{"id":"sBP1HFbldnM","title":"Markus Paulson-Luna, Script3 - Abstraction in Action","description":"Chain Abstraction Day at EthCC 2024 in Brussels on July 10th, bringing together NEAR and Agoric for our third installment in the year-long series.\n\nMarkus Paulson-Luna, Script3\n\nJoin NEAR's community:\nWebsite: https://near.org/\nNEAR AI: https://near.ai/\nTwitter:   / nearprotocol  \nBlog: https://near.org/blog/\nMedium:   / nearprotocol  \nGitHub: https://github.com/near \nDev Docs: https://docs.near.org/\n#NEAR #nearprotocol #NEARAI","channel_name":"NEAR Protocol","published_at":"2024-07-23T00:00:00.000Z","thumbnail_url":"https://img.youtube.com/vi/sBP1HFbldnM/hqdefault.jpg","transcript_text":"hey guys I'm Marcus I unfortunately don't have a fun demo I've got a slide deck uh probably because in know past life I was a consultant so you know hard to break the Habit um but anyway I'm going to be talking about CT plus2 which is a protocol we've been researching that uh effectively slows down transaction settlement for Fun and Profit um so what it is is it's an intent pre-settlement uh protocol built on Suave uh what that means is a user can send a intent so intents for those that are unaware are basically unopinionated transactions so something like I want to sell eth at at least $33,000 kind of like a limit order but there's a little bit more Nuance there but anyway they can send an intent to a uh exchange that's run on a blockchain called Suave Suave is a blockchain that flash Bots is releasing uh then the important part there is that every node runs a trusted execution environment which allows us to keep the exchange private and other important things that I'll talk about more later but anyway user sends the intent to a swap exchange it gets picked up by a taker at this point the user is instantly confirmed so uh they had like 3,000 usdc pops up in their account balance they can keep trading with that even though no funds have actually moved on the main chain yet uh the taker then holds this position in inventory and they can now decide where and when they actually want to go settle that trade uh so they can go and um decide okay I want to settle it on cow swap in 10 blocks or like I want to go settle it on uh arbitrum stuff like that so let's talk a little bit about why that's important um basically in intent settlement there's four main decisions that happen there is a what when where and how the what is defining like what you actually want to do the when and where is what venue you're settling on and at what time you're settling and the how is how you're sourcing the liquidity to execute that intent um so what we're doing here is we're abstracting the user further away from those decisions users typically only care about the what and they're only really equipped to handle that what uh they just know that they want to sell e they don't care where it happens they just want a certain price right um but currently in uh incumbent intent flow the user is in charge of deciding the what when and where where a solver decides and then a solver decides the how which is and their job is to actually go in source of liquidity so they might be Market maker just like a specialized actor that is running a router basically so what we do is we allow a taker to decide the when and the where uh which better monetizes the user's order flow and allows us to pass more value back to them um so let's talk a little bit more about specifics of value Generation Um so I ran some preliminary estimates a while back and a Trader using this uh for the ethusd pair onchain would be saving around 87.8 % in trading fees per trade uh the more you trades you do in the platform the more you save uh as you're doing actual settlement less often and you save around 54% uh on gas fees per trade um so that's already huge that's value that we can directly give back to the user but then in addition to that uh takers can also monetize via funding rate Arbitrage since in inventory unsettled intents are similar to Futures positions so they can go settle or they can go hedge that on binance and collect uh funding uh while maintaining Delta neutrality uh and then the there's the lower trading fees that we talked about and then there's also some interesting stuff that you can do uh since in inventory intents are effectively on demand private order flow so block Builders can utilize this to get an advantage in Block building auctions which is very important for like sex deck Arbitrage capture um then the other side of this that we haven't really discussed yet is the ux improvements that you get so one users get extremely fast confirmations the uh exchange that we're running on Suave is run inside a trusted execution environment so that means it runs on one server um because it doesn't actually participate in consensus because everything is private so you don't need to participate in consensus uh this means that your uh yeah your intent is settled as fast as like binance would settle it uh then you also have chain chain abstraction uh we can structure transactions for any chain uh from our crusted execution environment so you can settle on arbitrum optimism the user doesn't know they don't care uh they're just interacting with our app that's running in sve um then you also have defi abstraction because we can hand handle any intent that has a settlement auction on chain so the millions and millions of dollars that are being thrown uh into um intent research and funding that uh we can leverage all of that to expand our apps functionality and I'm almost out of time so I will Rush past this last slide as it's a little bit lengthy but basically this was all possible because of trusted execution environments they allow you to do a lot of very interesting things and run pretty much arbitrary code that can be executed on a blockchain in a trustless way so great stuff um and yeah uh this is my contact info I can I'm always happy to talk about this uh thanks for the time","transcript_synced_at":"2026-11-03T05:42:48.743Z","segments":[{"start_seconds":8,"text":"hey guys I'm Marcus I unfortunately don't have a fun demo I've got a slide deck uh probably because in know past life I was a consultant so you know hard","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=8s"},{"start_seconds":16,"text":"to break the Habit um but anyway I'm going to be talking about CT plus2 which is a protocol we've been researching","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=16s"},{"start_seconds":23,"text":"that uh effectively slows down transaction settlement for Fun and Profit um so what it is is it's an","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=23s"},{"start_seconds":31,"text":"intent pre-settlement uh protocol built on Suave uh what that means is a user can send a intent so intents for those","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=31s"},{"start_seconds":39,"text":"that are unaware are basically unopinionated transactions so something like I want to sell eth at at least $33,000 kind of like a limit order but","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=39s"},{"start_seconds":47,"text":"there's a little bit more Nuance there but anyway they can send an intent to a uh exchange that's run on a blockchain called Suave Suave is a blockchain that","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=47s"},{"start_seconds":56,"text":"flash Bots is releasing uh then the important