Debt Permits

Debt permits powered by EIP-712 and EIP-2612

A major innovation with Fuji V2 is leveraging the EIP-712 and EIP-2612 standards and bringing the so-called “permits” into debt management operations. The rationale is that users don’t interact directly with the smart contracts on the destination chain; they need to authorize another contract to act on their behalf.

Building on top of these EIPs solves that problem and significantly improves the user experience. EIP-712 allows for signing messages in a standardized manner while EIP-2612 significantly reduces the cost and friction when dealing with allowances for ERC-20 tokens (it removed the need to make a separate transaction to approve a contract).

Himalaya is leveraging both of these standards to allow for withdrawals-on-behalf and borrow-on-behalf of a user by following a structured message. That means we can make these cross-chain operations by acting on behalf of the user in a non-custodial manner on any chain, which is a key element for Fuji's cross-chain app (xApp).