Gas abstraction layer Zyfi closes $2m private funding round

ZkSync-based Zyfi received financial backing to bootstrap paymaster services in the Ethereum ecosystem.

Gas extraction layer Zyfi has raised $2 million in a private funding round to launch native account abstraction in zkSync and, by extension, the larger decentralized finance (defi) environment.

Although the adoption of blockchain and cryptocurrencies has advanced in recent years, tools such as self-storage wallets like MetaMask and the execution of on-chain transactions still remain challenging for some.

The biggest obstacle to identification activities is gas, which is the fee users pay to miners or validators to confirm transactions. Zyfi plans to deploy capital from investors to solve this problem by simplifying gas options across protocols and solutions.

Zyfi’s account abstraction thesis

The zkSync-powered layer creates a generalized response to the gas conundrum by allowing users to pay for gas with Ethereum (ETH) or any ERC-20 token. Zyfi achieves this by leveraging native account abstraction.

Ethereum co-founder Vitalik Buterin touted account abstraction as the next step to encourage adoption and seamlessly onboard more Web3 users.

Standard wallet addresses, also known as Externally Owned Accounts (EOAs), have limited functionality. As Buterin and other developers explain, account abstraction removes this limitation and enables EOAs to function like smart contracts.

Unlocked features mean users have more flexibility and can do more with their wallets, such as customizing gay payments, spending limits and social healing.

Zyfi has already deployed this technology for nearly one million transactions and more than 110,000 users on zkSync, according to the Dune Analytics dashboard. Zyfi founder Gauthier Vila said the investments will help ensure “developers can focus on improving their products” for end users.

Firms such as Everstake Capital, Tenzor Capital, Apvc.capital, Criterionvc, NxGen, Majinx Capital, v3ntures and Momentum8 participated in the private fundraiser.

Zyfi successfully raised $2 million in private financing.

Today is a big milestone for Zyfi 😁

This investment marks a significant advance in our journey to transform the on-chain experience through native account abstraction for all wallets. pic.twitter.com/qsQRvAKdFd

— Zyfi (@Zyfi_org) June 10, 2024