Changing the DeFi Primitive for EVM Chains

By Pillar | Pillar Blog | 23 Jun 2022


We’re proud to announce that Etherspot and LI.FI have made a huge breakthrough in the cross-chain user experience.

Every time users want to explore a dApp, they have to switch the RPC network on MetaMask. This is one of the most annoying things for degens in the cross-chain ecosystem.

For instance, If a user is on a dApp on Fantom and needs to sign a transaction, but their MetaMask wallet network is set to Polygon, they will first have to switch the RPC network to Fantom. However, with Etherespot’s SDK that is powered by LI.FI’s cross-chain any-2-any swap functionality, users can now perform any action on any EVM compatible chain without worrying about changing their RPC network on MetaMask.

Sounds too good to be true? Let’s take a closer look at a use-case of this breakthrough and understand how it works!

Cross-Chain Swapping and Staking on KlimaDAO

With the emergence of the multiple layer-1 and layer-2 blockchain networks, degens began exploring the ecosystem for yields. However, since the cross-chain ecosystem is still in its early stages of development, using a dApp on a chain other than Ethereum came with its hurdles and roadblocks.

For instance, KlimaDAO is a protocol native to the Polygon blockchain, an Ethereum sidechain. As a result, to use the Klima protocol, users must have funds on the Polygon network (and gas) before they can start buying the KLIMA token and stake it to join the green revolution.

However, the onboarding process to the KlimaDAO is cumbersome. For example, let’s take a closer look at the onboarding process for a new user who has wETH on Gnosis Chain but wants to stake into Klima.

  • Leave the Klima Website to begin his cross-chain journey.
  • Swap wETH to USDC on Honeyswap (2 interactions — approve and swap, switch dApp)
  • Bridge USDC to Polygon via Connext (2 interactions — approve and bridge, switch dApp)
  • Switch RPC to Polygon (1 interaction)
  • Swap USDC to Klima on Sushi (2 interactions — approve and swap, switch dApp)
  • Stake Klima to get sKlima (2 interactions — approve and stake, switch dApp)

Thus, a user with funds on Gnosis Chain will have to visit 3/4 dApps and have 9 interactions to stake into Klima on Polygon. Even if we assume the user knows exactly what he needs to do to start staking on Klima if they have funds on Gnosis Chain, the process is very lengthy, and a user can make mistakes at any step. This is a very complicated user onboarding experience.

The Breakthrough

With Etherespot’s SDK, powered by LI.FI’s cross-chain any-2-any swap functionality, we’ve condensed these 9 interactions into just 4. Moreover, all this is now available inside a single user interface to use wETH on Gnosis Chain for staking into Klima.

Here’s all a user needs to do now:

  • Approve the token if they haven’t yet (1 interaction)
  • Sign a transaction on Gnosis Chain to bridge to Polygon via LI.FI (1 interaction)
  • Sign a transaction on Polygon to swap and stake into Klima (2 back-to-back interactions/signatures).

If a user’s token is pre-approved or if they’re using a native token, it’ll be just 3 interactions.

The entire process took only 3:23 minutes. More importantly, everything happened on a single interface, thus abstracting all the complexities for the users. As a result, this drastically improves the user onboarding experience on Klima.

How Does the Tech Work?

Etherspot is an SDK that allows transaction batching inside a chain by creating a smart-contract-based wallet for the user in that chain. But Etherspot’s killer feature is being able to sign cross-chain transactions on any chain from any chain.

LI.FI is a cross-chain bridge and DEX aggregator that facilitates any-2-any swaps. Etherspot can batch transactions inside a chain, but LI.FI provides the ability to swap inside any chain with the DEXs and connects any 2 chains with its bridges.

This, in the MVP built for staking Klima,

  • Etherspot creates a smart contract wallet for the user on Polygon
  • The User sends their funds to this smart contract wallet
  • The User signs a message to swap to USDC and bridge using LI.FI
  • After bridging, the user again signs a message which swaps to Klima and stakes in a single batched transaction.

Changing the DeFi Primitive for EVM Chains

With LI.FI and Etherspot’s joint SDK, it would be possible to batch cross-chain transactions and thus give the user a feeling of just using a single blockchain. This creates a layer on top of the Ethereum + EVM ecosystem, which abstracts away all the complexities of different blockchains.

Most multi-chain dApps can use Etherspot+LI.FI to go cross-chain without fully going cross-chain. With this, dApps can expand their user base across the EVM ecosystem.

Some use cases of the Etherspot + LI.FI SDK includes:

  • Yield aggregators can build cross-chain strategies
  • NFT Marketplaces can go cross-chain
  • Any protocol with pools/vaults can attract liquidity from any chain seamlessly.

This is as much of an upgrade to the EVM chains as IBC was to the Cosmos SDK chains.

“You can take any EVM chain and stake Klima from it. It’s mind-blowing. I went from Ethereum all the way to stake Klima. It’s super cool. It’s one of those sophisticated pieces. This allows us to go cross-chain without having to go cross-chain. It allows us to remain on Polygon and people come to us for things. So anything EVM based can interact with this.”

Archimedes, Co-founder of KlimaDAO.

If you wish to talk about our breakthrough further or have questions about building with our stack, you can join

LI.FI’s Discord or Etherspot’s Discord (Same team as Pillar wallet).

You can also hit us up on Twitter @lifiprotocol or @etherspot.

Get Started with Etherspot Today:

To learn more about us,

or try out our new tool NOW at https://transferto.xyz/showcase/etherspot-klima

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Pillar
Pillar

A community-run, multichain & non-custodial DeFi wallet with one address, low-to-no gas fees and cross-chain super powers!


Pillar Blog
Pillar Blog

Pillar Wallet is a self-custodial smart contract wallet enabling low fees, cross-chain swaps & stablecoin gas payments, all in a unified multichain DeFi experience. Powered by Etherspot - Account Abstraction SDK for frictionless Web3

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