EIP-7702 Account Abstraction Demo with Privy & Pimlico

A Next.js demo application showcasing EIP-7702 authorization with Privy embedded wallets and Permissionless SDK for gasless transactions. This app enables users to upgrade their EOA (Externally Owned Account) to behave like a smart account using EIP-7702, allowing them to send sponsored transactions through Pimlico bundler/paymaster services.

🚀 Features

EIP-7702 Account Abstraction: Transform EOAs into smart accounts temporarily
Privy Integration: Secure embedded wallet management and authentication
Gasless Transactions: Sponsored transactions via Pimlico paymaster
ERC-20 Gas Payments: Pay transaction fees using USDC tokens
Secure API Proxy: Hide Pimlico API keys from frontend exposure
Cloud Deployment: Standalone proxy server for production use

🏗️ Architecture

Frontend (Next.js) → Proxy Server → Pimlico API
                  ↓
              Sepolia Testnet

Key Components

Frontend: React components with Privy wallet integration
Proxy Layer: Secure API key management and request forwarding
Smart Account: EIP-7702 enabled account abstraction
Paymaster: Pimlico service for transaction sponsorship

📦 Installation

# Install dependencies
pnpm install

# Copy environment variables
cp .env.example .env.local

⚙️ Environment Configuration

Required Environment Variables

# Privy Configuration
NEXT_PUBLIC_PRIVY_APP_ID=your_privy_app_id

# Pimlico Configuration (Server-side only)
PIMLICO_API_KEY=pim_your_actual_api_key

# Network Configuration
NEXT_PUBLIC_SEPOLIA_RPC_URL=https://1rpc.io/sepolia

# Optional: Sponsorship Policy
NEXT_PUBLIC_SPONSORSHIP_POLICY_ID=sp_your_policy_id

# Proxy Configuration
NEXT_PUBLIC_PIMLICO_PROXY_URL=http://localhost:3000/api/pimlico-proxy
# For production: http://your-server:8081/pimlico-proxy

🔧 Development

# Start development server
pnpm dev

# Code formatting
pnpm format

# Linting
pnpm lint

# Build for production
pnpm build

🌐 Deployment Options

Option 1: Next.js API Route (Development)

The built-in API route at /api/pimlico-proxy.ts provides a simple proxy for development.

Option 2: Standalone Proxy Server (Production)

For production deployments, use the independent Express server:

cd src/proxy

# Install dependencies
npm install

# Start server
npm start

# Or with PM2 for production
npm run pm2

Cloud Server Deployment

# On your cloud server
git clone [your-repo]
cd permissionless-privy-7702/src/proxy

# Install dependencies
npm ci --only=production

# Set environment variables
echo "PIMLICO_API_KEY=your_key" > .env
echo "PROXY_PORT=8081" >> .env
echo "ALLOWED_ORIGINS=https://yourdomain.com" >> .env

# Start with PM2
npm run pm2

Docker Deployment

cd src/proxy
docker build -t pimlico-proxy .
docker run -p 8081:8080 -e PIMLICO_API_KEY=your_key pimlico-proxy

🔐 Security Features

API Key Protection

✅ API keys stored server-side only
✅ Frontend never exposes sensitive credentials
✅ Transparent proxy maintains SDK compatibility

Request Validation

✅ CORS protection with configurable origins
✅ Request size limiting
✅ Error handling and logging

Production Hardening

✅ Rate limiting (recommended)
✅ Request filtering
✅ Health check endpoints

💡 Usage Examples

Basic 7702 Transaction

// The UserOperation component handles:
// 1. Privy authentication
// 2. Smart account creation
// 3. EIP-7702 authorization signing
// 4. Transaction submission

Gasless Transaction

// Send sponsored transaction
await smartAccountClient.sendTransaction({
  calls: [{
    to: zeroAddress,
    data: "0x",
    value: BigInt(0)
  }],
  factory: '0x7702',
  factoryData: '0x',
  paymasterContext: {
    sponsorshipPolicyId: process.env.NEXT_PUBLIC_SPONSORSHIP_POLICY_ID
  },
  authorization
})

