Fusaka Goes Live, EIL vs OIF Debate, Rewardy Launches ERC-7702 Wallet, 7702 Unlocks Recovering Assets

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We are welcoming you to our weekly digest! Here, we discuss the latest trends and advancements in account abstraction, chain abstraction and everything related, as well as bring some insights from Etherspot’s kitchen.

The latest news we'll cover:

Fusaka Goes Live: Ethereum Cuts Storage Costs and Speeds Up L2 Settlement
Rewardy Launches 7702-based Wallet
Ethereum Interop Debate: EIL and OIF Are Not Competitors
How EIP-7702 Helps Users Recover Assets From Compromised Wallets

Please fasten your belts!

Fusaka Goes Live: Ethereum Cuts Storage Costs and Speeds Up L2 Settlement

Ethereum has activated the long-awaited Fusaka upgrade, marking a major step toward reducing the operational burden on node operators and improving the way rollups settle to Layer 1. The update introduces multiple data-efficiency optimizations that aim to make Ethereum more scalable, less expensive to run, and better suited for a multi-rollup ecosystem.

Fusaka’s core focus is cutting the cost of node storage and computation. The upgrade reduces the amount of historical data that clients must retain and enables more efficient pruning, lowering hardware requirements and making it easier for individuals and smaller operators to run full nodes. These changes also improve sync times and reduce long-term database growth, a key priority as Ethereum’s chain size continues to expand.

The update also introduces improvements for rollup settlement, with redesigned data-availability mechanics enabling faster confirmation and more predictable throughput. These changes come at a time when rollups rely heavily on Ethereum for security and settlement, and are expected to reduce delays while tightening finality guarantees. Researchers note that Fusaka aligns with long-term roadmap goals to make Ethereum a lighter protocol while strengthening rollup throughput.

Another goal of the upgrade is to strengthen the network so it can support future interoperability efforts and emerging protocol standards. By lowering node requirements and streamlining data processing, Fusaka sets the foundation for future stages like PeerDAS and expanded data sampling, features intended to help Ethereum scale without sacrificing decentralization.

Rewardy Launches 7702-based Wallet

Rewardy announced the rollout of its new EIP-7702-based smart wallet, enabling one-click UX while preserving existing wallet addresses. The company said the upgrade brings smart-account-like capabilities to traditional EOAs, including batching, sponsored transactions, and simplified onboarding. According to Rewardy, the wallet serves more than 560,000 users across Korea and Japan, positioning it as one of the largest production deployments of 7702-driven UX enhancements.

In its announcement, Rewardy emphasized that the new architecture integrates directly with the Ethereum Foundation’s free, censorship-resistant 7702 bundler infrastructure powered by Etherspot, allowing wallets to submit 7702 user operations without relying on centralized relayers or proprietary services. This design aligns with the Foundation’s push for open, trustless infrastructure for EOAs transitioning into semi-smart accounts.

During Devconnect, Rewardy presented the upgrade at the Account Abstraction Community Hub, demonstrating how EIP-7702, ERC-4337, and the upcoming Ethereum Interoperability Layer (EIL) combine to streamline cross-chain UX.

The Rewardy team publicly thanked EF contributors — including Tom Teman, Marisa, and Yoav Weiss — noting that the Hub created an environment “where real builders can exchange ideas and push AA adoption forward.” Rewardy also reiterated its goal of becoming “the pioneer and real-world testbed for EIL in the Korean market.”

Ethereum Interop Debate: EIL and OIF Are Not Competitors

In early December, a lively discussion unfolded inside a large Telegram group of Ethereum L2 builders, researchers, and infra teams. The conversation zeroed in on a recurring question: how should cross-chain actions actually be executed across Ethereum’s increasingly multi-rollup ecosystem?

Although the thread included disagreements, the overarching takeaway was clear: Ethereum Interop Layer (EIL) and intent-based frameworks (OIF, Across, CoWSwap, MEE) are not opposing visions, but complementary pieces of the same interoperability stack.

At the center of the discussion was a simple question: who performs the actual execution of a cross-chain action? EIL’s model emphasizes direct, user-signed execution end-to-end, while intent and orchestrator systems rely on solvers to fulfill a user’s stated goal. But participants repeatedly stressed that these approaches solve different parts of the problem. EIL provides a trust-minimized execution path — users sign one time, and the chain executes exactly what they authorized. OIF-style systems excel at discovery, routing, and liquidity matching. Both can sit comfortably side by side.

Multiple ecosystem contributors reinforced that framing. Ethereum Foundation researchers explained that EIL’s purpose is to unify execution semantics across L2s without introducing custody or extra trust boundaries. Builders from Across and CoWSwap clarified that modern solver systems are also non-custodial and permissionless, making them compatible with EIL rather than conflicting with it. The Biconomy MEE team highlighted that orchestrators can use EIL underneath, giving users a fallback path where execution can revert to self-custody if needed.

Despite moments of tension, participants aligned on several key points. Everyone agreed Ethereum must converge toward a one-signature multichain UX, eliminate centralized relayer dependencies, and maintain a self-execution fallback for users.

They also agreed that no single system, EIL, intent engines, bridges, or orchestrators, can solve interop alone. True end-to-end interoperability requires shared standards, clear terminology, and layered collaboration rather than competing narratives.

Ultimately, the debate showed a maturing ecosystem: EIL and OIF aren’t rivals, they’re two layers of the same future, enabling wallets and dApps to mix trustless execution with smart discovery and seamless routing.

How EIP-7702 Helps Users Recover Assets From Compromised Wallets

Bankless explains how EIP-7702 offers a practical rescue path for users who still hold valuable assets, like airdrops, NFTs, or allowlist spots, in Ethereum wallets whose private keys have been compromised. Normally, sweeper bots immediately drain any gas sent to such wallets, making it nearly impossible to perform even a single transaction. The article outlines how 7702 introduces a temporary smart-account execution mode that can bypass this situation.

The piece describes how 7702 lets a compromised EOA behave like a smart wallet for one transaction. Instead of sending gas directly, a separate sponsor wallet pays the fees, while the compromised wallet signs a single authorization that delegates execution to a batch contract. This allows the batch contract to perform actions such as claiming an NFT or airdrop and transferring it to a safe address before the attacker’s sweeper bot can intervene.

Bankless highlights Antidrain, a client-side recovery tool built by Zun, as a real-world example. The tool generates 7702 delegations and batch transactions in the user’s browser and has been used to save assets like NFT allowlist mints. One user successfully rescued a Fwog mint, valued around $700, by issuing a one-time 7702-based batch transaction that bypassed the sweeper.

This method is only appropriate for wallets already compromised, since providing a private key to any website is otherwise unsafe. Still, Bankless notes that 7702 enables something previously impossible, rescuing stuck tokens without exposing the wallet to further loss. It offers users a final chance to salvage assets that would otherwise be permanently inaccessible.

Bankless concludes that while 7702 cannot remove attackers from a wallet, it introduces a meaningful defensive capability: a last-resort escape hatch for assets threatened by sweeper bots. It demonstrates how 7702 adds real utility and user protection beyond UX upgrades alone.

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