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:
- Etherspot Receives Ethereum Foundation Grant to Build EIP-7702 Infra
- Chainlink Launches a Strategic On-Chain LINK Reserve
- Rhinestone Co-Founder on Why Smart Accounts Flopped
- AA Afterhours Explores UserOp Debugging and Interop UX
- LI.FI Argues Resource Locks are Key to Intent Growth
Please fasten your belts!
Etherspot Receives Ethereum Foundation Grant to Build EIP-7702 Infra
Etherspot has received a grant from the Ethereum Foundation to develop free, censorship-resistant infrastructure supporting EIP-7702, a key proposal included in the recent Pectra upgrade.
EIP-7702 allows externally owned accounts (EOAs) to temporarily function as smart contract wallets, delivering many of the benefits of ERC-4337-style Account Abstraction without requiring users to migrate from their existing EOAs.
The initiative addresses a critical challenge for adoption: the lack of public infrastructure for submitting UserOps to a mempool, which could otherwise create centralization and censorship risks. Etherspot’s solution will launch publicly accessible UserOp mempool nodes, free for any EVM-based project or developer within reasonable usage. Initial deployments will target Ethereum, Optimism, and Arbitrum, with World Chain, Base, Unichain, and Linea support planned.
All bundlers in the network will operate nodes with native tracer support for fast execution, and integration will require minimal effort thanks to compatibility with common web3 libraries. Etherspot will provide 24/7 service support to ensure developer confidence. The infrastructure also enhances redundancy, as UserOps from ERC-4337 and EIP-7702 will be shared across bundlers via the p2p mempool.
This grant reinforces Ethereum’s core principles of decentralization, censorship resistance, and openness. Documentation will be released in the coming weeks, enabling developers to adopt the infrastructure quickly. Etherspot’s work aims to accelerate EIP-7702’s role in making Account Abstraction more accessible to mainstream users.
Are you building with EIP-7702? Forget about your infrastructure costs, get in touch with us at info@etherspot.io to make it free!
Chainlink Launches a Strategic On-Chain LINK Reserve
Chainlink has introduced the Chainlink Reserve, an on-chain pool of LINK tokens funded through off-chain and on-chain revenue streams via its Payment Abstraction infrastructure.
The reserve has already surpassed $1 million worth of LINK, automatically acquired through the conversion of protocol revenues into LINK.
The initiative is designed to operate as a strategic growth fund for the Chainlink Network to sustain its ecosystem over the long term. Chainlink stated that no withdrawals are expected for years, underscoring its role as a future-focused reserve rather than an operational liquidity pool.
The Payment Abstraction framework enables enterprise and dApp users to pay for Chainlink services in their preferred tokens, which are then seamlessly converted into LINK to fund the reserve. This model ensures consistent inflows without requiring manual conversions from service providers.
For transparency, Chainlink has released a public analytics dashboard showing the reserve’s balance and transactions, along with the Etherscan contract link for direct on-chain verification.
The reserve’s growth is expected to track with the expansion of Chainlink’s network usage, particularly as its cross-chain interoperability protocol (CCIP) and data services see greater adoption.
Chainlink emphasized that this mechanism aligns network success with LINK’s long-term sustainability, creating a direct economic loop between usage and token accumulation.
Rhinestone Co-Founder on Why Smart Accounts Flopped
In Arjun Chand’s recent interview, Rhinestone co-founder Kurt Larsen broke down why smart accounts have so far fallen short of expectations, despite being hailed as a game-changer for crypto wallet UX.
According to Larsen, fragmentation across implementations, the absence of widely-adopted standards, and developer hesitancy have slowed adoption. This has kept smart accounts from delivering their promise of frictionless, abstracted Web3 interactions.
Larsen noted that the current wallet landscape still forces users into awkward multi-step processes for bridging, gas management, and moving between chains, problems smart accounts were meant to solve. Without cohesive infrastructure and clear incentives for developers, the ecosystem has remained fragmented.
Despite these challenges, Larsen is bullish on the technology’s future. He highlighted that smart accounts can abstract away chain boundaries and gas mechanics, enabling instant, seamless spending across networks without manual setup. This, he argued, would change user behavior entirely — favoring spontaneous, frequent transactions over large, deliberate fund transfers.
He also cautioned against chasing hype cycles, emphasizing that industry narratives often repackage themselves under new labels. The real value, Larsen said, lies in identifying durable fundamentals and aligning early with them, positioning smart accounts as a long-term UX transformation for Web3.
AA Afterhours Explores UserOp Debugging and Interop UX
ERC-4337’s latest AA Afterhours episode spotlights a dedicated on-chain explorer built for Account Abstraction that allows developers to track user operations (UserOps) across multiple chains in one place.
Unlike standard explorers, it breaks down bundled transactions to show individual user actions, making it easier to debug, analyze, and improve onboarding flows. The platform also integrates social logins like Google, Passkey, and Twitter, enabling smoother smart account adoption.
Gautam Sabhahit from JiffyScan emphasized that many dApp developers find AA complex due to multi-step onboarding, fragmented tooling, and the challenge of bridging user assets from different chains.
Upcoming improvements, such as EIP-7702 and chain abstraction, are expected to address these pain points by allowing users to transact on new chains without native gas tokens and by enabling a single account to seamlessly interact with multiple applications.
The explorer aims to support chain abstraction development by linking related UserOps across chains, showing exactly where processes succeed or fail, and decoding calldata for more efficient debugging. Partnerships with chains, like Open Campus, are helping spread AA adoption by embedding the explorer into documentation and developer resources.
Looking ahead, the vision is a unified account model where users can spend assets across chains without manual bridging or token management — unlocking a truly seamless Web3 UX.
LI.FI Argues Resource Locks are Key to Intent Growth
In a recent article, LI.FI argues that the rise of intent-based architecture is transforming interoperability by shifting from a “bridging” mindset to a true “swap-first” UX — where solvers abstract cross-chain complexity to enable seamless operations.
The article explains that resource locks, temporary holds on user assets, are streamlining intent execution by guaranteeing availability for solvers. Users lock funds upfront, empowering solvers to fulfill swaps faster and more reliably, effectively moving operations from “fast” to “really fast”.
The piece highlights operational risks solvers face, like market volatility, chain instability, and inventory strain, and how resource locks help mitigate them. Several solutions are spotlighted: Across Prime’s bonded model limits solver exposure, Relay Vaults allow pooled liquidity contributions, Sprinter aids solvers in accessing deep liquidity, Stargate proposes DAO-funded intent execution, and Everclear introduces netting layers for efficient cross-chain capital flow.
A core insight emerges: resource locks represent a meaningful design evolution in intent systems, enhancing solvability and scalability by shifting UX from chain-first to asset-first — marking a critical milestone in interop infrastructure maturity.
Start exploring Account Abstraction with Etherspot!
- Learn more about account abstraction here.
- Head to our docs and read all about Etherspot Modular SDK.
- Skandha — developer-friendly Typescript ERC4337 Bundler.
- Arka — an open-source Paymaster Service for gasless & sponsored transactions.
- Explore our TransactionKit, a React library for fast & simple Web3 development.
- Follow us on X (Twitter) and join our Discord.
❓Is your dApp ready for Account Abstraction? Check it out here: https://eip1271.io/
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