What is Paymaster?

The ERC-4337 includes a smart contract specifically designed to manage gas payment policies. This feature allows developers to offer their users gas-free experiences through sponsored transactions or by utilizing ERC-20 tokens to cover gas fees.

These policies introduce versatility in two key aspects: (1) the mode of gas payment, allowing for different currencies to be used (2) identifying who bears the cost of gas, effectively eliminating the need for users to possess native blockchain tokens for blockchain interactions.

Paymasters, a component of this system, empower developers with several capabilities:

1. Sponsoring Gas Fees: Developers can cover the gas costs for their users, facilitating smoother interactions.

2. Gas Payments in Stablecoins: This option allows gas fees to be paid using stablecoins, providing a more predictable expense.

3. Gas Payments in Other ERC-20 Tokens: Developers can enable users to pay gas fees with a variety of ERC-20 tokens, offering greater flexibility.

Paymaster

Sources: Ethereum, ERC4337.io, Alchemy