diff --git a/addresses/address.json b/addresses/address.json
index 96456599..278c7afe 100755
--- a/addresses/address.json
+++ b/addresses/address.json
@@ -145,10 +145,10 @@
     "VestingWalletC": "0x29F74B853C4B8D36273666FB63a3b71c754424Ed",
     "OceanNodesBooster": "0x73558Ef3bb6543A8107ac032C5a98Da03ceb0eEf",
     "OPFCommunityFeeCollectorCompute": "0x1705CaF86B86e85804e20FE342f39B17322Ff592",
-    "Escrow": "0x225Fd0CfA1200F1e42c6C54071B646738A1d81bb",
+    "Escrow": "0xC98C71A9efeF2a940c73B7986f1D8469f1815F94",
     "AccessListFactory": "0x7ed6ac4243472adA55408fEE45c5Dff379f7aBE0",
     "EnterpriseFeeCollector": "0x254302d1Ae1e1200319c885D93D40a8927ACFcD7",
-    "EnterpriseEscrow": "0x7F773EE2B8AFE158FA03B72fC20672B408Cd9818",
+    "EnterpriseEscrow": "0x2213FeBd4E681633bE255AfceFbd233EbcFc33c9",
     "FixedPriceEnterprise": "0x6C97D128f7E7D21ac3C722458Dc5d71f7e1bBa6e"
   },
   "goerli": {
@@ -305,14 +305,14 @@
     "Dispenser": "0x2720d405ef7cDC8a2E2e5AeBC8883C99611d893C",
     "ERC721Factory": "0xEF62FB495266C72a5212A11Dce8baa79Ec0ABeB1",
     "OPFCommunityFeeCollectorCompute": "0x0Ee8b03Dafc868a0899ebE1c12d734D53A957250",
-    "Escrow": "0x8149276f275EEFAc110D74AFE8AFECEaeC7d1593",
+    "Escrow": "0xd09789Ce05aa0f6feFc18315de4964Db07Cc0618",
     "EnterpriseFeeCollector": "0x8c98ea273bA22327F896Aa1a1a46E1BFf56e9b1D",
     "FixedPriceEnterprise": "0xfa48673a7C36A2A768f89AC1ee8C355D5c367B02",
     "AccessListFactory": "0x43eC0a34E1b70C7f8E579ab866F37642777727E7",
-    "EnterpriseEscrow": "0x49E35cd2bAE043Abd9074B6e5a649a5AdEB05C33",
-    "COMPY":"0x973e69303259B0c2543a38665122b773D28405fB",
-    "COMPYFaucet":"0x3EFDD8f728c8e774aB81D14d0B2F07a8238960f4",
-    "COMPYSwap":"0x8B8E187CF9c551e63f54AA04E21F48CDAF2296aE"
+    "EnterpriseEscrow": "0x6fd867E5AEE6D62a24f97939db90C4e67A73A651",
+    "COMPY": "0x973e69303259B0c2543a38665122b773D28405fB",
+    "COMPYFaucet": "0x3EFDD8f728c8e774aB81D14d0B2F07a8238960f4",
+    "COMPYSwap": "0x8B8E187CF9c551e63f54AA04E21F48CDAF2296aE"
   },
   "oasis_sapphire": {
     "chainId": 23294,
@@ -339,7 +339,7 @@
     "AccessListFactory": "0x12bB8D85a091A69A07E22E52d4567dBB91568f52",
     "BatchPayments": "0x9497d1d64F2aFeBcd4f9916Eef3d9094E5Df962f",
     "OPFCommunityFeeCollectorCompute": "0xE5aa2C9B551aFcA4C0A98BB3B37D7A43084d0a66",
-    "Escrow": "0xA0329eFFa1370eAb1DC5998Db4292ae0F535a282"
+    "Escrow": "0x0Ee8b03Dafc868a0899ebE1c12d734D53A957250"
   },
   "optimism_sepolia": {
     "chainId": 11155420,
@@ -358,7 +358,7 @@
     "Dispenser": "0x30E4CC2C7A9c6aA2b2Ce93586E3Df24a3A00bcDD",
     "ERC721Factory": "0xDEfD0018969cd2d4E648209F876ADe184815f038",
     "OPFCommunityFeeCollectorCompute": "0xe47991939632757DEe324E8ec9A3268c62C0DB76",
-    "Escrow": "0xD3173c3E3d9ea662E914C30Bcd647eF573AcE405",
+    "Escrow": "0x23A8b2D7176485a6349e4830605F323f31019333",
     "AccessListFactory": "0xEcD0C3519a081e3924D6F3197f86980eA7dfCf71"
   },
   "optimism": {
@@ -378,10 +378,10 @@
     "Dispenser": "0x2112Eb973af1DBf83a4f11eda82f7a7527D7Fde5",
     "ERC721Factory": "0x80E63f73cAc60c1662f27D2DFd2EA834acddBaa8",
     "OPFCommunityFeeCollectorCompute": "0xc37F8341Ac6e4a94538302bCd4d49Cf0852D30C0",
-    "Escrow": "0x98679D582AB3398C03D3308dEB9c7AeC50B52ded",
+    "Escrow": "0x4dD281EB67DED07E76E413Df16176D66ae69e240",
