TLDR: Smart Deposit Addresses enable applications to turn any action into a simple token transfer for the user. Users send tokens to a unique deposit address, and receive the desired asset, while LI.FI handles orchestration and execution of any type of action, like a swap, cross-chain transaction, vault deposit, or complex composed actions, in the background.

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Plenty has been written about how complicated crypto user experience can be - it’s a tale that goes back to the very beginning of the industry. But the user experience today doesn’t have to be complicated. In fact, it can be as simple as Send → Receive.

The simplest action in crypto, or in the world of finance more broadly, is sending funds from one account to another. You have funds in one place, and in order to transact (buy something at a grocery store, send money to another person, or make almost any other payment) funds move from one account to another. 

Everyone is used to this flow. The regular user is already very familiar with having a “To” address or account where they need to send funds to make a transaction happen, while everything else gets taken care of in the background.

That very user experience is now possible in crypto. 

Send → Receive. That’s it, two steps. What happens between those two steps can be considerably more complicated, but the user doesn’t have to worry about it.

Today, we’re introducing Smart Deposit Addresses, the primitive that makes this user experience possible.

With Smart Deposit Addresses, instead of asking the user to execute the transaction themselves, an application can generate a unique deposit address for the transaction. The user simply sends tokens to it. LI.FI takes it from there, and the user receives their desired assets. Easy as you like it.

What can you build with Smart Deposit Addresses?

Smart Deposit Addresses can simplify any product flow where users need to move assets.

Deposits to fund user balances in an app

This is especially relevant for prediction markets, neobanks, peer-to-peer payment apps, social trading apps, or really any product bringing in users beyond crypto-native circles. You don’t want to bombard those users with a crypto onboarding guide just to get started.

Smart Deposit Addresses simplify that experience because users can fund their account without giving wallet approvals or signing a transaction. They simply send funds to the deposit address and their account gets funded. That’s all they need to know. Everything else gets taken care of in the background by LI.FI and can be customized around how the application is built.

The user can send funds from one supported chain or asset, and LI.FI can get those funds to the right chain, convert them into the right asset, and have the balance appear inside the application,  without the user needing to understand any of the steps required to make that happen. 

The magician doesn’t have to reveal how they pulled off the trick. As long as the rabbit comes out of the hat, it’s a good show.

Stablecoin payments 

Another major use case for better user experience is stablecoin payments, or payments in general. Again, this comes back to how people are already used to paying in their day-to-day lives. Send → Receive.

Users select the account they want to send funds from, select or scan the account they want to send them to, and that’s it. Everything else gets taken care of by orchestration systems like LI.FI in the background.

That’s the payments user experience we need in crypto, and that’s what Smart Deposit Addresses make possible.

The sender can send funds from a supported asset and chain, while the receiver gets the asset they accept payments in, on the chain where they want to receive it. Neither side needs to worry about the infrastructure required in between. It’s a win-win, and a much more natural user experience for crypto payments.

Access to tokenized stocks or long-tail assets 

Blue-chip crypto assets, long-tail assets like memecoins, and real-world assets like tokenized stocks are among the assets users increasingly want exposure to in crypto. Smart Deposit Addresses can simplify the experience of accessing those assets too.

Applications offering these assets can accept deposits from supported chains and use LI.FI’s composed routes to deliver the asset requested by the user.

The user doesn’t need to source that asset themselves, or even start on the same chain, before using your product. They send funds. LI.FI handles the orchestration and execution. The desired asset arrives.

Now available for enterprises building with LI.FI

Smart Deposit Addresses are available today as an enterprise feature and are enabled per integrator.

Current live routes include:

• Same-chain EVM swaps

• Cross-chain EVM → EVM transactions

• EVM → Solana

• Solana → EVM

• Bitcoin → EVM in beta

• ERC-4626 vault deposits

• Composed routes for long-tail assets and tokenized stocks

• Amount-flexible cross-chain deposits

Support for additional blockchains, routes, and use cases is already in development, and LI.FI can prioritize additional features based on partner demand.

Existing LI.FI partners get in touch with us through their primary communication channel with LI.FI to enable Smart Deposit Addresses and discuss the use cases and flows they need.

About LI.FI

LI.FI is the universal liquidity layer trusted by more than 1,000 enterprises to unlock unified market access to digital assets.

LI.FI reduces the complexity of building digital asset products by orchestrating liquidity across permissioned and permissionless venues, powering stablecoin and RWA flows across more than 60 chains through a single integration.