When it comes to the adoption of DeFi, the requirement to hold ETH in order to send Dai or interact with applications creates a massive barrier-to-entry for new users. Luckily with the introduction of meta transactions, there’s now a way to abstract this barrier away from the end-user to create a seamless experience.
Now, thanks to the recent upgrade to Multi-Collateral Dai, the Mosendo team announced Gasless: A non-custodial wallet for Dai transactions leveraging native meta transactions.
With the wallet, transaction fees are paid in Dai rather than Ether through the introduction of one of the new features with MCD. The upgrade allows for cheaper, simpler, and more secure native meta transactions for Dai at large.
In the past, we’ve seen meta transactions implemented in smart contract wallets like Argent, where fees are completely subsidized by the wallet provider. While smart contracts offer a significant improvement in security and usability than traditional wallets, they are subject to some inefficiencies and drawbacks. As a result, Gasless has streamlined some of the inefficiencies associated with meta transactions and smart contract wallets.
Streamlined Contract Deployment
Smart contract wallets rely on deploying a new smart contract for every new user. This requirement can lead to additional transaction costs and contributes to the storage bloat plaguing Ethereum. With that in mind, while existing smart wallets must continuously deploy new smart contracts, Gasless allows for a single contract to act as a single hub for meta transactions across all users. By doing so, this significantly reduces the transaction costs and other issues currently associated with meta transactions.
With Gasless, users are able to send existing Dai balances without any new wallet migrations. Instead of creating a new wallet, users are able to simply connect their MetaMask wallet and access Dai-based meta transactions directly from there. In addition, Gasless allows for users to easily share access with other contracts while retaining the ability to be upgraded and extended by the user in a single signed transaction.
Once you create a smart wallet, you’re incurring the smart contract risk by trusting that the wallet’s smart contract is audited and secure. If at any point a bug is found, it can become a massive security risk for users as the bugs will be universally applicable to every wallet.
As such, Gasless does not take exclusive ownership of funds but rather the contract is granted an allowance. If the contract ever fails, the allowance is reversible by the user.
The benefits of Multi-Collateral Dai are already beginning to emerge. In the coming months, the DeFi space will continue to explode with innovation as the effects of MCD takes place.
With the introduction of Gasless, the industry is taking a step forward in providing a better, seamless user experience for the next-wave of DeFi adoption. Native meta transactions for Dai creates a more secure, composable, and efficient way to abstract the complexities away from Ether-based transaction fees.
If you’re interested in seeing understanding how Gasless works under the hood, feel free to reference this article by the Mosendo team.
Analyst at Bankless – one of the leading resources for open finance. Lucas is an active contributor to the DeFi ecosystem with appearances in other notable DeFi outlets including The Defiant and Our Network. He has years of experience working with dozens blockchain and token startups where he focused on token economics, marketing, and growth.