     "AccessListFactory": "0x4E6058dC00e90C0DCA47A5d0D3346F409939A5ab",
     "EnterpriseFeeCollector": "0xE9397625Df9B63f0C152f975234b7988b54710B8",
-    "EnterpriseEscrow": "0xc313e19146Fc9a04470689C9d41a4D3054693531",
+    "EnterpriseEscrow": "0xFe7967A5176fDAFa8DE109b3507016B885a82D6e",
     "FixedPriceEnterprise": "0x1d535147a97bd87c8443125376E6671B60556E07"
   },
   "pontus-x-devnet": {
@@ -418,10 +418,10 @@
     "ERC721Factory": "0x159924ca0F47D6F704B97E29099b89e518A17B5E",
     "BatchPayments": "0xFe7967A5176fDAFa8DE109b3507016B885a82D6e",
     "OPFCommunityFeeCollectorCompute": "0x7b0576CF01E868bce46cca91b2a8E674141b0355",
-    "Escrow": "0xf0c7A31D7Ee26bEBfb4BAD8e37490bEadE3F846f",
+    "Escrow": "0x43eC0a34E1b70C7f8E579ab866F37642777727E7",
     "AccessListFactory": "0xE5aa2C9B551aFcA4C0A98BB3B37D7A43084d0a66",
-    "COMPY":"0x298f163244e0c8cc9316D6E97162e5792ac5d410",
-    "COMPYFaucet":"0x23A8b2D7176485a6349e4830605F323f31019333",
-    "COMPYSwap":"0xb65F19225fEBb650Fcc211dC9F18FEC6f4a328D5"
+    "COMPY": "0x298f163244e0c8cc9316D6E97162e5792ac5d410",
+    "COMPYFaucet": "0x23A8b2D7176485a6349e4830605F323f31019333",
+    "COMPYSwap": "0xb65F19225fEBb650Fcc211dC9F18FEC6f4a328D5"
   }
 }
\ No newline at end of file
diff --git a/contracts/escrow/EnterpriseEscrow.sol b/contracts/escrow/EnterpriseEscrow.sol
index 463c98f0..f56ff335 100644
--- a/contracts/escrow/EnterpriseEscrow.sol
+++ b/contracts/escrow/EnterpriseEscrow.sol
@@ -6,6 +6,7 @@ pragma solidity 0.8.12;
 import "@openzeppelin/contracts/token/ERC20/ERC20.sol";
 import "@openzeppelin/contracts/token/ERC20/IERC20.sol";
 import "@openzeppelin/contracts/token/ERC20/utils/SafeERC20.sol";
+import "@openzeppelin/contracts/token/ERC20/extensions/IERC20Permit.sol";
 import "@openzeppelin/contracts/utils/math/SafeMath.sol";
 import "@openzeppelin/contracts/security/ReentrancyGuard.sol";
 import "../interfaces/IEnterpriseFeeCollector.sol";
@@ -111,6 +112,40 @@ contract EnterpriseEscrow is
             _deposit(token[i],amount[i]);
         }
     }
+
+    /**
+     * @dev depositWithPermit
+     *      Called by payer to deposit funds in the contract using ERC20Permit
+     *      This function allows users to deposit without a separate approval transaction
+     *      
+     * @param token token to deposit
+     * @param amount amount in wei to deposit
+     * @param deadline The time at which the permit expires (unix timestamp)
+     * @param v The recovery byte of the signature
+     * @param r Half of the ECDSA signature pair
+     * @param s Half of the ECDSA signature pair
+     */
+    function depositWithPermit(
+        address token,
+        uint256 amount,
+        uint256 deadline,
+        uint8 v,
+        bytes32 r,
+        bytes32 s
+    ) external nonReentrant {
+        // Use permit to approve this contract to spend user's tokens
+        IERC20Permit(token).permit(
+            msg.sender,
+            address(this),
+            amount,
+            deadline,
+            v,
+            r,
+            s
+        );
+        // Deposit the tokens
+        _deposit(token, amount);
+    }
     function _deposit(address token,uint256 amount) internal{
         require(token!=address(0),"Invalid token address");
         funds[msg.sender][token].available+=amount;