part there is that every node runs a trusted execution environment which allows us to keep the exchange","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=56s"},{"start_seconds":64,"text":"private and other important things that I'll talk about more later but anyway user sends the intent to a swap exchange it gets picked up by a taker at this","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=64s"},{"start_seconds":72,"text":"point the user is instantly confirmed so uh they had like 3,000 usdc pops up in their account balance they can keep","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=72s"},{"start_seconds":79,"text":"trading with that even though no funds have actually moved on the main chain yet uh the taker then holds this position in inventory and they can now","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=79s"},{"start_seconds":86,"text":"decide where and when they actually want to go settle that trade uh so they can go and um decide okay I want to settle it on cow swap in 10","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=86s"},{"start_seconds":94,"text":"blocks or like I want to go settle it on uh arbitrum stuff like that so let's talk a little bit about why that's","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=94s"},{"start_seconds":101,"text":"important um basically in intent settlement there's four main decisions that happen there is a what when where","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=101s"},{"start_seconds":109,"text":"and how the what is defining like what you actually want to do the when and where is what venue you're settling on","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=109s"},{"start_seconds":116,"text":"and at what time you're settling and the how is how you're sourcing the liquidity to execute that intent um so what we're","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=116s"},{"start_seconds":124,"text":"doing here is we're abstracting the user further away from those decisions users typically only care about the what and they're only really equipped to handle","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=124s"},{"start_seconds":132,"text":"that what uh they just know that they want to sell e they don't care where it happens they just want a certain price right um but currently in uh incumbent","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=132s"},{"start_seconds":140,"text":"intent flow the user is in charge of deciding the what when and where where a solver decides and then a solver decides the how which is and their job is to","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=140s"},{"start_seconds":148,"text":"actually go in source of liquidity so they might be Market maker just like a specialized actor that is running a router basically so what we do is we","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=148s"},{"start_seconds":156,"text":"allow a taker to decide the when and the where uh which better monetizes the user's order flow and allows us to pass more value back to them um so let's talk","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=156s"},{"start_seconds":165,"text":"a little bit more about specifics of value Generation Um so I ran some preliminary estimates a while back and a","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=165s"},{"start_seconds":174,"text":"Trader using this uh for the ethusd pair onchain would be saving around 87.8 % in trading fees per trade uh the more you","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=174s"},{"start_seconds":182,"text":"trades you do in the platform the more you save uh as you're doing actual settlement less often and you save around 54% uh on gas fees per trade um","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=182s"},{"start_seconds":191,"text":"so that's already huge that's value that we can directly give back to the user but then in addition to that uh takers can also monetize via funding rate","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=191s"},{"start_seconds":199,"text":"Arbitrage since in inventory unsettled intents are similar to Futures positions so they can go settle or they can go hedge that on binance and collect uh","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=199s"},{"start_seconds":207,"text":"funding uh while maintaining Delta neutrality uh and then the there's the lower trading fees that we talked about and then there's also some interesting stuff","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=207s"},{"start_seconds":214,"text":"that you can do uh since in inventory intents are effectively on demand private order flow so block Builders can utilize this to get an advantage in","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=214s"},{"start_seconds":222,"text":"Block building auctions which is very important for like sex deck Arbitrage capture um then the other side of this that we haven't really discussed yet is","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=222s"},{"start_seconds":230,"text":"the ux improvements that you get so one users get extremely fast confirmations the uh exchange that we're running on Suave is run inside a trusted execution","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=230s"},{"start_seconds":238,"text":"environment so that means it runs on one server um because it doesn't actually participate in consensus because everything is private so you don't need to participate in consensus uh this","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=238s"},{"start_seconds":247,"text":"means that your uh yeah your intent is settled as fast as like binance would settle it uh then you also have chain chain abstraction uh we can structure","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=247s"},{"start_seconds":256,"text":"transactions for any chain uh from our crusted execution environment so you can settle on arbitrum optimism the user doesn't know they don't care uh they're","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=256s"},{"start_seconds":264,"text":"just interacting with our app that's running in sve um then you also have defi abstraction because we can hand handle any intent that has a settlement auction on chain so the millions and","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=264s"},{"start_seconds":273,"text":"millions of dollars that are being thrown uh into um intent research and funding that uh we can leverage all of","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=273s"},{"start_seconds":281,"text":"that to expand our apps functionality and I'm almost out of time so I will Rush past this last slide as it's a little bit lengthy but basically this","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=281s"},{"start_seconds":289,"text":"was all possible because of trusted execution environments they allow you to do a lot of very interesting things and run pretty much arbitrary code that can","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=289s"},{"start_seconds":297,"text":"be executed on a blockchain in a trustless way so great stuff um and yeah uh this is my contact info I can I'm","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=297s"},{"start_seconds":305,"text":"always happy to talk about this uh thanks for the time","url":"https://www.youtube.com/watch?v=sBP1HFbldnM&t=305s"}],"youtube_url":"https://youtube.com/watch?v=sBP1HFbldnM","url":"https://near-pedia.xyz/videos/sBP1HFbldnM"}