ERC-20 Gas Payment

// Pay gas with USDC tokens
await smartAccountClient.sendTransaction({
  calls: [
    {
      to: USDC_TOKEN,
      abi: parseAbi(["function approve(address,uint256)"]),
      functionName: "approve",
      args: [paymaster, maxUint256]
    },
    {
      to: targetContract,
      data: "0x1234"
    }
  ],
  paymasterContext: {
    token: USDC_TOKEN
  },
  authorization
})

📊 Transaction Flow

Authentication: User logs in via Privy embedded wallet
Account Setup: Create smart account client with EIP-7702 support
Authorization: Sign EIP-7702 authorization to upgrade EOA
Transaction: Submit UserOperation with authorization
Execution: Pimlico processes and sponsors the transaction

🔍 Monitoring & Debugging

Development Logs

# View detailed request logs
pnpm dev

# Check proxy server logs
cd src/proxy && npm run dev

Production Logs

# PM2 logs
pm2 logs pimlico-proxy

# Docker logs
docker logs [container-id]

# Health check
curl http://your-server:8081/health

🚨 Troubleshooting

Common Issues

"No wallet found" Error

# Solution: Ensure Privy embedded wallet is properly initialized
# Check: embeddedWallet?.address is available

CORS Errors

# Solution: Configure ALLOWED_ORIGINS in proxy server
ALLOWED_ORIGINS=https://yourdomain.com,http://localhost:3000

Transaction Failures

# Check: Sufficient USDC balance for gas payments
# Check: Valid EIP-7702 authorization signature
# Check: Correct nonce (use EOA nonce, not smart account nonce)

Proxy Connection Issues

# Verify: NEXT_PUBLIC_PIMLICO_PROXY_URL points to running server
# Check: Firewall settings allow traffic on proxy port

🧪 Testing

Manual Testing

Connect wallet via Privy
Send regular 7702 transaction
Send gasless test transaction
Send USDC gas payment transaction
Verify transactions on Sepolia Etherscan

Network Requirements

Testnet: Sepolia
Test ETH: Required for account setup
Test USDC: Required for ERC-20 gas payments
Faucets: Sepolia Faucet

📚 Technical Stack

Framework: Next.js 15 with React 19
Authentication: Privy embedded wallets
Account Abstraction: Permissionless SDK + EIP-7702
Blockchain: Ethereum Sepolia testnet
Bundler/Paymaster: Pimlico services
Styling: Tailwind CSS + shadcn/ui
Proxy: Express.js (standalone) / Next.js API routes

🔗 Useful Links

Official Documentation

EIP-7702 Specification - Official EIP-7702 standard specification
Privy Documentation - Complete Privy integration guide
Permissionless SDK - Account abstraction SDK documentation
Pimlico Documentation - Bundler and paymaster service docs
Sepolia Testnet - Ethereum testnet explorer

Reference Implementation & Tutorials

🛠️ Permissionless + Privy + 7702 Example - Official starter repository and complete implementation reference
📝 Privy EIP-7702 Authorization Guide - How to sign 7702 authorizations with Privy React hooks
🚀 Privy EIP-7702 Recipe - Step-by-step integration recipe for Privy + Pimlico + EIP-7702
💰 USDC Gas Payment Tutorial - Using ERC-20 tokens for transaction gas fees

🤝 Contributing

Fork the repository
Create feature branch (git checkout -b feature/amazing-feature)
Commit changes (git commit -m 'Add amazing feature')
Push to branch (git push origin feature/amazing-feature)
Open Pull Request

📄 License

This project is licensed under the MIT License - see the LICENSE file for details.

⚠️ Disclaimer

This is a demo application for educational purposes. Do not use in production without proper security audits and testing. Always verify transactions and smart contract interactions before deployment.

Name		Name	Last commit message	Last commit date
Latest commit History 33 Commits
pimlico-proxy-server		pimlico-proxy-server
public		public
src		src
.gitignore		.gitignore
CLAUDE.local.md		CLAUDE.local.md
CLAUDE.md		CLAUDE.md
GUIDE.md		GUIDE.md
README.md		README.md
biome.json		biome.json
components.json		components.json
next-env.d.ts		next-env.d.ts
next.config.js		next.config.js
package-lock.json		package-lock.json
package.json		package.json
pnpm-lock.yaml		pnpm-lock.yaml
postcss.config.js		postcss.config.js
tailwind.config.js		tailwind.config.js
test-7702.ts		test-7702.ts
tsconfig.json		tsconfig.json

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