diff --git a/contracts/escrow/Escrow.sol b/contracts/escrow/Escrow.sol
index 99b0ef8f..3f6b9807 100644
--- a/contracts/escrow/Escrow.sol
+++ b/contracts/escrow/Escrow.sol
@@ -6,6 +6,7 @@ pragma solidity 0.8.12;
 import "@openzeppelin/contracts/token/ERC20/ERC20.sol";
 import "@openzeppelin/contracts/token/ERC20/IERC20.sol";
 import "@openzeppelin/contracts/token/ERC20/utils/SafeERC20.sol";
+import "@openzeppelin/contracts/token/ERC20/extensions/IERC20Permit.sol";
 import "@openzeppelin/contracts/utils/math/SafeMath.sol";
 import "@openzeppelin/contracts/security/ReentrancyGuard.sol";
 import "../interfaces/IFactoryRouter.sol";
@@ -115,6 +116,40 @@ contract Escrow is
             _deposit(token[i],amount[i]);
         }
     }
+
+    /**
+     * @dev depositWithPermit
+     *      Called by payer to deposit funds in the contract using ERC20Permit
+     *      This function allows users to deposit without a separate approval transaction
+     *      
+     * @param token token to deposit
+     * @param amount amount in wei to deposit
+     * @param deadline The time at which the permit expires (unix timestamp)
+     * @param v The recovery byte of the signature
+     * @param r Half of the ECDSA signature pair
+     * @param s Half of the ECDSA signature pair
+     */
+    function depositWithPermit(
+        address token,
+        uint256 amount,
+        uint256 deadline,
+        uint8 v,
+        bytes32 r,
+        bytes32 s
+    ) external nonReentrant {
+        // Use permit to approve this contract to spend user's tokens
+        IERC20Permit(token).permit(
+            msg.sender,
+            address(this),
+            amount,
+            deadline,
+            v,
+            r,
+            s
+        );
+        // Deposit the tokens
+        _deposit(token, amount);
+    }
     function _deposit(address token,uint256 amount) internal{
         require(token!=address(0),"Invalid token address");
         funds[msg.sender][token].available+=amount;
diff --git a/contracts/utils/mock/MockERC20Permit.sol b/contracts/utils/mock/MockERC20Permit.sol
new file mode 100644
index 00000000..42e2aee0
--- /dev/null
+++ b/contracts/utils/mock/MockERC20Permit.sol
@@ -0,0 +1,37 @@
+pragma solidity 0.8.12;
+// Copyright BigchainDB GmbH and Ocean Protocol contributors
+// SPDX-License-Identifier: (Apache-2.0 AND CC-BY-4.0)
+// Code is Apache-2.0 and docs are CC-BY-4.0
+
+import "@openzeppelin/contracts/token/ERC20/ERC20.sol";
+import "@openzeppelin/contracts/token/ERC20/extensions/ERC20Permit.sol";
+
+/**
+ * @dev Mock ERC20 token with configurable decimals and ERC20Permit support.
+ *      This is a test utility contract that implements ERC20Permit for testing permit functionality.
+ */
+contract MockERC20Permit is ERC20, ERC20Permit {
+    uint8 private _decimals;
+
+    /**
+     * @dev Sets the values for {name}, {symbol}, and {decimals}.
+     * @param name_ Token name
+     * @param symbol_ Token symbol
+     * @param decimals_ Number of decimals
+     */
+    constructor(
+        string memory name_,
+        string memory symbol_,
+        uint8 decimals_
+    ) ERC20(name_, symbol_) ERC20Permit(name_) {
+        _decimals = decimals_;
+        _mint(msg.sender, 10e25);
+    }
+
+    /**
+     * @dev Returns the number of decimals used to get its user representation.
