Intent-based routing on Arbitrum: how AutoLayer works

What “intent-based” means

A normal swap asks the user to choose every step: which venue, which pool, which token path. An intent flips that. The user states the outcome, for example “turn this ETH into that token”, and software works out how to achieve it.

AutoLayer’s engine is intent-based and connects to the majority of liquidity available on Arbitrum, so users can access the best prices and optimize gas costs. Two points shape the rest of this guide:

1. AutoLayer is not directly engaged in swaps, mints or perps. We do not run our own exchange.
2. The engine connects to partners to secure the best market prices, selecting the optimal route for each trade.

So AutoLayer is a router. The liquidity belongs to other protocols.

The V1 partner list

Since launching on Arbitrum in August 2023, our V1 integrations in the LRT ecosystem include:

Protocol	Role
EigenLayer	LRT ecosystem collaboration
Kelp DAO	LRT issuer
Renzo Protocol	LRT issuer
Uniswap	DEX liquidity
Balancer	DEX liquidity
ParaSwap	Routing partner
Camelot	Reached through ParaSwap
GMX	Perps integration

We also work with SushiSwap and Yearn Finance. Presence on the list does not imply an endorsement from those protocols. For the full picture, including our later expansion to BNB Chain with Renzo and ether.fi, see the ecosystem page.

For V2, integrations extend to other protocols deploying LRTs on Arbitrum.

Transaction consolidation

The second idea is about strategies. AutoLayer consolidates transactions, combining multiple transactions for greater efficiency.

Take a simple LRT strategy done by hand. You would approve a token, swap into the right asset, deposit into an issuer, and approve again before using the result somewhere else. Each step is a signature, a fee and a wait, and any one of them can fail halfway. Consolidation bundles the steps into a single transaction.

The benefits are practical:

• Fewer wallet prompts.
• One gas payment instead of several.
• No half-finished states, because a single transaction either completes or reverts.

The trade-off is that you sign a more complex action. That is why a visible summary of what will happen matters, and why the contract being used should be audited. See the security page.

The user’s view

The screenshot below shows the app’s staking flow: a WETH deposit, then three status lines (route found, token approved, operation done), a link to the transaction on Arbiscan, and the points the transaction earned.

The sequence in the image is an intent engine plus consolidation: it finds a route for the swap, approves the token and completes the operation, all within one flow.

How points work

V1 incentives work through points:

1. AutoLayer uses a proxy contract. Each time funds pass through it, we tally the points added to the user’s wallet.
2. Users earn 1 point for every dollar in value traded.
3. Points are securely recorded on a smart contract, which serves as the oracle for distribution.
4. A referral programme pays in points.

A point is a record, not a token. Our native token, LAY3R, was listed on KuCoin on 3 October 2024 (BEP-20); see the LAY3R token page for details. Points themselves carry no guaranteed value or conversion rate.

The arithmetic

Because the rule is one point per dollar traded, the calculation is direct:

Value traded	Points (at 1 point per $1)
$10	10
$250	250
$5,000	5,000

The screenshot above shows a very small trade earning a fraction of a point, consistent with a rule based on value.

Where intent routing helps and where it does not

Intent routing is useful when many venues compete for the same trade and the best one changes from minute to minute. It is less useful if the underlying liquidity is thin, since no route can fix that. Consolidation reduces friction but does not reduce the risk of the protocols called in the bundle. Each additional integration adds a smart contract to the chain of trust.

A short checklist before using any routed strategy:

1. Read what the transaction will do, step by step.
2. Check the token approvals you are granting and for how much.
3. Compare the quoted outcome with a direct route for a small amount.
4. Start small.

Where this connects

Routing is the base layer under the other features. Auto-compounding in the compounding article depends on swapping rewards into ETH. Scoring in AVS scoring and LRT rehypothecation risk helps choose where to route funds. The how it works page shows the whole flow, and the risk disclosure lists the hazards. For the history of the project, see From Tortle Ninja to AutoLayer.

Takeaway

AutoLayer does not trade for you. It picks the route, bundles the steps into one transaction, and records one point per dollar of value that passes through its proxy contract. Check the app for current behaviour before you act.