Trilogy of AA Products Reflections on AA Applications

In the previous article, we talked about the main technical features of AA and gave a demonstration case of PlayOnboard. (Click for details: “AA Trilogy: AA Technical Introduction”)

Here, we list some advantages of AA products:

1. New users can enter Web3 without any sense of discomfort and can use various account recovery mechanisms.

2. LianGuaiymaster has a custom payment mechanism that can be paid with no gas or specific tokens.

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3. Bundler can aggregate and batch transactions, which has lower gas fees in high-frequency scenarios like Gamefi or Socialfi.

4. Bundler can also initiate transactions through payment and timing in specific scenarios.

5. Account contracts have customization, customizable verification and security mechanisms, or record information.

6. AccountFactory can trigger events when accounts are generated, such as including NFTs.

In this article, we will further explore some imaginative applications of AA, which are not simply a replication of the existing EOA, but go beyond EOAs and leverage the advantages of AA.

Both L2 and AA are laying the foundation for large-scale adoption of Web3, enabling Web3 to move from finance-oriented applications to a wider range of applications, and providing Web3 with a better user experience.

1. AA x Games

AA naturally aligns with Gamefi or fully on-chain games, which are high-frequency applications. Having AA is like giving wings to these types of applications.

Currently, most Web3 games tend to be 2Earn or gambling-oriented, lacking truly fun 3A-level applications. User surveys have shown that Crypto users are also high-quality gamers. The low entry barrier provided by AA makes this possibility a reality. However, the learning curve for developers to integrate AA is still high. When the infrastructure greatly reduces the entry barrier, game developers can focus on game mechanics and economic models. This will make it more likely for these games to attract a large number of new users.

Games can attract users seamlessly, allowing them to experience happiness in the game or have a better gaming experience. Wallet assets are just additional value, and joining an AA wallet will provide better positive feedback, transforming games from Play2Earn to Play4Fun. Users can experience spiritual pleasure while earning on-chain assets and seamlessly sharing their asset portfolios with other on-chain applications. When user behavior accumulates enough value support, users can be guided to activate and set up account recovery. This allows them to purchase items or exchange Web3 products using their personal wallets. 2Earn should not be the only form of on-chain games. Through well-designed economic models, it is possible to reduce the behavior of farming accounts for rewards.

AA also aligns with the current trend of fully on-chain games. Using on-chain games’ characters, items, equipment, and levels requires a lot of on-chain interaction. The batch transaction interface of AA can bundle transactions in a timely manner, reducing the gas fees used in games and enabling lower-cost recording of user data. It can even subsidize gasless transactions.

Currently, Web3 games are more like web-based mini-games, and mobile applications like StepN themselves are wallets. I understand that future wallet infrastructure will be more diverse in terms of client applications, and can integrate with mobile AR devices, among other possibilities. Mobile games will come with wallets, and excellent wallet experiences can also assist games in achieving better breakthroughs. This approach is more applicable to mobile devices, VR, and other wearable devices, allowing Web3 to be present anywhere. This type of in-dApp wallet does not rely on web wallet plugins. Similar to WalletConnect, it will pop up a wallet connection application, which will also take a few seconds. Currently, mobile usage scenarios are more extensive and lacking, while the duration of mobile usage has surpassed that of PCs. Excellent product experiences or mobile applications can easily attract a large number of users.

First, we solved the user experience on the client side and then the interoperability of the wallet. Just like the concept proposed by Loot, you can use it in multiple places after purchasing it once. The game can retrieve some asset data from previous games, such as character levels and purchased items, through a unified recovery interface. As long as the account is connected, it can be migrated to the next game. At the same time, users activated by the game can be imported into existing wallet applications, enabling them to connect and use existing wallet functions, achieving true interoperability of AA wallets.

2. AA x NFTs/SBTs

NFT brings more possibilities to Web3. NFT has many applications, such as being a circle for character PFP, a pass card for LianGuaiss, or proof of project rights. Now that we have AA contract wallets, what else can we do besides creating new NFT platforms based on AA contract wallets?

Previously, an externally owned account (EOA) had no space for data storage, while a contract could record anything or implement any functionality. Contract wallets can also be used as NFT card packs, as is the case with ERC6551. So I imagine that contract wallets have more possibilities for on-chain combinations. Customization of AA wallets and the existence of multiple standards are major trends, and modularity and wallet reuse will become even more important.

AA DID & SocialFi

When generating AA contract wallets, external NFTs or built-in NFT functionality can be added to the wallets through the AA factory contract, and contract wallets can come preloaded with identity information.

If there will be a large number of AA accounts generated, the previously contemplated AANS domain names can be used. For newly generated AA accounts, a user-readable .aa domain name can be attached to them. This domain name can be recorded in the generated AA factory contract, and users can also register domain names through the AA factory contract. Similar to ENS, the domain names can be renewed or transferred, and domain name operations can be resolved on-chain.

In addition, a User Profile interface can be defined within AA accounts to store personal information such as avatars, names, and user tags directly in the AA accounts, effectively making the wallet a DID or SBT. As long as an AA account is generated, personal information can be read, and the account can join social relationships and biometric verification, making the AA account a personal information repository.

AA NFT Promotion and Fan Economy

Since NFTs/SBTs can be attached to AA accounts when they are generated, they can actually record information on a higher level, allowing users to seamlessly enter. This creates new forms of NFT promotion and account-based social relationships. By attaching endorsements or recommendations from merchants or influencers to AA accounts when they are generated, certain security checks or benefits can be enjoyed when users call AA accounts, making viral propagation easier.

