LiFi Widget Incompatibility with Smart Contract Wallets (ZeroDev) — Throws `Invalid yParityOrV value`

[maxivarela]

🛡️ Bug Report: Invalid yParityOrV value when Using LiFi Widget with Smart Contract Wallet (Account Abstraction)

Summary

When using the LiFi Widget with a Smart Contract Wallet via Account Abstraction (specifically ZeroDev's Smart Account), the widget throws the following error during swap attempts:

Invalid yParityOrV value

This issue does not occur when using a standard EOA (Externally Owned Account) with the same widget and setup.

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Steps to Reproduce

1. Initialize a Smart Contract Wallet using ZeroDev (ERC-4337 compatible).
2. Use Dynamic as the wallet connector for the DApp.
3. Embed the LiFi Widget in the app with default setup.
4. Attempt a token swap through the widget.
5. Observe the error: Invalid yParityOrV value.

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Expected Behavior

• The widget should support swaps for Smart Contract Wallets (Account Abstraction) without throwing signature-related errors.
• The yParityOrV value should be properly handled or normalized in the underlying signing logic.

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Additional Details

• Wallet Provider: ZeroDev Smart Account
• Connector: Dynamic Labs
• Error only occurs with Smart Contract Wallet, not with EOA.
• The issue appears related to signature format expectations — AA wallets often don't expose standard eth_sign behavior, requiring different handling for transaction signing.

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Suggested Considerations

• Improve compatibility of LiFi Widget with Account Abstraction wallets (ERC-4337).
• Ensure signature handling in the widget or SDK supports AA-specific flows.
• Possibly provide a flag or recommended approach for Smart Account environments.

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Environment

Tool	Version/Details
LiFi Widget	3.21.3
ZeroDev SDK	5.4.26
Dynamic Labs	4.9.1
Browser/OS	Chrome version 137.0.7151.120 (Official Build) (arm64)

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Happy to provide additional technical details or test beta fixes. Let me know how I can assist!

[tomiiide]

@maxivarela Thanks for reporting this, can you provide an example repo, please? I'm having trouble reproducing this error.