Article 1 - Genesis Notes - The goal of The state of Account Abstraction - a monthly report built by the AAlliance- is to be the synthesis of the AA market from an adoption point of view. We believe that the state of the market is composed of the latest progress of all projects that form it. From that perspective that's what we'll be reporting here. We'll start with 5 projects and grow at every new edition, ultimately painting a picture of the entire market.
Market Overview
The month of July 2024 has been an exceptional month for AA adoption. This can be visualized by the amount of User Op calls made per day on all chains. In the last 30 days the daily User Op calls grew over 300% .
Base is taking over
Breaking it user Op by chain we have a clearer vision of what is happening in the space. Polygon who dominated the space with this metric, maintaining around the same range count of calls per day in the past few months, was quickly surpassed by Base in a spetacular way.Virtually all the growth that happened in the past month was because of the increase of UserOp calls made on the Base blockchain.
When we look at the daily active users, we see the same pattern, a huge increase in the past 30 days. Less than half of the calls are generated by the same senders, nonetheless, it is still an impressive number, 200% higher than a month ago.
When we break it down by chain, we see that the Base's growth also mean that they're targeting several unique users, surpassing Polygon for the first time.
What is driving this adoption?
The adoption of Account Abstraction and increased User Op on Base was reported back in June by 0xKofi. Back then Polygon was still beating base on unique User Ops, and the main app responsible for this growth was Alfa Frens.
Fast forward to today (only one and a half month later), another dapp is leading adoption on Base. Blocklords Dynasty has been generating significant amount of User Op txs with their contracts being called during the gameplay for essentially every action in the game. One interesting consequence of this massive growth on Base is the decrease of marketshare of Biconomy. As we can see, Biconomy User Ops marketshare fell quite significantly in the last two months.
Notable Events
Base's Onchain Summer leading the adoption of Coinbase Smart Wallet.
Binance Labs Invests in Particle Network.
AAlliance Members and Updates
This section provides an overview of AAlliance members and their monthly updates. Collectively, these updates offer a comprehensive view of the current state of Account Abstraction, particularly in terms of adoption.
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 got supported by Binance Labs:
Aarc is launching a new version of their "Fund Kit" on 12th August which would enable Account Funding and Checkout flows from Exchanges, Cards and Wallets.
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
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
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.
Monthly Updates
Hedgehog has received the Arbitrum Foundation Grant for building the Modular Synthetic Blockspace; Hedgehog Protocol is now live on the Sepolia Testnet, with over 1000 unique users in the first week; Hedgehog hosted a successful side event at EthCC together with Prom and Ankr.
Find More About Hedgehog Protocol
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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.
Monthly Updates
Picnic was the first ERC4337 wallet to launch on Moonbeam.
Picnic has also improved their internal infrastructure, especially to deliver faster and more reliable transactions. This resulted in its best month ever in swap volumes! Picnic has grown 800x since last year in traded volume.
Find More About Picnic
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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!