Intent-Based Lending

An intent is a signed message expressing willingness to borrow or lend under specific conditions. Unlike pool deposits that commit capital immediately, intents commit only to terms. Your assets stay in your wallet until a counterparty agrees.

Anatomy of an intent

Borrow intent

A borrow intent specifies what you want to borrow and what you offer as collateral:

interface BorrowIntent {
  // What you offer as collateral
  collaterals: Array<{
    chainId: number           // Chain where collateral resides (1=Ethereum, 42161=Arbitrum, etc.)
    contractAddress: string   // Token contract address
    amount: string            // Amount in wei (18 decimals)
  }>

  // What tokens you accept as loan principal
  acceptedPrincipals: Array<{
    chainId: number
    contractAddress: string
  }>

  // Loan terms
  minLoanAmountUsd: string    // Minimum loan size (prevents dust matches)
  minLtvBps: number           // Minimum LTV in basis points (7500 = 75%)
  maxAprBps: number           // Maximum APR in basis points (700 = 7%)
  loanLifetime: number        // Duration in seconds

  // Where to receive funds
  payoutAddress: string

  // Cryptographic commitment
  signatureProof: {
    message: string           // EIP-712 typed data message
    signature: string         // ECDSA signature
  }
}

Lend intent

A lend intent specifies what you offer to lend and what collateral you accept:

interface LendIntent {
  // What you offer to lend
  principals: Array<{
    chainId: number
    contractAddress: string
    amount: string            // Amount you're willing to lend
  }>

  // What collateral you accept
  acceptedCollaterals: Array<{
    chainId: number
    contractAddress: string
  }>

  // Loan terms
  minLoanAmountUsd: string    // Minimum loan size
  maxLtvBps: number           // Maximum LTV you'll extend (8000 = 80%)
  minAprBps: number           // Minimum APR you require (500 = 5%)
  loanLifetime: number        // Duration in seconds

  // Cryptographic commitment
  signatureProof: {
    message: string
    signature: string
  }
}

Both intents include a cryptographic signature binding you to these terms. The signature uses EIP-712 typed data for security and wallet compatibility.

How matching works

The matching engine continuously scans for compatible intent pairs. The matching algorithm validates five conditions:

How matching works

Collateral asset - The borrower offers collateral that appears on the lender's accepted list.

Principal asset - The lender offers principal that appears on the borrower's accepted list.

LTV overlaps - The borrower's minimum is at or below the lender's maximum. If a borrower wants at least 75% LTV and a lender allows up to 80%, any value between 75-80% works.

APR overlaps - The borrower's maximum meets or exceeds the lender's minimum. If a borrower accepts up to 8% and a lender requires at least 6%, any rate between 6-8% works.

Loan amount - The effective principal meets both parties' minimum loan size requirements.

When all conditions are satisfied, the engine computes effective terms and creates a match:

interface MatchResult {
  lendOrderId: number
  borrowOrderId: number

  // Assets being exchanged
  principalAsset: {
    chainId: number
    contractAddress: string
  }
  collateralAsset: {
    chainId: number
    contractAddress: string
  }

  // Computed amounts
  effectivePrincipalAmount: bigint   // Wei (18 decimals)
  effectiveCollateralAmount: bigint  // Wei (18 decimals)

  // Negotiated terms
  effectiveLtvBps: number            // Final LTV in basis points
  effectiveAprBps: number            // Final APR in basis points

  // Which side is fully consumed
  exhausted: "LENDER" | "BORROWER"
}

Term computation

For overlapping ranges, the protocol selects the lender's terms:

LTV: Uses the lender's maximum LTV. This protects the lender - they set the upper bound of risk they accept. Borrowers who wanted higher LTV still benefit because the lender's max is within their acceptable range.

APR: Uses the lender's minimum APR. Lenders get their required rate. Borrowers benefit because it's the lowest rate within the overlap.

Both parties know exact terms before committing.

Multi-order generation

A single intent can generate multiple orders. If a borrower offers three collateral types and accepts two principal types, the protocol generates six orders - one for each combination.

This enables efficient matching. A large lender intent might fill multiple borrower orders. A borrower might receive principal from multiple lenders. The matching engine optimizes for maximum capital deployment while respecting each party's constraints.

Order states

Each order tracks its own fill state:

Status	Meaning
OPEN	Available for matching
PARTIALLY_FILLED	Some matched, remainder available
FILLED	Completely matched
CANCELLED	User cancelled before matching

Partial fills allow large intents to match incrementally. A lender offering $100,000 might fill five $20,000 borrower orders, each creating a separate loan with independent terms.

Loan lifecycle

Once matched, a loan progresses through defined stages:

Loan statuses

Status	Description
PENDING_TRANSFER	Match found, waiting for on-chain execution from both parties
ACTIVE	Funds settled, loan running, interest accruing
REPAID	Borrower repaid in full, loan closed successfully
LIQUIDATED	Collateral value dropped, position was liquidated
DEFAULTED	Loan expired without repayment
FAILED	On-chain execution failed or timed out

Cancellation

You can cancel unmatched orders at any time. Once an order matches, that specific match cannot be cancelled - the loan process has begun.

For intents that generated multiple orders, you can cancel only the unfilled ones. Matched orders proceed to execution regardless.