Account Abstraction

This feature further enhances Dexponent to meet institutional-grade standards. Presently, account security relies on private keys derived from seed phrases. Possession of the seed phrase grants access to the private key that safeguards an account, enabling control over all its assets. The loss of the private key or seed phrase results in permanent asset loss, as recovery is impossible. Safeguarding these seed phrases presents challenges, leading to frequent phishing scams.

Account abstraction provides a solution by utilizing smart contracts to manage assets and authorize transactions. These contracts can integrate customized security measures, thereby enhancing user safety. While private keys remain essential for account access, the implementation of safety measures streamlines and secures their management.

The objectives of Account Abstraction are as follows:

  1. Adherence to best practices for Crypto Trading

  2. Protection of company funds

  3. Diversification of funds across various strategies with differing expectations

  4. Management of multiple departments and roles

  5. Experimentation with new features by allocating funds for testing (Staking, Perpetual, LSD)

Dexponent accomplishes this through Account abstraction protocols like Safe , its groundbreaking account abstraction framework on Ethereum and the EVM, boasting the most secure smart wallet infrastructure and platform. It ensures top-notch security through multiple private keys (multi-sig) and extensively audited contracts, promoting enhanced security measures.

Security logics that can be built into a smart contract wallet:

Multisig authorization: You can share authorization credentials across multiple trusted people or devices. Then the contract can be configured so that transactions of more than some preset value require authorization from a certain proportion (e.g. 3/5) of the trusted parties. For example, high value transactions might require approval from both a mobile device and a hardware wallet, or signatures from accounts distributed to trusted members.

Account freezing: If a device is lost or compromised the account can be locked from another authorized device, protecting the user's assets.

Account recovery: Currently losing a device or forgetting a password means your assets could be frozen forever. With a smart contract wallet, you can set some pre-approved accounts that can authorize new devices and reset access.

Set transaction limits: Specify daily thresholds for how much value can be transferred from the account in a day/week/month. This means if an attacker does gain access to your account they can't drain everything at once and you have opportunities to freeze and reset access.