yellowfaucet

YellowFaucet is a project that showcases Yellow Network's state channel technology by building a developer faucet where test tokens are allocated instantly and gas-free through off-chain messages within a secured session; developers can perform hundreds of simulated test transactions off-chain, with the blockchain used only twice—to open and to finally settle the session—visually demonstrating massive gas savings and latency elimination compared to traditional, on-chain faucets.

We built a gasless, instant faucet using Yellow Network's state channels and the ERC-7824 Nitro Protocol. The tech stack includes yellow-ts for WebSocket communication, Viem for Ethereum interactions, and TypeScript for type safety. The architecture implements a dual-authentication system where both the faucet wallet and user wallet authenticate with Yellow Network using EIP-712 signatures. We generate ephemeral session keys with 1-hour expiry and 10 USDC spending limits for security. The core innovation is the three-phase state channel flow: (1) Opening a payment channel with weighted participants (faucet: 100%, user: 0%), (2) Updating state off-chain to transfer 5 USDC [10,0] → [5,5], and (3) Settling the final state on-chain. The hackiest part was the double-signing mechanism for channel closure. We manually parse the close message JSON, add an additional ECDSA signature from the faucet, then re-stringify it