Article 2 - It has been two months since the last report, a lot has happened in all projects in the AAlliance and consequently in the entire space. During this time, the AAlliance grew, now we count with XY projects from several different niches in the space, making this report closer and closer to the state of account abstraction.

Market Overview

September saw a consolidation in AA activity, followed by a new leg up in October 2024. This is evident from the number of UserOp calls made per day across all chains. Over the past 60 days, daily User Op calls have stabilized around 400k per day, with sudden spikes to 600k calls per day in early October.

However, this consolidation doesn’t tell the whole story. By breaking it down by chain, we can better understand the dynamics at play.

Base is Consolidating, Other Chains are Growing Again

Base experienced a peak around the time of the last report, driven by the use of games and the launch of Coinbase Wallet, reaching over 80% of all UserOp transactions in July. Polygon, which once dominated this space, is gaining traction again. Arbitrum is also showing growth, currently accounting for around 30% of all UserOp transactions across chains.

The recent spikes in October occurred across all chains but were particularly prominent on Base, pushing its dominance in UserOps calls back to over 60%.

Although Base lost some dominance in September, with a slowdown in activity, the October spikes suggest that any new events sparking activity can quickly push Base back to all-time highs.

Unique users

Looking at unique Daily Active Users, Account Abstraction solutions continue to onboard new users at a fast pace, with users consistently engaging with these solutions.

Filtering active users by chain provides further insight into AA adoption over time. Polygon led in active users until July when Base surged. Base has since consolidated, and both Polygon and Base now share the majority of daily active users, at 52% and 48%, respectively.

Chain Abstraction Narrative is growing

The Chain Abstraction narrative has grown significantly over the past year, emerging as one of the most relevant trends. Kaito’s Mindshare metric highlights this growth.

a16z's recent crypto report also underscores how Chain Abstraction is generating more social mentions than Account Abstraction. Notably, both Account and Chain Abstraction are on the list of emerging trends, reflecting strong sentiment around the theme and significant room for growth.

AAlliance Members and Updates

This section provides an overview of AAlliance members and their updates. Collectively, these updates offer a comprehensive view of the current state of Account Abstraction and Chain Abstraction, particularly in terms of adoption.To make it easier to search them using this Mirror format, simply ctrl + F any of the following projects in this report:Hedgehog, Picnic, Zyfi, Ditto, Aarc, Balloon, Dogs, Enclave, Hedgemony, WalletX, Particle Network, Socket Protocol.

Aarc

What is Aarc? Aarc is a modular protocol for building chain abstracted decentralized applications (dApps). Aarc developers can seamlessly unify users' accounts and liquidity from any blockchain without the complexities of multi-chain deployment, dApp migration, or contract modifications. Using our intuitive and use-case-specific SDKs, developers can create chain-agnostic dApps in just a few days. In today's multi-chain environment, Aarc aims to create a future where dApps can function without the burden of chain-specific considerations and quickly access a multi-chain user base.

Monthly Updates

Aarc will be launching v3 of the fund kit around end of this month. Building our thesis on our protocol layer and closing 3-4 design partnerships. We'll be attending Binance Blockchain Week this month and Devcon in November, looking forward to meeting folks there.Aarc is also working on their protocol layer aimed at solving multichain liquidity and onboarding problems for DeFi primitives by introducing a composable liquidity layer for protocols to plug into.

Find more about Aarc

Blog | Docs | Linktr.ee

BalloonDogs

What is BalloonDogs?

BalloonDogs is the first Unified DeFi Abstraction Layer, designed to eliminate the complexities of blockchain technology. By removing technical barriers such as gas management, cross-chain coordination, and protocol interactions, BalloonDogs creates a seamless DeFi experience for developers and users.

Unified, Secure, and Account-Centric Experience

With BalloonDogs, you manage assets across multiple blockchains using a single, unified account. No more switching wallets or managing different chains. All interactions occur within this account, providing full non-custodial control—allowing you to retain ownership of your assets without the hassle of managing private keys or seed phrases.

BalloonDogs UpdatesAs the first BIA event winners and a member of the Binance MVB program, BalloonDogs will be attending Binance Blockchain Week 2024 in Dubai. Ofir, the founder, will be speaking at the event.

Find more about BalloonDogs

Ditto

What is Ditto?

Ditto Labs is building a trustless actively validated keeper network to run event-driven workflows with economic guarantees of execution leveraging shared security principles. In addition, Ditto offers various intent-centric account abstraction automation modules introducing the future of embedded finance solutions in Web3.

Monthly Updates

We've published an article highlighting our product roadmap and comparing it with some peers. Additionally, we're preparing an update for our SDK v1 that supports Account Abstraction Automation Modules.

Find more about Ditto

Enclave

What is Enclave?

Enclave is a chain-abstracted wallet with enhanced transaction execution, powered by an innovative intent-solver auction house.

Key Features:

1. Unified USDC Balance: Users can seamlessly spend their USDC across multiple chains without the need for bridging. For example, depositing 100 USDC on Arbitrum and receiving 50 USDC on Base allows for transactions on Optimism with a total of 150 USDC, executed instantly and without bridging hassles.

