Abstract Account in Action on ReHold

One of the pertinent problems since the inception of cryptocurrency and its evolution into more critical aspects like decentralized finance (DeFi) has been the difficulty in interacting with its various components, from exchanges to protocols, etc. This problem is usually tagged as an [unpleasant] "user experience" crisis and has acted as a barrier, limiting user adoption and hindering its broader acceptance.

The user experience challenge has led many to compare the crypto industry (Web3) and its counterpart, Web2, which boasts a more straightforward design. Despite Web3's superior offerings, it has struggled to achieve the widespread adoption necessary for growth. Several notable innovations have been introduced within the cryptocurrency world to address this and provide a more delightful user experience, including Ethereum's "Abstract Account" feature.

Abstract Account adopts a more user-centric approach, enhancing flexibility in how users interact with one of the core cryptocurrency products — cryptocurrency wallets — to improve transactions and facilitate adoption. User-centric and dedicated DeFi protocols, like ReHold, leverage this approach to offer features such as gasless transactions.

Understanding Abstract Account And How it Functions 

Account Abstraction, technically known as ERC-4337, presents an innovative solution tailored for Ethereum wallets, enabling them to provide features such as gasless transactions, two-factor authentication, and multi-signature characteristics.

To grasp the concept of account abstraction and its functionality, it's important to define critical terminologies encompassing its essence, particularly in relation to Ethereum accounts. Essentially, Ethereum features two types of accounts: the Externally Owned Account (EOA) and the Contract Account. Let's go deeper into each:

Externally Owned Account: This type is prevalent among users and allows user-initiated transactions on Ethereum. The fundamental characteristic of an EOA is its operation utilizing private and public keys. Notable examples include MetaMask and Trust Wallet.

Contract Account: This type of account is managed by predefined code sets responsible for driving transaction execution. Their programmable nature enables them to carry out various types of transactions as specified in the codes.

A limitation of EOAs is their restrictive nature. Users are confined to initiating transactions and paying gas fees solely through their EOAs, lacking features like batch transactions that could enhance flexibility. Account abstraction enhances Externally Owned Accounts (EOAs) by integrating smart contract logic, expanding their use cases, and overcoming previously identified limitations. This upgrade allows programmable wallet access without requiring users to comprehend or interact with the underlying code, granting this permission to the EOA.

Benefits of Account Abstraction

Account abstraction introduces flexibility into Ethereum accounts by addressing some inherent challenges like the risk of account loss (arising from exposed private keys), susceptibility to phishing due to inadequate security, elevated gas fees for transactions, and the restrictive use of Ether (ETH) for gas fee payments, among numerous other advantages. Account abstraction tackles these issues more effectively through a distinctive approach, broadening use case opportunities and enhancing blockchain customizability. Let's explore some of these benefits.

Transaction Limits Feature: Wallets can now implement spending limits on an account by evading the necessity for an Elliptic Curve Digital Signature Algorithm (ECDSA) traditionally used to authorize transactions on EOAs and incorporating smart contract features. This approach enhances security by mitigating the risks of fraud and unauthorized access.

Non-ETH Gas Fee Feature: With the integration of ERC-4337 into wallets, a notable feature emerges: users now have the option to cover gas fees using other ERC-20 tokens instead of ETH. This is facilitated through a 'relayer,' which covers the transaction cost in ETH on the user's behalf and is compensated in return with an ERC-20 token.

Trusted Session Feature: Ethereum-based accounts (EOAs) are designed such that every transaction on a user's account requires multiple approvals before execution. However, with account abstraction, dApps can autonomously sign transactions on behalf of users within a specified time frame using what are known as session keys. This proves particularly beneficial for gamers who frequently need to approve multiple transactions during gameplay. It's also invaluable when interacting with specific dApps requiring multiple payments while using it. 

Automatic Payment: This is closely related to the trusted sessions explained earlier. The automatic payment feature brings Ethereum-based accounts (EOAs) closer to users, making them more intuitive, much like Web2 applications. This feature automates payments, enabling subscription-based or continuous payment models with cryptocurrency, thereby expanding EOA use cases. This is possible by abstracting the signatures needed in transactions common to most existing wallets.  

Gasless Transactions: With the implementation of abstraction, users can now enjoy gasless transactions. Rather than paying for gas fees directly, dApps can assume the responsibility of handling all gas fee payments, rendering interactions with such dApps seamlessly convenient.

Integrating account abstraction through ERC-4337 unlocks limitless potential, ushering in a new era of how Ethereum accounts are utilized for transaction processing. Additional advantages of ERC-4337 include support for multiple signatures on a single account, a social recovery feature to prevent account loss, and enabling batch transactions, which substantially reduce costs, among other benefits.

Implementing Account Abstraction at ReHold: Elevating User Experience and Simplifying DeFi Access

ReHold enhances the DeFi experience with a user-friendly journey into cryptocurrency, made effortless by account abstraction. This innovation streamlines onboarding by removing many gas fee steps, easing access for newcomers and existing DeFi users.

Integrating account abstraction, ReHold unlocks Dual Investment's full potential on seven chains: Ethereum, BNB Chain, Arbitrum, Polygon, Optimism, Avalanche, and Base. Users can stake ETH/USDT for 12 or 24 hours, targeting up to 220% APR. This is enabled through CLMM, providing a more efficient alternative to traditional AMM.

By merging account abstraction into ReHold's protocol, users can enjoy gas-free operations while staking their assets to earn passively. The features supporting this on ReHold include Limit Order, Replay, and Auto Replay. Let's go deeper into how these features collectively enhance the overall DeFi experience for our users.

Limit Order: Limit Order, also known as Limit Dual, allows users to set an order either above or below a market price, triggering a Dual Investment automatically upon reaching the specified price, all without incurring any gas fees.

Replay: Replay operates similarly to the term reinvesting. This gas-free feature enables users to seamlessly re-engage their Dual Investment trades following the conclusion of a staking period. Once the initial trade has been completed, Replay kickstarts another trade, retaining the initial investment and APR on identical pairs or making adjustments based on prevailing market conditions. 

Auto Replay: This is simply an automatic replay. Once activated, Auto Replay perpetually replays users' capital along with the generated APR until manually discontinued by the users or until the input amount reaches the predefined minimum or maximum limits.

Through these features, ReHold maintains its commitment to ensuring a cost-effective approach for users to get involved in decentralized finance (DeFi) and, more importantly, frictionless methods.  

Advancing User-Centric DeFi Solutions: The ReHold Pledge

ReHold's introduction of gas-free features demonstrates our commitment to simplifying user experiences and facilitating the growth of the decentralized finance (DeFi) ecosystem. 

The strategy of account abstraction is pivotal in realizing this vision, marking just a facet of ReHold's broader commitment. By simplifying the deployment of capital through our Concentrated Liquidity Market Maker (CLMM) system, ReHold not only enhances user satisfaction but also signifies the importance of attracting more participants to the DeFi sector, as reflected through the potential of earning a high annual percentage rate (APR).

Looking ahead, ReHold isn't stopping here; a range of innovative technological solutions and unique DeFi earning opportunities are on the horizon. These forthcoming upgrades strengthen our core operations and align with our overarching mission of fostering a user-centric DeFi landscape. Dive into financial empowerment with ReHold V2 and unlock passive earnings of up to 220% APR on token pairs.