F.A.Q. - Wallchain

Is it self-custodial?

Yes, Wallchain is a fully self-custodial solution. We never have access to user private keys or seed phrases or control over smart accounts.

Do I own the smart account deployed by Wallchain?

Yes, fully and exclusively. Even though the SmartAccount is deployed by Wallchain, it uses a common standard ERC-4337 implementation by ZeroDev.ZeroDev implementation is the most popular implementation of Account Abstraction protocol with over 2 million accounts deployed to date.

Who pays for gas?

The user pays once for gas to issue an ERC20 allowance. Wallchain pays for gas on L2s for deposits and withdrawals.On Ethereum Mainnet, Wallchain sponsors the gas for deposits and withdrawals carrying 1 ETH value or more. Wallchain always sponsors rebalancing transactions. The frequency of those transactions depends on the size. The more value, the more it makes sense to rebalance.Wallchain has this initiative to boost the active growth stage.

What is smart account / account abstraction and session keys?

Smart Account and Account Abstraction are used interchangeably for simplicity.

There’s a fundamental limitation of : It’s impossible to program. Account Abstraction (ERC-4337) is a widely adopted protocol with few implementations that allow plugins.Wallchain uses ZeroDev implementation of Account Abstraction (AA). It has been fully audited and deployed for more than 2 million accounts. ZeroDev has many plugins for those accounts to enable programmability and advanced security.One of the plugins is the Session Keys. It has been thoroughly audited, and in essence, it allows you to delegate part of the strict responsibility over funds to another entity.Session keys (SK) are very fine-grained and have restricted rules on what one can do with them. For example, one can create an SK that can only transfer money from account A to B via the TranserFrom ERC-20 function. It would be impossible to transfer from A to C. Also, one can put a limit on the amount to be transferred.The ability to highly customize the permissions of SK creates a secure way to connect EOA with yield vaults by AA Account being a middleman. AA Account has permission to transfer crypto back and forth between EOA and AA. It also has deposit and withdrawal permissions for the vaults deployed on specified addresses.Session Keys are revocable. Once revoked, they can never be used again, and new SKs should be generated to use Wallchain.Altogether, it creates a safe way to delegate onchain funds managemant.You can find Account Abstraction usage stats on Dune dashboard.

Why emergency withdrawals?

Better safe than sorry — in case of meaningful FUD on social media, a significant TVL drop, or a signal of possible compromise, Wallchain automatically withdraws all user funds from this specific protocol back to their wallets.This is especially critical when the event happens unexpectedly. E.g. at night. Wallchain is an additional layer of security when your funds are deposited in protocols.Automated withdrawal is possible since Wallchain has permission on the vault to withdraw funds to your account programmed inside the Session Key.For more info on permissions, please see the Session Keys section.

What do I sign when I click on the Enable Auto Yield button?

You’re singing the Session Key, which can execute restricted deposits and withdrawals from a predefined list of protocols. The full list of requested permissions can be found in our repo.

What about audits?

Wallchain is built on the most used and battle tested account abstraction infrastructure, ZeroDev. List of audits:

ZeroDev - the most used Account Abstraction implementation. multiple audits
Session Keys Plugin implementation. multiple audits

How does automatic withdrawal work?

Wallchain uses Session Keys (SK) provided with the Account Abstraction to trigger withdrawal for the user. It can only trigger withdrawal from previously enabled protocols and only withdraw back to the user address.

Read more about Session Keys and Programmable and security here.

Insurance

Wallchain provides insurance for early adopters. Please, message us in Telegram with the address to check if you qualify.

Which protocols are used for Restaking and Yield generation?

Wallchain integrates protocols based on user requests, market sentiment, TVL, safety, and other factors. You’re welcome to make your protocol proposals on telegram chat. Each user can opt-in and opt-out of any available protocol.

How do I ensure Wallchain doesn't take my funds / deposit them into a lousy protocol?

Wallchain never has access or control of user funds. It’s never technically possible to deposit funds to a lousy(not approved by the user) protocol or withdraw to a different address from the user’s. This is ensured with fine-grained and strict permissions from the Session Keys provided by Account Abstraction.Additionally, Wallchain is required to have a few more restricted permissions to automate the whole process.They are the following:During the deposit:

Transfer from EOA to users AA (one permission).
Issue the ERC20 aprroval to a vault.
Call deposit on the vault. (actions 2,3 repeat for each of the pre-approved protocols).

During the withdraw: 4. Call withdraw to AA. 5. Call ERC20 transfer from AA to EOA.Please note that each action has a strictly pre-programmed receiver and beneficiary - the user or pre-approved vault. All of the permissions are listed in this repo.

How do you manage slippages?

Wallchain only uses stable pools with close to 0 slippages. Moreover, thanks to automation, Wallchain can swap with better slippage executing prolonged limit orders.

Can I customize my strategy?

Yes, Wallchain aims to provide both efficiency of yield and point generation and customization of the strategies.You can disable any of the integrated strategies, change priorities, change your risk assessment, or even add your own.We’re keen to receive feedback, please provide directly to the team or in the Wallchain’s group chat.

Introduction