Virtual Wallet Overview
The Virtual Wallet is our consumer facing application which utilizes the power of Virtual Rollups.
The Virtual Wallet is a user's Multi-Chain Passport to Earn Automatic Yield and Complete easy transactions. It serves two primary functions:
The Virtual Wallet effortlessly opens and operates ZK State Channels for the user, representing a Virtual Engine client in the user's browser.
The Virtual Wallet stakes funds locked in preexisting ZK State Channels to Lido, MakerDAO, and RocketPool, so capital that is being used to make trades and play games is simultaneously earning yield.
The Virtual Wallet is not a wallet. This allows the users to control custody of their funds through existing wallet services, like MetaMask. It works as follows:
User opens the Virtual Wallet. The user is prompted to deposit and sign with their existing wallet. Funds move from EOA to ZK State Channel smart contract.
This wallet is the only one that can later withdraw funds, so if keys are lost or stolen, Virtual Labs cannot recover your funds.
Tokens in the ZK State Channel can be used for trading, gaming, swapping, and any other action within Virtual Engine-powered DApps. Exact balances are displayed in the Virtual Wallet. Virtual Wallet user do not have to pay or approve gas transactions in the extension.
Friction is abstracted so the user experiences a decentralized Web3 application with the streamlined UX they are accustomed to in Web2.
97% of locked funds can be sent to community-approved, trusted contracts, such as Lido or MakerDAO.
While the audited ZK State Channel will only allow funds to move to specified addresses, such as Lido's Ethereum contracts, Virtual Labs has no control of funds past this point. Exploits in Lido could lead to exploits in Virtual, if users opt in to this yield-bearing Virtual Wallet.
The user can thus earn yield on locked funds, while still being able to seamlessly use and trade their tokens. Users can withdraw funds at any time with the same depositing wallet and always maintain full self-custody of their crypto.
The Virtual Wallet has partnered with Biconomy to provide social sign-in, so users without existing wallets will be able to use the Virtual Wallet as a self-custody wallet for zero-friction onboarding.
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