Zyfi, a zkSync-based gas abstraction layer, has successfully raised $2 million in a private funding round to enhance paymaster services across the Ethereum ecosystem. This investment aims to simplify the complex gas fee structure in decentralized finance (defi) by leveraging native account abstraction on zkSync.

Despite the growing adoption of blockchain and cryptocurrencies, tools like self-custodial wallets (e.g., MetaMask) and executing on-chain transactions remain challenging for many users. One significant hurdle in defi activities is the gas fee, which users pay to miners or validators for confirming transactions. Zyfi plans to utilize the newly acquired capital to address this issue by offering simplified gas options across various protocols and solutions.

Zyfi’s Account Abstraction Thesis

The zkSync-powered layer enables users to pay gas fees in Ethereum (ETH) or any ERC-20 token, providing a versatile solution to the gas fee problem. This is achieved through native account abstraction, a concept championed by Ethereum’s co-founder, Vitalik Buterin, as a crucial step for increasing adoption and smoothly onboarding more Web3 users.

Standard wallet addresses, known as Externally Owned Accounts (EOAs), have limited functionality. Account abstraction removes these limitations, allowing EOAs to operate like smart contracts. This unlocks features such as customizable gas payments, spending limits, and social recovery, offering users greater flexibility with their wallets.

“Account abstraction is the next step for driving adoption and seamlessly onboarding more Web3 users.” – Vitalik Buterin

Data from Dune Analytics indicates that Zyfi has already implemented this technology for nearly one million transactions and over 110,000 users on zkSync. Zyfi founder Gauthier Vila noted that the investments would help developers focus on enhancing their products for end-users.

Several firms, including Everstake Capital, Tenzor Capital, Apvc.capital, Criterionvc, NxGen, Majinx Capital, v3ntures, and Momentum8, participated in the private funding round, showcasing significant support for Zyfi’s vision.

This $2M investment represents a significant milestone for Zyfi as it continues to transform the on-chain experience through native account abstraction for all wallets.

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