Web3 Automation: Automated Blockchain Transactions
What is Web3 automation?
What is Web3 automation?
Web3 automation enables blockchain transactions to execute automatically without manual user intervention. This includes:
- Scheduled transactions: Execute at specific times or intervals
- Trigger-based execution: React to onchain or offchain events
- Conditional operations: Execute when certain conditions are met
- Autonomous agents: AI or rule-based systems managing onchain activities
What are common Web3 automation use cases?
What are common Web3 automation use cases?
| Category | Use Cases |
|---|---|
| DeFi | Auto-compounding yields, rebalancing portfolios, stop-loss orders, recurring investments (DCA) |
| Trading | Limit orders, arbitrage bots, MEV strategies, market making |
| Treasury | Scheduled payments, payroll, vesting distributions |
| Gaming | Auto-claiming rewards, resource harvesting, scheduled actions |
| Infrastructure | Oracle updates, keeper operations, protocol maintenance |
| Personal | Subscription payments, recurring transfers, automated savings |
How do automated transactions work?
How do automated transactions work?
Automated transactions require three components:With session keys, users can authorize specific automated actions without exposing their main private key.
- Authorization: User grants permission for specific actions
- Trigger: Condition or schedule that initiates execution
- Executor: Service that submits the transaction when triggered
What are session keys and how do they enable automation?
What are session keys and how do they enable automation?
Session keys are temporary, scoped signing keys that enable secure automation:The executor uses this session key to submit transactions within the defined scope.
- Time-limited: Valid only for a specific duration
- Action-scoped: Can only perform specific operations
- Revocable: User can cancel authorization anytime
- Non-custodial: User retains full control of main wallet
What are agentic signers?
What are agentic signers?
Agentic signers are autonomous programs that hold session keys and execute transactions based on predefined logic or AI decisions. Types include:
| Type | Description | Example |
|---|---|---|
| Rule-based | Executes on fixed conditions | Stop-loss bot: sell if price drops 10% |
| Schedule-based | Executes at intervals | DCA bot: buy $100 ETH every week |
| AI-powered | Uses ML for decisions | Trading agent: analyze market and optimize entries |
| Event-driven | Reacts to onchain events | Arbitrage bot: execute when price discrepancy detected |
How do I set up automated DeFi trades?
How do I set up automated DeFi trades?
Setting up automated trading with Biconomy involves:Step 1: Create a smart account with MEEStep 2: Define automation policyStep 3: Grant session to executorStep 4: Configure automation logic
MEE (Modular Execution Environment) provides all ERC-4337 bundler and paymaster functionality needed for automation, plus cross-chain capabilities.
What security measures exist for automation?
What security measures exist for automation?
Biconomy’s automation infrastructure includes multiple security layers:
| Protection | Description |
|---|---|
| Scoped permissions | Session keys can only perform explicitly allowed actions |
| Spending limits | Per-transaction, daily, and total limits on value |
| Time bounds | Sessions automatically expire after set duration |
| Revocation | Users can cancel sessions instantly |
| Allowlists | Restrict to specific contracts and functions |
| Rate limits | Prevent excessive transaction frequency |
Can I automate cross-chain operations?
Can I automate cross-chain operations?
Yes! Biconomy’s automation supports cross-chain workflows:The automation service handles:
- Cross-chain message passing
- Bridge monitoring
- Gas on all chains (can be sponsored)
- Failure recovery
What's the difference between keepers and automation?
What's the difference between keepers and automation?
| Aspect | Traditional Keepers | Smart Account Automation |
|---|---|---|
| Control | Protocol-controlled | User-controlled |
| Scope | Protocol-specific tasks | Any user-defined action |
| Authorization | Relies on protocol permissions | Session keys with user consent |
| Flexibility | Fixed functionality | Fully programmable |
| Cost | Usually subsidized by protocol | User or sponsor pays |
How do I build an AI-powered trading agent?
How do I build an AI-powered trading agent?
Building an AI agent with Biconomy MEE: