What is Intrinsic?

Introduction

The Intrinsic Protocol is a set of smart contracts that facilitate the exchange of cryptocurrencies in a peer-to-contract manner. Running on the very secure RSK blockchain Intrinsic operates through a collection of permanent, unchangeable smart contracts, with a focus on ensuring resistance to censorship, enhanced security, self-custody over assets, and a decentralized design that eliminates the need for intermediaries so no centralized entities can limit or prevent access.

Intrinsic is an Automated Market Maker

The majority of markets available to the public utilize a centralized system known as a limit order book, in which buyers and sellers generate orders arranged by price levels. These orders are gradually executed as demand fluctuates. Online stock brokerage companies utilize an order book.

Rather than relying on an order book, the Intrinsic protocol adopts a different design by utilizing an Automated Market Marker (AMM).

At a broad level, an AMM reimagines the conventional order book market by replacing buy and sell orders with a liquidity pool consisting of two assets that have relative values with each other. As these assets are exchanged, their relative prices adjust, ultimately establishing a new market rate for both assets. Instead of interacting with specific orders placed by other participants, buyers and sellers engage directly with the liquidity pool represented in the smart-contract, hence the concept peer-to-contract.

Freedom to exchange

The Intrinsic Protocol further diverges from traditional markets through its permissionless and immutable design. These design choices draw inspiration from the fundamental principles of Bitcoin and our unwavering dedication to the values of unrestricted access and immutability. We firmly believe that these principles are essential in creating a future where individuals worldwide can avail themselves of financial services without concerns of discrimination or counter-party risk.

The concept of a permissionless design implies that the services provided by the protocol are fully accessible to the public without any ability to selectively limit usage. It enables anyone to freely engage in trading, liquidity provision, or even the creation of new markets. This departure from traditional financial services, which often impose restrictions such as geographical location, wealth status, and age, promotes inclusivity and eliminates barriers to entry and participation.

The immutability of Intrinsic prevents modifications of its contracts. It is not possible for any entity to halt smart contract and trade execution upholding the user's freedom to exchange.