Blue Fox Notes: Understanding dappOS's Intent-Centric Infrastructure

dappOS is a foundational infrastructure based on a task execution network, enabling the creation of diverse intent-centric products focused on user needs, thereby enhancing user experience in the crypto space.

Written by: Blue Fox Notes

Paradigm has put forward the intent-centric narrative, and its implementation is also being driven by Polychain and various projects, one of which is dAppOS, invested in by Polychain. dAppOS is an intent-centric project. Polychain’s previous investments, such as Celestial, have advanced the modular track; Eigenlayer has pushed the restaking track; and TAO has driven the AI track. Will this investment in dAppOS propel the development of the intent track? Only time will tell.

How should we understand dAppOS’s intent-centric narrative? There are several points worth noting:

1. dAppOS is an intent execution network and foundational infrastructure for enhancing user experience

dAppOS itself is not complicated to understand; it is an intent execution network that creates a two-sided market. This two-sided market exists because there are barriers between the results users want and the complexity of execution. Through this intent execution network, dAppOS helps users achieve their desired outcomes without having to go through complex intermediate steps, thereby improving user experience. At the same time, it allows service providers who help complete tasks to earn corresponding income. This is a win-win market.

Through dAppOS, users can make their assets interoperable across various dApps on different chains, pay gas fees with any asset, and complete all transactions with a single signature, without worrying about intermediate steps. These examples represent a significant improvement in current user experience. As the complexity of DeFi increases, with the rise of multiple L2s and multi-chain environments, and more intermediate steps in the crypto space, the demand for such user experience simplification in a two-sided market is on the rise.

From the above description, it is clear that dAppOS is a foundational infrastructure based on a task execution network, enabling the creation of diverse intent-centric products focused on user needs, thereby enhancing user experience in the crypto space.

2. dAppOS’s intent task frameworks

So far, dAppOS has three types of intent task frameworks: intent assets, intent trading, and intent-centric dApp interactions. In the future, more task frameworks may emerge depending on the scale and urgency of user needs.

* Intent Assets are currently one of the most important intent task frameworks in dappOS. Intent Assets can be seen as yield-generating and tradable assets. Their dual nature is made possible by dappOS’s intent execution network. For example, IntentUSD is an intent USD asset. On one hand, it can earn USD-denominated returns (similar to “Yu’e Bao,” where users automatically earn interest after depositing), while also being flexible and tradable at any time, allowing users to withdraw as USDT or USDC to other addresses, or use it for lending, contract margin, etc.

This helps activate currently idle assets such as USDT and USDC. Currently, about 50% of USDT in the Ethereum ecosystem sits idle in users’ independent wallets, not earning yield in CEXs or contracts, amounting to over 50 billions USD; about 60% of USDC is similarly idle, totaling around 20 billions USD. In other words, about 70 billions USD is sitting idle and not earning the returns it could. If a portion of these funds is converted into IntentUSD, they can earn yield and remain readily available for transfer when needed.

Besides USD, ETH and BTC can also become intent assets, bringing convenience to users. For example, staked ETH can earn decent returns, but if you want to keep it liquid, there is usually significant friction. With Intent ETH, you can earn yield while maintaining liquidity. This is achieved through the intent execution network; users only need to care about the outcome (yield + availability).

* Intent Trading

Users can achieve optimal trading costs when trading spot assets. That is, by leveraging the intent execution network, users can use task service providers to achieve their trades at lower costs.

* Intent-centric dApp interactions

Users can interact seamlessly with dApps, avoiding the complexity of direct blockchain interactions.

As the number of chains and L2s increases, interactions become more complex and the possibilities multiply. By executing through the intent network, users can avoid a lot of complicated interactions. From this perspective, as long as the intent execution network identifies user pain points, there is an opportunity to create intent products with better user experiences.

3. Optimistic Minimum Stake mechanism and the operation of the intent execution network

dAppOS has introduced the “Optimistic Minimum Stake” (OMS). In this user intent execution network, the benefit of OMS is that it allows proactive task service providers to earn more income and helps users get a better experience.

For task service providers, if they fail to help users complete tasks, they are penalized; conversely, if they complete tasks successfully, they are rewarded. This reward and punishment mechanism is beneficial for proactive task service providers, as improved user experience and confidence will attract more users, which in turn brings more income to service providers.

For users, if the task succeeds, they can easily achieve their desired outcome, paying some fees (or even saving on fees) for a better result; if the task fails, they can receive compensation from the service provider’s staked assets. This mechanism gives participating users greater confidence and a better experience.

In summary, the OMS mechanism is both the underlying security mechanism of dAppOS and a driving force for the intent execution market.

4. dAppOS and the singularity moment for web3 user experience

If it were just a simple two-sided market, dAppOS would not be particularly special within web3. However, dAppOS’s two-sided market is focused on improving user experience. It is not just an intent execution two-sided market, but also an important component for enhancing user experience in the crypto space. This gives it the opportunity to become foundational infrastructure serving many other protocols or dApps.

Other projects can improve their user experience by integrating with dAppOS’s intent execution network, such as for asset trading, cross-chain operations, arbitrage, and more. In a sense, as long as a certain scale of users can clearly articulate their desired outcomes within a given task framework, task service providers have the opportunity to meet those needs.

There are several benefits to helping users achieve outcomes through task service providers: 1) Cost savings: potential fee reductions, as service providers may find more optimal paths; 2) Time savings: faster results, as service providers are more professional and efficient; 3) Reduced hassle: safer, avoiding various phishing sites and other issues; 4) Yield (for example, intent assets offer both yield and better liquidity).

Once users gain a better experience through the dAppOS protocol, it will encourage more protocols and projects to adopt dAppOS. To improve dAppOS and user experience, it is necessary to continuously start from the most basic user needs and iterate to develop an intent task execution network that truly meets those needs—there is much room for exploration here.

If dAppOS can elevate web3 user experience to the level of web2, there is a chance to achieve a leap in web3 user experience. Of course, this is not easy and requires ongoing exploration and iteration.

5. Value capture of the dAppOS network

As more dApps are integrated and more users participate, task service providers have the opportunity to earn greater income, which will incentivize more providers to join and stake more native network assets (dAppOS native tokens), benefiting the value capture of the dAppOS protocol itself. In addition, as a foundational infrastructure for a two-sided market, when the market reaches a certain scale, it can capture a certain proportion of revenue from the middle, which is also where dAppOS can capture value as foundational infrastructure.

In other words, the growth of dAppOS’s market size is crucial for the sustainable development of its tokenomics. How far dAppOS can go depends on, first, user habits—whether users can gain a sufficiently good user experience (greater returns, simpler operations, lower fees, faster speed, desired outcomes, etc.); and second, whether task service providers can continue to earn returns. Once the market achieves a cold start and enters a positive cycle, as the dAppOS intent execution market grows, its token will also have the opportunity to capture the value of network growth.