Chainlink has recently introduced the Payment Abstraction system on Ethereum, which makes payments for services more convenient and simplifies the conversion of digital assets.
What is Payment Abstraction?
Chainlink Payment Abstraction enables users to pay for services with various digital assets, such as gas tokens and stablecoins, reducing friction and automating conversion to LINK tokens.
How Does Chainlink Payment Abstraction Work?
The system operates through multiple steps, allowing payments with different tokens, consolidating them onto a single blockchain, and converting to LINK using automation and decentralized exchanges.
Application: Chainlink Smart Value Recapture
The first practical application of Payment Abstraction allows DeFi applications to recapture MEV generated from Chainlink Data Feeds usage. Aave is the first protocol to integrate this technology.
The implementation of Payment Abstraction aims to boost the economic sustainability of the Chainlink network and streamline payment processes for users. It is expected to increase the adoption of Chainlink services and strengthen LINK token's position.
