Mantis was engineered to be a novel solution, delivering a number of industry firsts to satisfy unmet user needs. For example, we have created the first L2 on Solana, where we are building the first cross-chain intents settlement framework. Mantis is also pleased to be bringing the first request-for-quote (RFQ) system to Solana. This will enable RFQ-based swaps and exchanges on Solana for the first time.

As we discuss in this article, RFQ-based swaps and decentralized exchanges (DEXes) present a superior option to standard swaps and DEXes. Key benefits include clearer, customized prices as well as enhanced transaction privacy and security. Mantis delivers these benefits to Solana for the first time - along with the additional advantages of cross-chain interoperability and the ability for anyone to join as a user or solver.

Keep reading to find out more about why it is important to bring an RFQ system to Solana, and how Mantis achieves this.

About RFQs in DeFi

RFQ is a type of quote-driven trading where a buyer essentially invites sellers to bid on the transaction/sale. RFQ prioritizes the transaction initiator’s best interests via a competition of other actors trying to fulfill the other side of their trade. RFQs can be leveraged in swaps directly. Or, they can be incorporated into organized marketplaces (RFQ decentralized exchanges) in order to deliver these benefits more effectively.

On standard DEXes, automated market makers (AMM) and liquidity pools are key features. AMMs stand at the ready to meet trades using algorithms, and liquidity pools act as a source of funds for meeting these trades.

In contrast, RFQ systems use professional market makers who provide custom quotes to users upon request. Users can then accept or decline these quotes. If the user chooses to accept the quote, a non-custodial smart contract carries out the transaction between the market maker and user.

Here’s a summary of how standard and RFQ-based DEXes compare:

When compared standard decentralized exchanges (DEXes), RFQ-based swaps thus have a number of advantages:

• No third party custodian/intermediary holding users’ assets (which would increase risk)

• More dynamic, customizable prices

• Clear, more stable pricing (prices do not change after a quote is given, such as from gas or slippage)

• More private transactions

The Mantis Solver-Based RFQ System

The Mantis rollup is home to the Mantis solver-based request-for-quote system. This is the first of its kind: currently, there are no RFQ systems on Solana, so Mantis will bring swaps with RFQs to the network for the first time. This will further enable new or existing DEXes to implement RFQs and provide their users with the associated benefits.

On Mantis, the RFQ system is carried out by our network of solvers. These solvers compete to provide the best solution (according to a scoring system prioritizing users’ intent specifications). They are able to send out quotes to various parties such as automated market makers, seeking the best deals for users. This provides best execution.

Through this design, Mantis delivers additional benefits beyond those already offered by RFQs:

• Cross-chain Interoperability: The Mantis RFQ system is cross-chain, allowing for even greater functionality and opportunities for quotes to and from Solana, not just on Solana alone.

• Accessibility: Anyone can become a user or a solver on Mantis, enabling them to benefit from best execution or rewards, respectively.

Summary

RFQs clearly provide a number of unique advantages compared to standard swap mechanisms. However, there are currently no RFQ systems in the Solana ecosystem to support these RFQ-based swaps. Mantis brings this opportunity to Solana for the first time, allowing anyone to benefit from RFQs not only on Solana but also between Solana and other IBC-enabled chains.