+     */
+    function decimals() public view virtual override returns (uint8) {
+        return _decimals;
+    }
+}
diff --git a/scripts/deploy_enterpriseescrow.js b/scripts/deploy_enterpriseescrow.js
index 74bfa195..e4847add 100644
--- a/scripts/deploy_enterpriseescrow.js
+++ b/scripts/deploy_enterpriseescrow.js
@@ -49,7 +49,7 @@ async function main() {
     case 1:
       networkName = "mainnet";
       gasLimit = 6500000;
-      gasPrice = ethers.utils.parseUnits("1.15", "gwei");
+      gasPrice = ethers.utils.parseUnits("0.08", "gwei");
       break;
     case 10:
       networkName = "optimism";
@@ -58,7 +58,7 @@ async function main() {
       break;
     case 11155111:
       networkName = "sepolia";
-      gasPrice = ethers.utils.parseUnits("0.001000011", "gwei");
+      gasPrice = ethers.utils.parseUnits("5", "gwei");
       gasLimit = 6500000;
       break;
   }
@@ -99,7 +99,7 @@ async function main() {
     addresses.EnterpriseFeeCollector,
     options
   );
-  await deployEscrow.deployTransaction.wait();
+  await deployEscrow.deployTransaction.wait(1);
   if (show_verify) {
     console.log("\tRun the following to verify on etherscan");
     console.log(
@@ -116,13 +116,6 @@ async function main() {
   if (addressFile) {
     // write address.json if needed
     oldAddresses[networkName] = addresses;
-    if (logging)
-      console.info(
-        "writing to " +
-          addressFile +
-          "\r\n" +
-          JSON.stringify(oldAddresses, null, 2)
-      );
     try {
       fs.writeFileSync(addressFile, JSON.stringify(oldAddresses, null, 2));
     } catch (e) {
diff --git a/scripts/deploy_escrow.js b/scripts/deploy_escrow.js
index 2f4a70ff..a2389902 100644
--- a/scripts/deploy_escrow.js
+++ b/scripts/deploy_escrow.js
@@ -92,7 +92,7 @@ async function main() {
         networkName = "sepolia";
         OPFOwner = '0xC7EC1970B09224B317c52d92f37F5e1E4fF6B687';
         RouterAddress = "0x2112Eb973af1DBf83a4f11eda82f7a7527D7Fde5";
-        gasPrice = ethers.utils.parseUnits('0.001000011', 'gwei')
+        gasPrice = ethers.utils.parseUnits('5', 'gwei')
         gasLimit = 5000000
         break;
     case 11155420:
@@ -167,7 +167,7 @@ async function main() {
     );
     
     const deployEscrow = await Escrow.connect(owner).deploy(RouterAddress,addresses.OPFCommunityFeeCollectorCompute,options)
-    await deployEscrow.deployTransaction.wait();
+    await deployEscrow.deployTransaction.wait(1);
     if (show_verify) {
       console.log("\tRun the following to verify on etherscan");
       console.log("\tnpx hardhat verify --network " + networkName + " " + deployEscrow.address+ " " + RouterAddress + " " + addresses.OPFCommunityFeeCollectorCompute)
diff --git a/test/unit/escrow/EnterpriseEscrow.test.js b/test/unit/escrow/EnterpriseEscrow.test.js
index 72ca083c..f92e809d 100644
--- a/test/unit/escrow/EnterpriseEscrow.test.js
+++ b/test/unit/escrow/EnterpriseEscrow.test.js
@@ -15,10 +15,46 @@ const fastForward = async (seconds) => {
   await ethers.provider.send("evm_increaseTime", [seconds]);
   await ethers.provider.send("evm_mine");
 }
+
+// Helper function to sign ERC20Permit data
+async function signPermit(signer, token, spender, amount, deadline, nonce) {
+  const name = await token.name();
+  const chainId = (await ethers.provider.getNetwork()).chainId;
+  
+  const domain = {
+    name: name,
+    version: "1",
+    chainId: chainId,
+    verifyingContract: token.address,
+  };
+  
+  const types = {
+    Permit: [
+      { name: "owner", type: "address" },
+      { name: "spender", type: "address" },
+      { name: "value", type: "uint256" },
+      { name: "nonce", type: "uint256" },
+      { name: "deadline", type: "uint256" },
+    ],
+  };
+  
+  const value = {
+    owner: signer.address,
+    spender: spender,
+    value: amount,
+    nonce: nonce,
+    deadline: deadline,
+  };
+  
+  const signature = await signer._signTypedData(domain, types, value);
+  return ethers.utils.splitSignature(signature);
+}
+
 // Start test block
 describe('Escrow tests', function () {
   let Mock20Contract;
   let Mock20DecimalsContract;
+  let Mock20PermitContract;
   let EscrowContract;
   let FactoryRouter
   let signers;
@@ -37,11 +73,14 @@ describe('Escrow tests', function () {
