Technical Implementation

The ZyFAI Smart Account is based on 3 core components:

• Smart Account

• Session Keys

• Agent

Smart Account

On Ethereum, there are two types of accounts: Externally Owned Accounts (EOAs) like Metamask or Rabby, and Smart Contract Accounts.

Popularized by the ERC-4337 proposal, smart contract accounts can transfer and receive tokens on the blockchain but rely on code instead of a private key to secure and recover wallet information.

The benefits of these Smart Accounts are numerous, including:

• Transaction batching

• Gas sponsorship via paymasters

• Session key support

That's why, when you deposit funds through the ZyFAI agent, it automatically deploys a fresh and new smart account on your behalf to manage the funds you just deposited.

Session Keys

ZyFAI uses Session Keys, which are simple keys that provide temporary access to a user's account with specific permissions.

This is especially useful when a user wants to allow an app to execute transactions on their behalf. For now ZyFAI uses session keys which give a wide access to what the agent is allowed to do.

During the onboarding process, you will select the networks and protocols you are comfortable engaging with, guided by your personal risk management.

By doing this, you are configuring the agent to interact with specific protocols' smart contracts based on your choices. The strength of session keys lies in their ability to limit actions based on predefined permissions.

The Agent

The Agent is currently at version V1.1, optimized for stable, predefined DeFi strategies across Sonic, Base, Plasma, and Arbitrum. At this stage, it focuses exclusively on stablecoins and single-sided positions, ensuring both simplicity and capital safety. The Agent continuously scans and reallocates within your smart account, automatically rebalancing to capture the highest available yields from these curated opportunities.

Not only is the yield of each underlying pool monitored, but multiple parameters, such as the interest rate model, TVL, APY stability, slippage, and price impact are also taken into consideration to ensure your funds are always rebalanced into the most optimal opportunity or pool.