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What are DeFi Smart Accounts?

DeFi Smart Accounts (DSAs) are smart contract wallets that act as a unified proxy to interact with multiple DeFi protocols. Each DSA is a uniquely numbered smart account with its own Ethereum address that enables users to execute complex, multi-step transactions across protocols in a single transaction.
Every user can create multiple DSA accounts for different use cases, all controlled by their primary Ethereum address.

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Key Features

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Composability

DSAs enable seamless composability across DeFi protocols. You can combine actions from different protocols (Aave, Compound, Uniswap, etc.) into a single transaction, creating complex financial strategies that would otherwise require multiple transactions and higher gas costs.

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Authority Management

Each DSA supports multiple authorities - addresses that are authorized to execute transactions on behalf of the account. This enables:
  • Delegation of control to trusted addresses
  • Multi-signature functionality
  • Automated strategy execution through smart contracts

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Gas Efficiency

By batching multiple protocol interactions into a single transaction, DSAs significantly reduce gas costs compared to executing each action separately.

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Multi-Chain Support

DSAs are deployed across multiple chains:

Ethereum

Chain ID: 1

Polygon

Chain ID: 137

Arbitrum

Chain ID: 42161

Avalanche

Chain ID: 43114

Optimism

Chain ID: 10

Base

Chain ID: 8453

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How DSAs Work

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Account Structure

Each DSA has three key properties: 
interface Instance {
  id: number        // Unique DSA identifier
  address: string   // The DSA's Ethereum address
  version: number   // DSA version (1 or 2)
  chainId: ChainId  // The chain where the DSA exists
}

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Version Support

DSA supports two versions:
  • Version 1: Legacy DSA accounts with basic functionality
  • Version 2: Current standard with enhanced features and optimizations (recommended)
When creating a new DSA, version 2 is used by default unless specified otherwise.

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Creating a DSA

To create a new DSA account, use the build() method: 
// Simple creation
await dsa.build()

// With custom parameters
await dsa.build({
  authority: '0x...', // Custom authority address
  origin: '0x...',    // Origin for analytics
  version: 2,         // DSA version
  gasPrice: '50',     // Gas price in gwei
  from: '0x...'       // Account creating the DSA
})
The build() method returns a transaction hash. Once confirmed, the DSA is ready to use.

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Managing DSAs

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Fetching Accounts

Retrieve all DSAs owned by an address: 
const accounts = await dsa.getAccounts('0x...')
// Returns:
// [
//   {
//     id: 52,
//     address: "0x...",
//     version: 2
//   },
//   ...
// ]

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Setting Active Instance

Before casting spells, set which DSA to use: 
await dsa.setInstance(52) // Use DSA with ID 52
All subsequent operations will be executed through this DSA.

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Checking Account Details

Get detailed information about a specific DSA: 
const details = await dsa.getAccountIdDetails(52)
console.log(details)
// {
//   id: 52,
//   address: "0x...",
//   version: 2,
//   chainId: 1
// }

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Authority System

DSAs implement a flexible authority system for access control:

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Adding Authorities

You can authorize additional addresses to control your DSA: 
// Get current authorities
const authorities = await dsa.getAuthById(dsaId)

// Add new authority using the AUTHORITY-A connector
const spell = dsa.Spell()
spell.add({
  connector: 'AUTHORITY-A',
  method: 'add',
  args: ['0x...'] // New authority address
})
await spell.cast()

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Authority Use Cases

Delegate DSA control to a trusted address for automated operations or strategy execution.
Add multiple authorities to implement multi-signature functionality for enhanced security.
Authorize smart contracts to execute predefined strategies automatically based on market conditions.

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Security Considerations

DSAs are smart contracts that hold your funds. Only authorize addresses you completely trust, as authorities have full control over the account.

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Best Practices

  1. Verify Authority Addresses: Always double-check addresses before adding them as authorities
  2. Use Hardware Wallets: Protect your primary authority address with a hardware wallet
  3. Regular Audits: Periodically review authorized addresses using getAuthById()
  4. Separate Concerns: Create multiple DSAs for different strategies to isolate risk

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DSA Lifecycle

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Advanced Features

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Flash Loans

DSAs can leverage flash loans from Instapools for capital-efficient strategies: 
const spell = dsa.Spell()

// Borrow 10,000 DAI via flash loan
spell.add({
  connector: 'INSTAPOOL-D',
  method: 'flashBorrow',
  args: [daiAddress, '10000000000000000000000', 0, 0]
})

// Use borrowed funds for strategy
// ...

// Repay flash loan
spell.add({
  connector: 'INSTAPOOL-D',
  method: 'flashPayback',
  args: [daiAddress, 0, 0]
})

await spell.cast()

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Cross-Chain Operations

DSAs on different chains can be used for cross-chain strategies using bridge connectors: 
// Bridge assets from Ethereum to Polygon
spell.add({
  connector: 'POLYGON-BRIDGE-A',
  method: 'deposit',
  args: [tokenAddress, amount, 0, 0]
})

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Next Steps

Spells

Learn how to compose transactions with spells

Connectors

Explore available protocol connectors

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