# How We Built an Unstoppable Wallet at ETHGlobal HackMoney 2026

> When your stablecoins can be frozen by a third party, are you really in control?

**Published by:** [envelop](https://paragraph.com/@envelop/)
**Published on:** 2026-02-16
**URL:** https://paragraph.com/@envelop/how-we-built-an-unstoppable-wallet-at-ethglobal-hackmoney-2026

## Content

In the first week of February 2026, our Envelop Dev team had a compelling reason to experiment with account abstraction for secure stablecoin storage. The numbers tell a stark story: over the past year, stablecoin issuers have frozen over $500 million across more than 800 addresses. That's half a billion dollars, gone. Simply blacklisted.Cumulative USDT Banned AddressesThe Problem Nobody Talks AboutMost stablecoins are managed by centralized entities. This means any address can be blocked at any moment, for any reason. You might be a legitimate DeFi protocol, a DAO treasury, or just someone who happened to receive funds from the wrong source. It doesn't matter. If your address lands on the blacklist, your assets are effectively frozen. We decided to build a solution that makes this impossible.Where Are Your Stables Really?At ETHGlobal HACKMONEY 2026, we implemented a proof-of-concept that leverages a fundamental property of Uniswap V4: the PoolManager. All tokens are stored in a single contract. Think about what this means. When you open a liquidity position in Uniswap V4, your USDT and USDC balances at your EOA become zero. The tokens live in the PoolManager. The issuer sees the PoolManager address, not yours. Your position is represented by an NFT that you hold. This makes blacklisting your EOA pointless.Externally Owned Account (EOA): This is a type of Ethereum account controlled by a private key held by a user, rather than by code (smart contracts). Most standard crypto wallets, such as MetaMask, is EOAs.Meet Сensorship resistant AliceСensorship resistant AliceLet's say Alice wants to send 2 USDT to Bob. But there's a catch: she suspects her EOA might be (or might become) blacklisted. Here's how our solution works:Step 1: The SetupAlice opens a USDT/USDC liquidity position in Uniswap V4. Her stablecoins are now safely stored in the PoolManager, earning LP fees while they sit idle. Her EOA shows zero balance in the stablecoin contracts — nothing to freeze.Step 2: The Magic TransactionWhen Alice wants to pay Bob, she uses EIP-7702 to delegate her address to a smart wallet (we call it Uniswap Calibur). EIP-7702 is an Ethereum upgrade that gives regular user accounts (EOAs) "superpowers" by allowing them to temporarily act like smart contracts during a transaction.Then, in a single atomic transaction:A temporary proxy wallet is deployed (using EIP-1167 minimal proxy for gas efficiency)Required liquidity is withdrawn from Alice's position to the proxy walletThe proxy swaps USDC → USDT via Uniswap V4The proxy sends 2 USDT to BobThe observed sender on-chain? The proxy wallet is not Alice's EOA. The transaction Bob sees comes from a freshly deployed, single-use smart contract that didn't exist 30 seconds ago and will never be used again. Good luck blacklisting that.SubscribeThe Technical ArchitectureOur solution combines several cutting-edge technologies: Uniswap V4 Positions: The foundation. All liquidity in one place, represented by NFTs. EIP-7702: Account abstraction that lets Alice's EOA act like a smart contract temporarily. EIP-1167 (Minimal Proxy): The cheapest way to clone smart contract logic. We deploy a new proxy for every transaction. ProxySmartWallet: Our minimal smart wallet that receives liquidity, swaps, and transfers. Single-use by design. WalletFactory: Creates proxies on-demand using the minimal proxy pattern. You can see the complete flow in our demo transaction: https://uniscan.xyz/tx/0x5e03a1bc8d142c57ec3df726ee64557c2ebb371ccc717d4389c62bce27e4db37 In the explorer, you'll see Bob initiating the transaction (since Alice's EOA is delegated), the proxy wallet being created, liquidity being withdrawn, the swap happening, and finally the transfer to Bob. All atomic. All unstoppable.Private Wallet ConceptWhat We Learned Building ThisPrivacy Layer Is Free: We didn't set out to build a privacy tool, but that's what we got. Each transaction comes from a unique address that's never been used before and never will be again. The on-chain footprint looks completely disconnected. Uniswap V4 Changes Everything: The singleton PoolManager design isn't just about gas efficiency. It creates a natural custody model that's inherently resistant to address-based censorship. Trade-offs Matter: In our PoC, we simplified some things. For instance, we don't control slippage properly yet. This is fine for demonstration but needs work for production. We're transparent about this because real innovation requires honest assessment of limitations. The Tech Stack Is Ready: EIP-7702 combined with Uniswap V4 and modern account abstraction tools gave us everything we needed. The infrastructure for censorship-resistant finance is here, today.Current Status & What's NextWe've deployed on both BSC and Unichain: BSC:WalletFactory: 0xfcb6910d217AAc4B9d7a205473024964A08Bc8eCProxySmartWallet: 0xa5A1fF40a1F89F26Db124DC56ad6fD8aBb378f29Unichain:WalletFactory: 0xBDb5201565925AE934A5622F0E7091aFFceed5EBProxySmartWallet: 0x21c23bA0ec49c9440CD259cCB48ff9D06CD16522The code is fully open source: github.com/dao-envelop/ethglobal-private-wallet We're working on:Proper slippage protectionUX/UI integration into Envelop dAppMulti-DEX support for risk diversificationWho Needs This?Initially, we thought about DeFi protocols and DAOs with large treasuries. But the use cases are broader:High-Risk Users: Defi degens, Net Salkers, etc.Privacy-Conscious Individuals: People who don't want their spending patterns tracked on-chain.Cross-Border Payments: Scenarios where traditional censorship makes transfers difficult.Merchant Processors: Services accepting many payments that want to avoid centralized points of failure.Institutional Players: Family offices and funds that need both compliance and protection from arbitrary freezes.The Bigger PictureStablecoins have achieved product-market fit. They're moving trillions in value. But they come with a fundamental weakness: centralized control over who can use them.Our solution doesn't try to replace stablecoins or fight regulators. It simply leverages the existing DeFi infrastructure: Uniswap V4, account abstraction, smart contract wallets to create an operational model where address-based blacklisting doesn't work. Alice can still store her stables. She can still send them to Bob. The issuer still has all their normal controls. But they can't freeze Alice's EOA because that's not where the money lives. It's not about breaking the rules. It's about building systems that can't be arbitrarily shut down.Try It, Break It, Build With ItThis is a PoC. We built it in a hackathon. It has limitations. But it works, and it points toward something important. If you're interested in censorship-resistant stablecoin custody, reach out. If you spot security issues or architectural improvements, we want to hear them. If you want to build on top of this, the code is yours. The tools for unstoppable finance are here. We just have to use them.Watch our 4-minute video presentation: ETHGlobal Showcase GitHub: dao-envelop/ethglobal-private-wallet Built by the Envelop Dev Team at ETHGlobal HACKMONEY 2026Share

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