Smart-routers develop greatly in recent years as one of the representative products of IoT and Smart home. Different from traditional routers, they have storage and processing capacity. Actually, smart-routers in the same location or ISP have better link conditions and can provide high quality service to each other. Therefore, for the content required services, how to construct the overlay network and efficiently deploy replications of popular content in smart-routers' network are critical. The performance of existing centralized models is limited by the bottleneck of the single point's performance. In order to improve the stability and scalability of the system through the capability of smart-router, we propose a novel intelligent and decentralized content diffusion system in smart-router network. In the system, the content will be quickly and autonomously diffused in the network which follows the specific requirement of coverage rate in neighbors. Furthermore, we design a heuristic node selection algorithm (MIG) and a replacement algorithm (MCL) to assist the diffusion of content. Specifically, system based MIG will select neighbor with the maximum value of information gain to cache the replication. The replication with the least loss of the coverage rate gain will be replaced in the system based on MCL. Through the simulation experiments, at the same requirement of coverage rate, MIG can reduce the number of replications by at least 20.2% compared with other algorithms. Compared with other replacement algorithms, MCL achieves the best successful service rate which means how much ratio of the service can be provided by neighbors. The system based on the MIG and MCL can provide stable service with the lowest bandwidth and storage cost.