2. Gasless Transactions: All transactions are completely gasless, with gas fees integrated into the bid-offer spread, simplifying the user experience.

3. Easy Self-Custody: Users do not need to manage private keys or seed phrases. Instead, they operate a fully custodial smart contract wallet secured by a passkey, ensuring robust protection of their assets.

Find more about Enclave

Hedgehog Protocol

What is Hedgehog?

Hedgehog is an infrastructure for Modular Synthetic Blockspace that allows the creation of any onchain native derivative. We're focusing on AA wallets, L2 rollups and similar 4337 paymaster use cases for hedging BaseFee, as a first use case.

Hedgehog Updates

Hedgehog continues building the Modular Synthetic Blockspace; Hedgehog Protocol is live on the Sepolia Testnet, with over 3000 unique users, and growing organically! A lot is being done behind the scenes, can't wait to share soon! Our team will be attending Devcon in Thailand, if you're going there, hit us up, let's meet!

Find More About Hedgehog Protocol

Hedgemony

What is Hedgemony?

Hedgemony is an intent-driven execution layer. It delivers express access to multi asset routing, tailor-fit hedging, and automated asset management strategies. Navigate DEXs, lending, yield farms, and other derivatives synchronously via conditional triggers and adaptive logic.

Hedgemony Updates

Hedgemony's MVP will be deploying on Arbitrum at the End of October. Early Access users can test out and provide feedback on our:

• Multi asset batch swaps

• Syncronized trading and yield capture strategies

• Highly configurable limit orders & DCA framework

Strategic partnership integrations with: Curvance, Kintsu, Fere AI, Amplifi, and more

Find More About Hedgemony

Particle Network

What is Particle Network?

Particle Network’s main product is Universal Accounts (UAs). Through UAs, any Web3 user can have a single account, balance, and interaction point to be used across all chains. This achieves ✨the experience of chain abstraction✨.

Particle Updates

Phase 2 of Particle Testnet is live!

Find More About Particle Network

Picnic

What is Picnic?

Picnic is a consumer app making DeFi as easy as fintech. The experience is so seamless that normies can go from fiat to onchain swap in less than 2 minutes (https://www.loom.com/share/475b5e48e35848d4a0db7c3f1e69bfa2?sid=d831fa8c-ece4-49ac-9037-91fa103e04aa).

Picnic is leading consumer DeFi and currently responsible for 50% of swap volumes using ERC4337.

Picnic Updates

Picnic is live in Europe!

New things coming out:

• Simplified onboarding for non-web3 natives

• New dashboard organization

• 200+ new tokens

Find More About Picnic

Socket Protocol

What is Socket?

Socket is the first Chain Abstraction Protocol that allows devs to compose with any app, user and asset across 100+ rollups.

Socket Updates

The first version of Socket's whitepaper is out. Check it out:

Find More About Socket

WalletX

What is WalletX?

WalletX is a gasless non-custodial smart wallet solution for everyone. It allows users to do 100% gas-free transactions across all major EVMs. DApps and other Smart Wallets can utilise our APIs for free to provide the same experience to their users.

• No need of native tokens for degens claiming free mints

• No need to explain gas fees to your no-coiner users

• Integrate the non-custodial wallet right inside your DApps

• Integrate gasless transactions in your Smart Wallets

How does it work? WalletX has created a gas abstraction solution for users by creating paymaster across EVMs using Account Abstraction and ad revenues. WalletX pays for your gas.

Some Key Highlights

• 100% bootstrapped project and all-organic marketing

• Winner of ETHOnline '23, Gitcoin GG19 & GG20

• Fully operational and LIVE across major EVMs

• Now raising $1M in Seed Round

WalletX's mission is to lead the Gas Abstraction ecosystem for web3 by providing advertisement opportunity to reach real on-chain users in the most cost effective way.

Find More About WalletX

Zyfi

What is Zyfi?

Zyfi, supported by Matter Labs, is building tooling for native account abstraction, without need for users to deploy a smart wallet. User can directly pay gas with any token or have their transaction sponsored according to any custom logic. Zyfi hold a dominant position within ZKsync, seamlessly integrated into the majority of Dapps within its ecosystem (PancakeSwap, Mithraeum, Cronos zkEVM), which allows them to offer an unique user experience.

Monthly Updates

Elastic Chain Deployment: Zyfi have been in contact with several Elastic Chains on ZKsync and have already deployed their paymaster contracts on all of these chains. Cronos zkEVM and Abstract for example. Zyfi also released a "one for all" paymaster for the entire ZKsync ecosystem. Everyone can now create his own signer and use an audited and flexible paymaster contract provided by Zyfi.

Find More About Zyfi

What is AAlliance

AAlliance is collaborative community of builders in the AA space.

Our aim is to create a space where members can connect, share resources, discuss possible pain points, assist one another, and work together towards the adoption of AA.

AAlliance encourages a warm and private environment for effective BD, research and general collaboration, helping to strengthen the AA narrative.**Are you an AA builder?**Are you building an AA project and want to be part of a community of builders pushing forward the adoption of AA? DM @ezzzko on Telegram and introduce yourself!