MetaMask is testing a “transaction routing” feature that could turn the largest Ethereum wallet into an “intent-centric” protocol, meaning users will be able to rely on third parties to find the best path for their transactions.
The goal of the technology will be to provide optimal execution and a better user experience.
The routing technology is developed by Special Mechanism Group, which MetaMask owner Consensys bought last year. It will eventually be available to third parties.
MetaMask joins a growing field of intent-focused protocols like Uniswap X, CoW Swap, Anoma, and SUAVE, but Consensys says its approach has some differences that make it less risky.
MetaMask, the most popular crypto wallet on Ethereum, is testing a new “transaction routing” technology that will likely have major consequences for how value flows through the second-largest blockchain network.
CoinDesk learned of the new technology from developers briefed on the plan, and key details were later confirmed by officials at MetaMask’s parent company, Consensys.
The effort is based on a concept known in blockchain circles as “intent” which is rapidly gaining momentum, potentially leading to a radical change in the way people interact with blockchains: instead of specifying how they want to do something (e.g. “sell X token on Y exchange for Z price”), blockchain users may just need to specify what they want the outcome to be (e.g. “I want the best price for my tokens”).
The distinction between “what” and “how” might seem subtle, but it’s a big departure from how MetaMask and other crypto wallets originally functioned: as neutral, relatively simple pieces of software to connect users to blockchains. The goal of the new technology is for users to get better execution of their transactions and greater ease of use, but intent-based programs ultimately represent a big shift in where – and to whom – value flows on blockchains.
To know more: “Intents” are the big new buzzword in Blockchain. What are they and what are the risks?
The new technology was developed by Special Mechanism Group (SMG), a blockchain infrastructure company purchased by MetaMask owner Consensys last year.
According to Consensys, which confirmed project details but was only willing to discuss them at a high level, an early version of SMG’s new routing technology is already being used to power “Smart Swaps,” a feature in the MetaMask browser extension that helps users swap between tokens.
In the past, a MetaMask user who wanted to sell tokens would have to submit a transaction specifying exactly how, where, and at what price they wanted their tokens sold. With Smart Swap, which is an intent-based “opt-in” feature, a user can simply request that MetaMask sell their tokens at the best price they can find.
Once MetaMask completes the transition of Smart Swaps to its new architecture, it will be powered by an underground ecosystem of third-party blockchain operators. These third parties will find the optimal route to a given exchange and then execute the required transactions on your behalf.
Compared to a simple trade aggregator that finds the best price for an asset by comparing different exchanges, Smart Swaps, with its new routing technology, will have total freedom over the path needed to satisfy a user’s request.
Consensys says it plans to expand its routing functionality beyond Smart Swaps to other types of transactions in the coming months and will also make it available to third parties who want to use it themselves. On MetaMask, the technology will always be “optional,” meaning users won’t have to use it if they don’t want to.
However, there are some risks. MetaMask, as the largest player in the wallet world, could set a precedent for other wallet builders. Given that its new functionality represents a radical rethink of how crypto wallets work, it’s likely that the new technology will gain some attention as its design becomes clearer.
Intent-focused protocols
With so many apps on Ethereum today, there are endless paths one could take to accomplish a given task, and some will be much more profitable (or cost less) than others.
With its new transaction routing technology, MetaMask joins a growing field of “intent-centric” protocols like Anoma, Uniswap X, SUAVE, and CoW Swap that aim to make Ethereum less daunting to navigate. Users enter goal-oriented “intents” (e.g. “Get the best price for my tokens”) rather than detailed transaction instructions into protocols.
Third parties behind the scenes typically compete with each other to satisfy user requests at the best price and, in exchange, obtain transaction fees or other economic incentives.
In addition to improving the user experience of Ethereum, these programs are usually designed to help users avoid the scourge of Maximum Minable Value (MEV), where bots preview the Ethereum transaction queue to find profitable trading opportunities , so you can skim marginal profits from end users – sometimes compared to the unsightly practice of front-running.
However, there may be risks to new intent-focused programs, including regulatory considerations and concerns that some routing systems may do so entrench new power players at key points in a chain’s transaction pipeline. The risks become even greater with the involvement of a player like MetaMask, the first touchpoint for a large portion of transactions affecting Ethereum.
What we know so far
Consensys says it deliberately designed its new routing mechanism to avoid some key risks and shift power from validators proposing blocks (to earn fees and MEV) to users submitting transactions.
In response to questions from CoinDesk, Consensys provided comments via email from SMG director Jason Linehan indicating that SMG’s technology is different from other intent-focused projects, as it is “not a centralized solution and is not a vertical integration”.
Typically, when a user sends a request to an intent-focused program, they end up in some sort of private mempool, a waiting area for transactions yet to be processed that is isolated from Ethereum’s default “public” mempool (a large portion of how protocols protect users from MEV bots). From there, the intent is collected by a third-party blockchain operator, sometimes called a “filler,” who bids against other operators to match the user’s intent at the best possible price.
Linehan wouldn’t reveal details of the SMG mechanism, but confirmed that it would involve some sort of “auction-based optimization method.” He rejected the idea that SMG would use a private mempool, however.
“We have taken such a unique approach with this technology that it no longer makes sense to call it a private mempool,” Linehan wrote. “People tend to think it’s a public mempool if every node sees every message, and a private mempool if only some nodes see every message, but why would every node see every message in the first place?”
The “MetaMask mechanism is a new design created by SMG and represents a significant departure from existing solutions,” Linehan told CoinDesk.
Linehan said MetaMask’s transaction router would be completely permissionless, meaning anyone could theoretically participate in order flow auctions. “There is a role for every researcher, builder and solver to play, no matter how large or small,” Linehan said.
Linehan also said that SMG’s intent technology will be open to other protocols. “At this stage it’s too early to talk about licensing, but we like open source, so it will play a role,” she said.
“We are currently focused on ensuring we have built the best system of its kind in terms of security, functionality, performance and control,” he wrote. “Once we are satisfied, everyone in the industry will have the ability to use it for themselves and will be free to use it however they want.”
