Wallet Authentication

Wallet Authentication with Privy

What is Privy?

Privy is the wallet infrastructure embedded inside Axal AutoYield. Think of it as the secure plumbing that lets you use the dApp without installing a separate browser extension or juggling seed phrases.

Privy spins up a self-custodial wallet the moment you sign in (with email, passkey, or an external wallet). You alone control that wallet’s private key; neither Axal nor Privy can touch your funds.

Trusted Execution Environments (TEEs)

Privy utilizes Trusted Execution Environments (TEEs) to ensure the highest level of security for your private keys:

• Isolated Processing: Your keys are generated and stored in hardware-level isolated environments that are separated from the main operating system
• Encrypted Memory: Keys are processed in encrypted memory regions that cannot be accessed by any external processes
• Hardware Security: TEEs leverage hardware-based security features similar to those used in secure banking systems
• Zero Knowledge Design: The architecture ensures that neither Axal nor Privy staff can ever access your keys, even for debugging purposes

This means your private keys remain completely under your control at all times. Even if our servers were compromised, your wallet keys would remain secure within the TEE infrastructure.

Full Wallet Ownership

You always maintain complete ownership and portability of your wallet:

• Export Options: You can export your wallet’s private key or seed phrase at any time through your account settings
• Standard Compatibility: Exported wallets are fully compatible with any standard Ethereum wallet like MetaMask, Rainbow, or hardware wallets
• No Lock-In: Your funds are never tied to the Axal platform - you can access them directly through any compatible wallet
• Persistent Access: Even if Axal were to shut down, you would still have full access to your funds through your exported wallet credentials

We believe true self-custody means you should never be dependent on our platform to access your assets.

Gas Sponsorship for Yield Strategies

With Privy-generated wallets, we’re able to implement gas sponsorship for specific operations within our yield product. This means:

1. Your deposits and withdrawals can often be executed without you paying for gas
2. Rebalancing operations use sponsored gas to maintain optimal positions
3. Critical safety operations like auto-deleveraging happen seamlessly

Server Actions with Smart Contracts

Our backend infrastructure interacts with smart contracts to perform various yield-optimizing actions:

• Automatically harvesting yield rewards
• Rebalancing positions when market conditions change
• Executing complex multi-step transactions that would be difficult to manage manually

In short, Privy’s secure wallet infrastructure lets Axal offer powerful automation while keeping custody fully in your hands.