s mempool where orders are queued for execution.
Traders submit orders, which are then executed by professional market makers (solvers) if they find it profitable.
8/ This design has some distinct advantages for Perp DEXs:
⚡️ Gasless execution
Traders simply sign a message and the trade is performed. There is no network fee in ETH, just a % on the tokens charged by the solver.
9/
🚀 Trading Speed & UX
Intent-based exchanges can give CEX-grade speeds to users since the orderbook is off-chain.
Paired with account abstraction (ERC 4337), intents can provide a CEX-grade UX with social login functionality, removing the need of managing keys.
10/ However, these systems make significant trade-offs on decentralization and the interests of retail traders.
Traders on GMX benefit from a peer-to-peer liquidity pool model, where the pool acts as a counterparty to user positions.
11/ Intent-based protocols remove LPing from the equation entirely, resulting in the loss of permissionless participation and on-chain transparency.
The only way to participate for retail users is to compete with professional market makers, with the odds stacked against them.
12/ Intent-based mempools are opaque.
Their adoption requires leaps in the assumption of trust traders hold towards their counterparties (solvers).
With today's intent-based trading protocols, traders are subjected to the same opacity of CEX order books, masked as DeFi.
13/ On the other side of the spectrum, LPs on GMX-style perp DEXs earn via a number of avenues, not limited to perp trading.
A significant portion of earnings comes from spot trading and liquidations. Earnings that are not part of the equation with intent-based projects.
14/ Intents in the current form might also impair composability. The USP of GMX was access to real yield, made possible only by passive LPing in GLP vaults.
Thanks to vaults, GMX was able to offer escrowed GMX tokenomics to attract and reward long-term LPs.
15/ Okay cool, but where does this @eigencloud-based Perp DEX fit in you mentioned initially?
Let's do this anon.
@TradeVoodoo introduces HIVE, a.k.a. Hybrid Intent and Vault Engine, a next generation permissionless perpetual trading engine.
16/ The HIVE next-gen perp AMM combines the speed & UX of intents with the benefits of decentralised & composable LP Vaults.
This innovative implementation of intents is part of @TradeVoodoo v2 and opens the door to any LP, who simply can provide liquidity into the VLP pool.
17/ HIVE subsequently provisions the liquidity where the demand is.
Part of the funds make markets on a protocol managed, builder-maintained orderbook, which offers CEX level speeds.
18/ Traders who want to speed trade on the RFQ market can choose to do so with @TradeVoodoo.
The ones who want to opt for full on-chain security simply trade on the GMX-style AMM.
19/ This design has a number of distinct advantages, including:
🛡 Customizable Security: Flexibility for users.
💰 Capital Efficiency: Common pool increases capital efficiency as liquidity isn't fragmented.
⛽️ Gasless transactions: HIVE uses ERC-2612 based gasless approvals.
20/ So where does @eigencloud enter the picture?
HIVE has its own intent propagation infra based on multi-party computation (MPC) for security & decentralization.
Running as an Actively Validated Service (AVS) on EigenLayer, it is secured with restaked ETH and LSDs.
21/ This is basically what the keeper server is in v1.
The heartbeat of Voodoo, responsible for opening positions, liquidations and updating the oracle price.
The keeper maintains an orderbook for limit orders. These are executed when their limit price is met.
22/ The integration of @eigencloud on Voodoo v2 lets any user holding ETH or LSDs stake their assets to help secure & decentralise the network.
Users can for example participate in securing the @TradeVoodoo keeper Actively Validated Service (AVS) on Eigenlayer.
23/ @TradeVoodoo will also introduce its own Liquid Restaking Derivative Token (LRD) called Voodoo Restaked ETH (vrETH).
It will earn real yield from the protocol (see breakdown below) and Eigenlayer points from restaking.
The token is fully liquid and tradable.
24/ Today the @TradeVoodoo LBP on @FjordFoundry starts.
Could be a chance to enter at a low valuation.
NFA though, don't have any exposure yet myself either and have to see if I ape. Looks like a very solid play though imo.
DYOR and don't fade anon!
x.com/TradeVoodoo/status/1754475063447871759
That's a wrap! I hope you've found this thread helpful! 🫡
Make sure to follow me @zerokn0wledge_ to stay ahead of the curve on cutting-edge intent-based trading protocols and all things @eigencloud. 👀
Like/Repost of the below post is also highly appreciated! 🙏👇
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