EIP-7702: The Gateway to One-Click, Diversified DeFi Investments

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TL;DR

Ethereum’s upcoming EIP-7702 will give regular wallets (EOAs) powerful automation features, making one-click, diversified investments on-chain finally possible. Instead of manually approving, swapping, and providing liquidity for dozens of tokens, users will soon be able to deploy capital across multi-asset, multi-chain pools with just a single click—without giving up custody. Tools like All Weather Protocol are already building on this to bring an S&P 500-style investing experience to DeFi.

Why Diversified Investing Is Still Broken On-Chain

In traditional finance, investors can gain instant diversification via products like the S&P 500 ETF. In DeFi? Not so easy.

If you want to mimic that experience e.g., deploy capital into 50 tokens and provide liquidity, you’d currently need to:

• Approve every token

• Swap one by one

• Manually create LPs across different protocols

• Repeat all steps across chains if needed

That’s hundreds of transactions, hours of effort, and lots of gas fees. It's clunky, fragmented, and inefficient. And it stops many users from participating in on-chain diversification at all.

The Game-Changer: Ethereum’s EIP-7702

Photo by fichiokaku

Ethereum’s upcoming Pectra upgrade, expected mid-2024, introduces EIP-7702, a powerful improvement that lets EOAs (your typical wallet) temporarily act like a smart contract.

This is a big deal. It means your wallet can:

• Bundle multiple DeFi actions (approve, swap, LP) into one transaction

• Execute cross-chain operations

• Do all of the above without losing custody of your funds

Put simply, it’s account abstraction without friction. Wallets like Trust Wallet, and protocols like Rhinestone and Biconomy, are already integrating EIP-7702 to simplify user experiences and slash smart account deployment costs.

Photo by Coinglass

What It Unlocks for DeFi Users

With EIP-7702:

 One-click investing: Scripts handle all approvals, swaps, and liquidity actions behind the scenes.

No custody risks: Your assets stay in your wallet. No need to trust risky third-party contracts.

Chain abstraction: Deploy capital across multiple chains and protocols automatically.

This brings DeFi UX closer to the Web2 standards users are familiar with, without sacrificing decentralization or security.

A New Breed of On-Chain Products

Protocols are already building on top of EIP-7702 to unlock the “S&P 500 for crypto” vision:

• All Weather Protocol – A diversified, automated DeFi investment tool powered by EIP-7702, expected to launch soon.

• Rhinestone – Upgraded its ERC-7579 implementation to support 7702, letting EOAs tap into smart account functions seamlessly.

• Biconomy – Introduced “PREP” (Provably Rootless EIP-7702 Proxy), reducing smart account gas costs by up to 80%.

• Trust Wallet – Working on EIP-7702 integration for its SWIFT and Barzan smart wallets, enhancing cross-chain support.

Ready to Ditch Manual DeFi?

Still clicking through endless approval and LP screens? There’s a better way.

EIP-7702 marks a major UX leap, bringing the convenience of Web2 investing to the self-custodial, permissionless world of Web3. Keep an eye on wallet upgrades and DeFi protocols adopting it.

The future of DeFi is one-click, diversified, and fully in your control.

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