zkSync Abstraction Layer Zyfi Attracts $2M Investment to Drive Gas Abstraction Innovation

CryptoNews.com

2024-06-10 05:00:17

Abstract generation in progress

Shalini Nagarajan

Last updated:

June 10, 2024 09:00 EDT | 1 min read

Zyfi, a gas abstraction layer on zkSync, said Monday that it raised $2m in a private funding round, with investors including Everstake Capital, Tenzor Capital, and Apvc.capital.

The funding will be used to create software tools for developers and a to manage payments in dApps. It will also be used to pay for research into a new way to handle accounts that work across different blockchains. This research will include developing a based on the EIP-7702 standard.

Ultimately, the goal is for dApps or foundations to fund most transactions, instead of individual users footing the gas fee bill.

What is Zyfi? It is a “Paymaster-as-a-Service” that takes the complexity out of gas fees for users on zkSync, an Ethereum L2-scaling solution. It simplifies tools for dApp developers, providing an easy-to-use tool to handle gas fees within their applications.

Zyfi has become a go-to solution for many popular protocols. It has handled over 815,000 transactions and eliminated gas fees for over 110,000 users on zkSync. Some examples include Zerolend, Increment Fi, Pancakeswap, zkMarkets, Libera, and even various NFT collections built on zkSync.

Zyfi Empowers Users and Developers in the zkSync Eco

Here’s how it works: Zyfi takes advantage of zkSync’s built-in account abstraction features. This allows dApps to offer users the choice to pay gas fees with any ERC-20 token they hold, instead of needing a specific crypto. DApps themselves can choose to sponsor some or all of the gas fees for their users. A simple API powers this flexibility, allowing them to focus on building dApps without worrying about gas fees.

On top of its payment service, Zyfi acts as an entry point to the zkSync network that doesn’t require gas fees. This allows users to enjoy several benefits. These include finding the best exchange rates and transferring tokens without needing Ethereum for gas. Also, users can interact with protocols that don’t yet have their own payment if they create custom transactions.

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