Instadapp’s Avocado Smart Contract Wallet to Make DeFi Less Cumbersome

Instadapp’s new wallet, Avocado, will allow gas prices to be paid in USDC

article-image

Source: Shutterstock / Rodica Vasiliev, modified by Blockworks

share

Smart contract wallets are gaining momentum in the cryptocurrency space, and Instadapp is the latest to join the trend with the launch of its new wallet, Avocado.

There are many steps when it comes to interacting with a decentralized application today, often involving high gas prices and complicated processes.

The introduction of smart contract wallets, or account abstraction wallets, simplifies this processes and the costs involved, making decentralized finance (DeFi) more accessible to casual users.

What is account abstraction?

The concept of account abstraction wallets is that every wallet individually is a smart contract. The concept itself is not new and has been in the works for over nine years.

The majority of existing wallets on Ethereum today are externally owned accounts (EOAs). This includes popular wallets such as Metamask and imToken.

To access EOAs, individuals require a private key, which often consists of a combination of random words. Once a private key is lost, the account, and all the funds associated with the account, are also lost forever. 

An alternative to EOAs today is custodial wallets — accounts owned by centralized entities, such as exchanges.

There’s an old adage in crypto: “Not your keys, not your coins.” Following the collapse of FTX, the risks of custodial wallet accounts have become glaringly obvious.

An account abstraction wallets resolves both these issues — they are non-custodial, and yet completely managed by the individual who owns it. This means that the owner of the wallet can choose from an array of security features.

Avocado smart contract wallet explained

Beyond having a built-in account abstraction utility, the Avocado smart contract wallet has some other interesting features.

Loading Tweet..

The wallet is connected to what they are calling the Avocado network, a deterministic smart contract which has its own Remote Procedure Call (RPC) node. This node allows the network to read on-chain data and send transactions to different blockchains.

This means that once a wallet is connected to the Avocado network, the network will automatically create a wallet address that is linked to your external wallet, and any tokens on any supported chain can be sent and received through your network wallet.

Gas fees, instead of being paid by the user in a chain’s native currency, such as ETH, are paid through USDC — which can be added from any chain and paid on any chain. The smart contract handles the conversion in the background, meaning that there is no need to maintain multiple gas balances on different chains in order to execute transactions.

Blockworks research analyst Matt Fiebach notes that, in a nutshell, Instadapp’s latest smart contract wallet will abstract away the cumbersome process of interacting with DeFi.

“Simpler workflows for using decentralized applications will be integral to the industry’s adoption and success and this is a significant step in the right direction,” Fiebach said. “Additionally, the gas scalar could create significant value for $INST if Avacodo achieves integrations and use.”


Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
Tags

Upcoming Events

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (5).png

Research

Outside of stablecoins, the value of tokenized assets sits below $20B, dominated by the following asset classes: private credit, US Treasuries, commodities, institutional alternative funds, stocks, non-US government debt, and corporate bonds. In the coming months, we see the greatest opportunities in the tokenization of illiquid markets, particularly private equity. However, the successful integration of offchain assets into blockchain ecosystems relies heavily on clear and consistent regulatory frameworks, with purpose-built infrastructure to support it.

article-image

The MicroStrategy founder understood digital scarcity long before Bitcoin, and it’s a story of bubbles, brokers and a “monster bull run.”

article-image

DAS panelists shared strong venture capital takeaways, from how big a raise should be to the role VCs play in the industry

article-image

Titan Exchange CEO Chris Chung says Titan bests Solana’s incumbent DEX aggregator Jupiter on price 80% of the time

article-image

The SEC’s newest statement on PoW mining adds further clarity, though a commissioner points out its limits

article-image

Markets react to Fed Chair Jerome Powell’s comments at yesterday’s FOMC meeting

article-image

At DAS, the US president noted he’s called upon Congress to enact “simple, common-sense rules” for stablecoins and market structure