Self-Custody
Last updated
Last updated
StarkPay is a self-custodial DeFi platform. User funds held on applications remain completely under his full control. These funds cannot be moved or sold without user permission and can always be recovered by the user even if - for some reason - the partner application were to stop operating.
This provides a level of security and transparency that wouldn’t be possible on a centralized exchange.
When users first onboard to StarkPay, they can choose between logging in with their main wallet, as in any DeFi application, with an email address or with social OAuth providers, thanks to our wallet abstraction service (coming soon). In any case, this first connection generates their smart wallet, which will be automatically and securely stored in the user’s local storage. The private key of this smart wallet is called a ‘StarKey’, and is a unique encryption key that can be recovered if lost by signing with the user main wallet or logging method. For each application, a unique StarKey is created. Users therefore have a different smart wallet for each partner application. Neither StarkPay nor its applications hold this StarKey.
The smart wallet enables users to control their funds and give permission to withdraw, bridge, send, subscribe or request a payment. Applications have no control over user funds. They simply design payment requests according to their business logic. When the user signs them, StarkPay takes charge of processing them.
As explained previously, a simple signature with the main wallet enables the user to create a smart wallet. Once created, users simply connect their main wallet to the StarkPay application of their choice to execute the transactions of their choice, without having to re-sign each time. The only transaction requiring a signature is the deposit from the main wallet to the user's smart wallet.
To illustrate, the deposit step is different from a deposit into a centralized exchange, as it moves users’ funds into their StarkPay smart wallet directly. The deposit is made in a single transaction. This allows the user to simply sign a transaction, without calculating the amount or entering a receipt address, thus avoiding address poisoning.
StarkPay smart wallets provide an improved, consistent user experience across the entire platform and all the chains and L2 we support. Users still control their funds, using signatures from the wallet they normally use, but with their smart wallet they now have several additional capabilities.
SN Stack framework, developed by our partner Starknet, powers self-custodial dApps, and employs innovative anti-rug mechanisms to ensure that users’ funds always remain in their custody.
One of the upgrades enabled by the StarkPay smart wallets and its is to abstract away transaction broadcasted by users. We provide Meta Transactions. When using the platform, users only need to sign transactions off-chain, which carries no cost, and send that signature to StarkPay. We then take care of broadcasting the transaction quickly and safely, paying the blockchain fee on the user’s behalf.
StarkPay provides smart wallets built on the SN Stack. We run a standalone instance, which is actually a fully fledged, customised Ethereum L2 rollup. This gives a huge amount of flexibility over what can be accomplished, and the user experience we can provide. The rollup enables users to perform emergency withdrawals out of the rollup, which defines the StarkPay shielded portfolio as self-custodial.
