Concepts

Account Abstraction

Link to key terms on Externally Owned Account (EOA).

Understanding EOA and AA

In this section, we’ll dive into two fundamental concepts: Externally Owned Accounts (EOA) and Account Abstraction (AA). Grasping these concepts is essential for leveraging our platform’s capabilities to their fullest.

Externally Owned Accounts

An Externally Owned Account (EOA) is the traditional form of blockchain account. It’s controlled by a private key, and only the holder of that key can initiate transactions. EOAs are the backbone of cryptocurrency wallets and transactions.

Key Points

  • Control: Directly controlled by the private key holder. This is an advantage and limitation.
  • Transactions: Can send transactions (transfers, smart contract interactions) initiated by the user.

Account Abstraction

Account Abstraction (AA) simplifies the user experience by abstracting away the complexities of blockchain interactions. AA allows for accounts that can be controlled by smart contracts, enabling more flexible and programmable conditions for transactions.

EIP-4337

The Ethereum Improvement Proposal (EIP) #4337 is the currently ratified initiative that introduces smart wallet customizability & account abstraction. It is an advancement upon EIP-2938, the former favorite, which sought to provide smart wallet capabilities by fundamentally rewriting Ethereum protocols with verification on fee payment logics. This would have impeded scalability, and so EIP-4337 made consensus layer prerequisites inconsequential. Instead, a memory pool is made to house UserOperation objects on user intent packaged with other verification metrics, such as ecosystem conditions on trades, multi-sig authority, and more. This is bundled as a conditional decision complex on unconfirmed transactions and included with the next Ethereum block. A new regime, known as bundlers, pay the upfront cost of this complex and are compensated through fees allocated to each transaction.

Advantages

  • User-Friendly: Makes blockchain interactions more accessible to users.
  • Programmable: Allows for custom rules and logic to control transactions.

Key Differences

While both EOA and AA play crucial roles in the blockchain ecosystem, they serve different purposes:

  • Control: EOAs are controlled by individuals through private keys, whereas AA accounts are controlled by the logic defined in smart contracts.
  • Flexibility: AA offers greater flexibility and programmability, enabling a broader range of applications.
  • User Experience: AA can offer a more user-friendly approach to managing blockchain transactions, making it easier for non-technical users to engage with blockchain technology.

Understanding the distinction between EOA and AA is crucial for developers and users alike, as it influences how transactions are initiated, managed, and secured on the blockchain.

Now that we have a foundational understanding of EOA and AA, we’re ready to explore how our platform leverages these concepts to enhance your blockchain experience. Let’s dive deeper into the world of native yield abstraction and account management in the following sections.

Yield Generation

User Experience

Session Keys

Within the framework of Native Yield Abstraction, session keys serve a role in managing user assets with precision and security. A session key is a temporally bounded authorization tool, designed to grant limited permissions for specific actions on the user’s behalf.

Defined Permissions

Session keys are made to enable essential actions while maintaining strict security. Here’s what permissions Wallchain requires to make Interest-bearing Accounts work.

Deposit

  • Purpose: Enables the initiation of deposits.
  • Permissions Scope: For each deposit strategy, the scope is to issue ERC20 allowance for target vault contract, call the deposit function on the vault, and reissue allowance back to 0 if needed.

Withdrawal

  • Purpose: Enables immediate withdrawal of funds in the event of a security concern with a connected protocol.
  • Permissions Scope: For each deposit strategy, the scope is to call withdraw function whenever needed for usability or security purposes.

Gas Fees Paid by Wallchain

Wallchain pays for deposits and withdrawal gas spends, offsetting it via yield generated.

Summary

By integrating session keys within the AA framework, Wallchain enhances user security while simultaneously enabling yield accrual.