Gas abstraction layer Zyfi closes $2m private funding round

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As a crypto investor with several years of experience in the space, I’m excited about the recent development surrounding Zyfi and their plans to bring account abstraction to the Ethereum ecosystem through zkSync. Gas fees have long been a major pain point for users looking to engage in decentralized finance (DeFi) activities, and solutions like Zyfi that aim to simplify gas options across protocols are much-needed.

As a crypto investor, I’m excited about the recent news that Zyfi, a project built on ZkSync, has secured funding to launch paymaster services throughout the Ethereum ecosystem. This means that Zyfi will be able to facilitate and streamline transactions across the Ethereum network more efficiently than before. Essentially, it’s like having a trusted intermediary to handle financial transactions on your behalf, making the process smoother and more convenient for all parties involved.

Zyfi, a gas abstraction layer, secured $2 million through a private investment round to initiate native account abstraction on zkSync. This endeavor is expected to significantly impact the decentralized finance (DeFi) sphere as a whole.

As a crypto investor, I’ve noticed that the adoption of blockchain technology and cryptocurrencies has made significant strides in recent times. However, managing my digital assets using self-custodial wallets like MetaMask and executing on-chain transactions can still be challenging for some of us.

As a researcher focusing on decentralized finance (DeFi), I’ve identified a significant challenge: the issue of transaction fees, or “gas,” that users pay miners or validators for processing transactions. Zyfi aims to tackle this hurdle by channeling investor capital towards streamlining gas choices across various protocols and solutions.

Zyfi’s account abstraction thesis

As an analyst, I would explain it this way: With zkSync’s layer, I can pay the gas fees for my transactions on Ethereum or any ERC-20 token. This solution simplifies the gas issue for users. Zyfi implements this functionality through native account abstraction.

Vitalik Buterin, one of Ethereum’s co-founders, is excited about account abstraction being the key to increasing usage and making it easier for new users to join the Web3 community.

Although commonly used for holding cryptocurrencies, EOAs come with certain functional limitations. However, account abstraction, a feature introduced by Buterin and other developers, transforms EOAs into more versatile entities, allowing them to execute complex transactions and behave similarly to smart contracts.

Users are granted additional capabilities with the unlocked functions, enabling them to personalize payment options such as customizing gay payments, setting spending limits, and activating social recovery features.

Based on data from Dune Analytics, Zyfi has implemented this technology in approximately one million transactions and for over 110,000 users on zkSync. According to Gauthier Vila, the company’s founder, these investments will enable developers to focus solely on improving their offerings for end-users.

Several firms including Everstake Capital, Tenzor Capital, APVC.capital, Criterion Venture Capital, NxGen, Majinx Capital, v3ntures, and Momentum8 took part in the private investment round.

I’m thrilled to announce that we, at Zyfi, have achieved an important milestone: securing $2M in private funding. This investment represents a significant step forward in our mission to revolutionize the on-chain experience by introducing native account abstraction for all wallets. 😊

— Zyfi (@Zyfi_org) June 10, 2024

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2024-06-10 21:55