// GLOSSARY -- WEB3 INFRASTRUCTURE

What is a Base Smart Wallet?

1 min read Updated

A smart contract wallet on the Base L2 chain providing programmable transaction validation, session keys, and gas sponsorship — commonly used as the underlying wallet for AI agents in the x402 ecosystem.

WHY IT MATTERS

Base Smart Wallets combine account abstraction (ERC-4337) with Coinbase's infrastructure on the Base L2. They support features critical for agents: session keys for temporary authorization, programmable validation for spending rules, and gas sponsorship for seamless UX.

The low gas costs on Base make these wallets practical for high-frequency agent micropayments — a key requirement for pay-per-use agent commerce.

As the default wallet type in CDP's AgentKit, Base Smart Wallets are becoming the standard for agents operating in the x402 ecosystem.

HOW POLICYLAYER USES THIS

PolicyLayer adds programmable spending controls to Base Smart Wallets. While the wallet provides on-chain validation, PolicyLayer adds off-chain policy evaluation for richer rules and centralized management across agent fleets.

FREQUENTLY ASKED QUESTIONS

Why Base specifically?
Base offers low fees (~$0.001/tx), fast confirmation, Coinbase ecosystem integration, and native x402 support. It's optimized for the high-frequency, low-value transactions agents make.
Can I use other wallets?
Yes. PolicyLayer works with any wallet on any supported chain. Base Smart Wallets are common but not required.
What about other L2s?
PolicyLayer supports multiple L2s. Base is the leading choice for agent payments due to x402 integration, but Arbitrum, Optimism, and others are supported.

FURTHER READING

Enforce policies on every tool call

Intercept is the open-source MCP proxy that enforces YAML policies on AI agent tool calls. No code changes needed.

npx -y @policylayer/intercept
github.com/policylayer/intercept →
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