AA x DeFis

In my personal opinion, AA accounts are not very compatible with DeFi, as AA is more suitable for application layer products rather than financial products.

Firstly, the narrative of DeFi is strongly related to EOAs, and the professional product threshold is very high. Most existing users are there to earn profits. Secondly, in terms of implementation, the complexity of DeFi contracts and the potential for world state interference through inter-contract calls made by AA accounts can easily lead to contract errors.

Looking at DefiSummer and NftSummer, there will be obvious breaking effects. Unless it is profitable, the traditional Web3 circle is unlikely to migrate to the AA ecosystem, and only old funds are being transferred, which is just moving assets from one hand to the other. AA needs to break the circle and attract newcomers, and it needs a different narrative and scale effect from traditional Defi.

However, there are some features that can lower the barrier to entry for Defi and provide opportunities for Defi to potentially gain a larger market than exchanges.

More Convenient Loan / Stablecoin / Dex

For the traditional Defi three musketeers, AA can be used as a new channel for Defi to acquire new users.

For lending products, through RWA external asset proof, gas-free transactions can be conducted, reducing the difficulty for ordinary users or large asset scenarios to obtain off-chain funds. By modifying the Bundler during a specific time period, delegation can be used for lending or repayment operations, better avoiding on-chain liquidation.

For stablecoins, using Onramp can better determine pricing and exchange rates. By obtaining use cases through LianGuaiymaster, more compliant assets such as US bonds and US stocks can be attracted, increasing liquidity in traditional finance. By generating wallets through proxy payment and using zk or off-chain proofs, AA anonymous wallets can be obtained.

The threshold for decentralized exchanges is relatively high. Through proxy payment transactions, users can enter without gas fees, and project tokens can pay for on-chain gas. The user experience can be more efficient than centralized exchanges and have a personal sovereign AA wallet. The AA account can have an embedded exchange portfolio interface, and anonymous accounts can be used to perform on-chain swaps.

Earnings Aggregator / Strategy Platform

The AA contract wallet can also serve as an earnings aggregator wallet, automatically collecting profits from earnings aggregation platforms and reinvesting them through scheduled tasks. The Bundler can be equipped with strategy tools and can also monitor on-chain oracle triggers for strategy trading.

Security Vault

Safe has proven that, under the premise of contract verification security, large funds need to be diversified and managed using contract wallets.

The AA contract is programmable and can separate large fund cold wallet vaults and hot wallets. The AA account can have custom security strategies, such as setting operators, operator permissions, daily limits for members, using multisig, 2FA strategy transfers, and other security strategies. After the AA account is modularized, its security behavior can be customized by integrating security modules.

AA x RWA

The address of the AA account can be fixed in advance, allowing new users to enter Web3 seamlessly. Therefore, it can achieve more than what EOA can do, including on-chain integration, securitization, and better liquidity for traditional RWA assets. However, asset compliance is still a major factor.

AA Marketing

I have worked on the creative brand marketing planning for 1to3.io Web3 gift culture, and I have assumed a scenario: the platform can be paid with cryptocurrency or LianGuaiyLianGuail. We will generate a new contract wallet address for shopping users, and the wallet can be generated based on the hash of the referral code. When receiving the goods, the wallet can be installed through the App and activated, and then bind the information.

This way, offline users can have the first contract wallet at zero cost, and merchants can also pay on-chain transactions for users through other external income. The wallet has the permissions and benefits provided by the platform merchants, which can provide another way of thinking for creative marketing for merchants.

Scheduled Tasks

When a company or DAO issues a Bounty, it needs to trigger scheduled tasks based on certain conditions. For example, set a certain time period every month, and initiate scheduled payments through delegation after that time period. This can be applied to scenarios such as payroll, advertising CPM, external trigger conditions, or bringing Crypto subscriptions similar to Apple subscriptions onto the chain, and contract combinations can achieve programmable subscriptions.

Batch transactions are also an advantage of AA. For example, tasks that are airdropped daily can be initiated in batches at zero o’clock by calculating conditions.

Inheritance of Assets

Sometimes when we don’t use a wallet for a long time, the assets may be forgotten. AA wallet programmatically provides an inheritance module, and signs or proves it in advance, or delegates the bundler to initiate it at a scheduled time. After a specific time has passed, the assets will be collected to another wallet address. This is also a derivative application of the timed task of an AA account, using AA can well safeguard and safely clean up assets.

Summary

In summary, the AA ecological application still has a lot of room for imagination, and customized AA accounts will inevitably become a major trend.

The AA ecosystem can derive more products and new forms of contract wallets. Registered EOA wallet users are still a small circle, and AA accounts may be another way to break through the circle.

But as mentioned in the first product article, the only barrier for Web3 applications is users, we need to target their needs, not sophisticated technology or cool UI. Of course, before excellent applications appear, these should not be shortcomings. The user experience of EOA wallets has already become a barrier and a shortcoming that needs to be improved.

On the basis of constantly improving the standard consensus and ecological interoperability, gaining the most users is the advantage of AA, and retaining users can unleash more value. So in the next part, we will imagine how to enter the largest user scenarios and use AA’s advantages to import users through past Web2 and social experiences (personal opinion, perhaps what I consider the most efficient factor).

This article is intended to spark ideas. Interested friends can also contact the author to build new scenarios for the AA ecosystem. Every idea can do more.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!