ReHold Integrates ERC20Permit for Enhanced User Experience

To gain traction in decentralized finance (DeFi) and usher in a new wave of a billion users, it's essential to streamline the ecosystem. By offering a user-friendly and familiar approach tailored to each unique feature, we can ensure users seamlessly harness the full potential of DeFi applications without facing hindrances.

ERC20Permit exemplifies this initiative, standing as a reflection of user-centric design. It facilitates more efficient interactions with decentralized applications (dApps), broadening the system's appeal. ReHold's integration of ERC20Permit displays our commitment to enhancing user experience and efficiency.

In this piece, we delve into the intricacies of ERC20Permit, explore the strategy behind its adoption on ReHold V2, and unpack its implementation for our esteemed users.

Understanding ERC20Permit

ERC20Permit is an extension of the ERC20 token standard, formally known as "Ethereum Request for Comments-20," pivotal in the creation of fungible tokens such as Tether USD (USDT), USD Coin (USDC), all while harnessing the power of EIP712 signatures. At its core, ERC20Permit is envisioned to usher in groundbreaking solutions to age-old blockchain challenges, simultaneously strengthening security and introducing advanced features.

To provide context, most dApp transactions traditionally undergo a two-step approval, each adding to the gas fee and complicating the user experience. ERC20Permit revolutionizes this by batching transactions and consolidating multiple approvals into a single step, enhancing both simplicity and cost-effectiveness for users.

How ERC20Permit Works

Popularly referred to as ERC2612, ERC20Permit introduces the concept of permit for transactions on dApps via the EIP712 signature. The EIP712 signature eliminates the need for separate approvals — 'approve' and 'transferFrom' — and simplifies them using the 'permit()' function.

The EIP712 signature comprises a string of messages instructing the smart contract that a user is approving a specified account to send a certain amount of tokens on their behalf, allowing the transaction to be completed in a single approval step. This EIP712 signature is generated using the user's private keys.

ReHold V2 Supports ERC20Permit: Simplifying User Flow and Transaction Process

ReHold has implemented ERC20Permit to simplify user interaction with the ReHold protocol and significantly reduce gas fees otherwise incurred from additional steps in the transaction process.

While ERC20Permit is the default on ReHold's protocol, we recognize the need for users to maintain control over their transactions. As such, we also offer the conventional ERC20 standard approval, especially given that some ERC20 tokens, dApps, and Web3 wallets may not be compatible with ERC20Permit.

Benefits of ERC20Permit

In summary, ERC20Permit offers three core benefits:

1. Reduced gas fees: Users save on gas fees by batching transactions into one approval.
2. Eliminated friction and improved user flow: Fewer steps are involved when users interact with token contracts, improving the user experience.
3. Enhanced security: Users can set time limits and maximum transferable token amounts in their signature, reducing the risk of unauthorized transfers.

How to Use Abstract Account Gas-Free Features

Beyond ERC20Permit, ReHold V2 introduces 'abstract account,' a pioneering feature that facilitates gas-free transactions, elevating the user experience.

Through this abstract account, ReHold's smart contracts can seamlessly introduce gas-free functionalities such as Limit Orders, Replay, and Auto-Replay, thereby enriching user interactions and scalability.

Here's how these features work on ReHold V2:

• Limit Order: A gas-free feature allowing users to automate trades by setting orders triggered at specific price levels, known on ReHold as 'Limit Orders.'
• Replay: After a staking period ends and yields are returned, Replay enables users to reinvest their trades without incurring gas fees.
• Auto-Replay: This feature automates the Replay function, so trades are automatically reinvested at the end of each staking period unless parameters change or Auto-Replay is disabled. This is also gas-free, simplifying the process.

Conclusion

ERC20Permit is just one of many ways ReHold continues to deliver quality and innovation to its users. Alongside integrations like the abstract account, there is a plethora of benefits for users to explore. As the world of DeFi evolves, ReHold plans to introduce even more unique, beneficial, and user-centric products. Discover what's next and experience the future today with ReHold V2.