Exploring use cases for Intent-based Flows for Osmosis

Ecosystem
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Exploring use cases for Intent-based Flows for Osmosis

Overview

Osmosis is a leading interchain DEX, offering deep liquidity and customizable LP strategies. However, LPs and traders can face operational inefficiencies when managing rewards, reallocating liquidity, and optimizing portfolios across chains.

Intento will be a new chain launching on the Cosmos Hub via ICS that enables intent-based flows. It’s leveraging Interchain Accounts (ICAs), Interchain Queries (ICQs), and conditional logic** to orchestrate portfolio management, reward compounding, and dynamic asset allocation. By using Intento, users can orchestrate DeFi workflows that execute optimally without requiring manual intervention.

Intento is all about self-custodial, secure on-chain orchestration—enabling configuration-only, user-owned flows that are free from smart contracts and intermediaries. This means your actions remain secure, and fully under your control, all while maintaining scalability.

We’re exploring which use cases are most valuable to the Osmosis community and would love your feedback!

Potential Use Cases for Intent-Based Flows

1. Orchestrate LP Reward Diversification

Challenge: LP rewards increase your position in the pool, but what if you want to convert a portion into another asset—like stablecoins or staking tokens—without manual intervention?

Potential Solution with Intento

  1. Track total shares growth (ICQ): Since LP shares remain constant, but total pool shares grow, the Intento Flow can track reward accumulation.
  2. Set threshold-based triggers (Condition): If reward accumulation surpasses a set percentage, trigger a conversion to an alternative asset.
  3. Execute via ICA: Rewards are automatically swapped into another asset (e.g., stablecoins for lower risk, or staking tokens for additional yield).

:small_blue_diamond: Would you use a strategy that converts LP rewards into another asset automatically? Let us know!

2. Dynamic Portfolio Management with ICAs & Conditional Execution

Challenge: Users managing multiple pools need a way to dynamically rebalance assets based on market conditions and yield opportunities.

Potential Solution with Intento

  1. Monitor pool APYs & volatility (ICQs): Query real-time rewards and market conditions across Osmosis pools. Track the change in total shares to indicate the reward rate.
  2. Compare risk-adjusted returns (Condition): If a pool’s yield drops below a threshold or volatility exceeds a set limit, Intento triggers rebalancing.
  3. Execute via User-controlled ICA: Funds are automatically shifted to higher-yielding, lower-risk pools.

:small_blue_diamond: Would this improve your LP strategy? Share your thoughts!

3. Feedback Loops for Automated Yield Optimization

Challenge: Users want a self-optimizing strategy that dynamically shifts liquidity and compounding strategies based on performance trends.

Potential Solution with Intento

  1. Track historical yield trends (ICQ): Intento Flow queries past performance, user’s LP shares and liquidity depth.
  2. Set threshold-based triggers (Condition): If a pool shows decreasing rewards over time, the flow reallocates LP positions.
  3. Execute shifts via ICA: Funds are smoothly moved into pools with stronger performance.

:small_blue_diamond: Would you use a self-adjusting yield optimizer? Let us know!

4. Rebalancing LP Positions Based on Market Changes

Challenge: Market price fluctuations impact LP profitability, requiring frequent manual rebalancing to mitigate impermanent loss.

Potential Solution with Intento

  1. Monitor asset prices in pools (ICQ): Detect price movements and liquidity shifts.
  2. Set rebalance conditions (Condition): If a price deviation surpasses a predefined threshold, trigger an LP position adjustment.
  3. Execute rebalance via ICA: Funds are moved within or across pools to maintain optimal LP positioning.

:small_blue_diamond: Would automatic LP rebalancing improve your strategy? Tell us what you think!

5. Arbitrage Strategies Using External Price Feeds

Challenge: Price discrepancies between Osmosis and other chains (e.g. DyDx, Elys) create arbitrage opportunities that are near-impossible for DAOs and multisigs to capture.

Potential Solution with Intento

  1. Fetch external price data (ICQ): To compare asset prices on Osmosis with external DEXes.
  2. Identify arbitrage windows (Condition): If a price difference exceeds a threshold, trigger an arbitrage trade.
  3. Execute via ICA: Swap assets on Osmosis and other chains to capture the price spread.

:small_blue_diamond: Would arbitrage strategies be useful for you? Share your feedback!

Community Feedback

We want to hear from you! Which of these features excites you the most? Are there other intent-based flows you’d like to see on Osmosis? Drop your thoughts below!

— The Intento Team

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