Privy Sponsor - AA Wallet with ERC-20 Gas Sponsorship

This project demonstrates how to create an Account Abstraction (AA) wallet and send sponsored transactions using ERC-20 tokens for gas payments.

Features

1. 🎯 Create an AA wallet using Account Kit
2. 💰 Send sponsored transactions using ERC-20 tokens (USDC) for gas
3. 🔧 Configurable via environment variables

Setup

1. Install dependencies:

npm install

2. Copy environment configuration:

cp .env.example .env

3. Update .env with your configuration:

• ALCHEMY_API_KEY: Your Alchemy API key
• GAS_MANAGER_POLICY_ID: Gas Manager policy ID from Alchemy dashboard
• TOKEN_ADDRESS: ERC-20 token address (defaults to USDC on Sepolia)
• TARGET_ADDRESS: Recipient address for the transaction
• MAX_TOKEN_AMOUNT: Maximum token amount for safety (defaults to 10 USDC)

Usage

Run the script:

npm run start

What it does

1. Creates an AA wallet using Account Kit and Light Account
2. Sets up ERC-20 gas sponsorship using your Gas Manager policy
3. Sends a sponsored transaction that:
   • Approves the paymaster to spend ERC-20 tokens
   • Executes your target transaction
   • Uses USDC (or your chosen ERC-20) to pay for gas instead of ETH

Configuration

The script uses these environment variables:

• ALCHEMY_API_KEY: Your Alchemy API key (required)
• GAS_MANAGER_POLICY_ID: Your gas policy ID (required)
• TOKEN_ADDRESS: ERC-20 token address (default: USDC on Sepolia)
• TARGET_ADDRESS: Target address for transaction
• MAX_TOKEN_AMOUNT: Safety limit for token spending
• PRIVATE_KEY: Private key (auto-generated if not provided)

Output

The script will show:

• ✅ AA wallet creation and address
• 🚀 Transaction submission
• 🧾 Transaction receipt with gas usage
• 💰 ERC-20 token used for gas payment

Requirements

• Node.js
• Alchemy API key
• Gas Manager policy configured in Alchemy dashboard
• ERC-20 tokens in the wallet for gas payments