ParaSwap Launches Intent-Based Protocol to Combat MEV Attacks

ParaSwap, a decentralized exchange aggregator, has introduced an intent-based trading protocol to address the growing issue of MEV (maximal extractable value) attacks, which have been draining millions from crypto transactions. According to data from EigenPhi, attackers have earned nearly $17 billion over the past month through popular strategies like sandwich transactions, which manipulate the order of transactions to profit at users’ expense.

MEV attacks exploit the ability of validators to control the ordering and execution of on-chain transactions. Mounir Benchemled, ParaSwap’s founder, explained that these attacks have significantly degraded user experience and reduced the efficiency of decentralized finance (DeFi) protocols. “MEV impacts not only individual transactions but also the overall fairness and decentralization of the DeFi ecosystem,” Benchemled said.

ParaSwap’s new Delta protocol aims to offer a solution by allowing users to define their trading intent rather than exposing raw transactions to mempools. This approach is designed to prevent MEV bots from exploiting transactions. When users execute trades, the protocol preprocesses their intent—such as preferred price ranges—and then submits it to an auction where AI agents compete to find the most efficient execution strategy. The chosen agent then completes the trade through ParaSwap’s Portikus Swap module, ensuring the user’s intent is respected while minimizing MEV risks.

The rise of MEV attacks, particularly during the DeFi boom of 2021, has prompted other liquidity aggregators like 0x to develop their own strategies, such as bundling transactions or prioritizing them based on criteria like time or fairness rather than profitability.

Since its launch in 2019, ParaSwap has facilitated over $76 billion in transactions. The company plans to expand its protocol’s support to more blockchain networks and integrate more AI-driven solutions to enhance MEV protection further.