     const EnterpriseFeeCollector = await ethers.getContractFactory("EnterpriseFeeCollector");
     const MockErc20 = await ethers.getContractFactory('MockERC20');
     const MockErc20Decimals = await ethers.getContractFactory('MockERC20Decimals');
+    const MockErc20Permit = await ethers.getContractFactory('MockERC20Permit');
     const Escrow = await ethers.getContractFactory('EnterpriseEscrow');
     Mock20Contract = await MockErc20.deploy(signers[0].address,"MockERC20", 'MockERC20');
     Mock20DecimalsContract = await MockErc20Decimals.deploy("Mock6Digits", 'Mock6Digits', 6);
+    Mock20PermitContract = await MockErc20Permit.deploy("MockPermit", 'MPERMIT', 18);
     await Mock20Contract.deployed();
     await Mock20DecimalsContract.deployed();
+    await Mock20PermitContract.deployed();
     // DEPLOY ROUTER, SETTING OWNER
     FactoryRouter = await Router.deploy(
       signers[0].address,
@@ -62,8 +101,13 @@ describe('Escrow tests', function () {
     await Mock20DecimalsContract.transfer(payer1.address,ethers.utils.parseUnits("10000", 6))
     await Mock20DecimalsContract.transfer(payer2.address,ethers.utils.parseUnits("10000", 6))
     await Mock20DecimalsContract.transfer(payer3.address,ethers.utils.parseUnits("10000", 6))
+    // Transfer permit tokens to payers
+    await Mock20PermitContract.transfer(payer1.address,web3.utils.toWei("10000"))
+    await Mock20PermitContract.transfer(payer2.address,web3.utils.toWei("10000"))
+    await Mock20PermitContract.transfer(payer3.address,web3.utils.toWei("10000"))
     await EnterpriseFeeCollectorContract.connect(payer1).updateToken(Mock20Contract.address, 1, 10, ethers.utils.parseEther('0.01'), true);
     await EnterpriseFeeCollectorContract.connect(payer1).updateToken(Mock20DecimalsContract.address, 5, 50, ethers.utils.parseEther('0.1'), true);
+    await EnterpriseFeeCollectorContract.connect(payer1).updateToken(Mock20PermitContract.address, 1, 10, ethers.utils.parseEther('0.01'), true);
   });
 
 
@@ -337,4 +381,152 @@ it('Escrow - lock', async function () {
     await EscrowContract.connect(payer1).withdraw([Mock20Contract.address],[payer1Funds.available]);
     expect(await EscrowContract.connect(payer1).getUserTokens(payer1.address)).does.not.include(Mock20Contract.address);
   });
+
+  it('Escrow - depositWithPermit', async function () {
+    const depositAmount = web3.utils.toWei("100");
+    const block = await ethers.provider.getBlock("latest");
+    const deadline = block.timestamp + 3600; // 1 hour from now
+    const nonce = await Mock20PermitContract.nonces(payer1.address);
+
+    // Get initial balances
+    const contractBalanceBefore = await Mock20PermitContract.balanceOf(EscrowContract.address);
+    const payerBalanceBefore = await Mock20PermitContract.balanceOf(payer1.address);
+    const fundTokensBefore = await EscrowContract.connect(payer1).getUserTokens(payer1.address);
+
+    // Sign permit
+    const { v, r, s } = await signPermit(
+      payer1,
+      Mock20PermitContract,
+      EscrowContract.address,
+      depositAmount,
+      deadline,
+      nonce
+    );
+
+    // Deposit with permit (no prior approval needed)
+    const tx = await EscrowContract.connect(payer1).depositWithPermit(
+      Mock20PermitContract.address,
+      depositAmount,
+      deadline,
+      v,
+      r,
+      s
+    );
+    const txReceipt = await tx.wait();
+
+    // Check balances after deposit
+    const contractBalanceAfter = await Mock20PermitContract.balanceOf(EscrowContract.address);
+    const payerBalanceAfter = await Mock20PermitContract.balanceOf(payer1.address);
+    const fundTokensAfter = await EscrowContract.connect(payer1).getUserTokens(payer1.address);
+
+    // Verify balances
+    expect(contractBalanceAfter).to.equal(contractBalanceBefore.add(depositAmount));
+    expect(payerBalanceAfter).to.equal(payerBalanceBefore.sub(depositAmount));
+    expect(fundTokensAfter).to.include(Mock20PermitContract.address);
+
+    // Verify funds
+    const funds = await EscrowContract.connect(payer1).getFunds(Mock20PermitContract.address);
+    expect(funds.available).to.equal(depositAmount);
+    expect(funds.locked).to.equal(0);
+
+    // Check event
+    const event = getEventFromTx(txReceipt, "Deposit");
+    expect(event).to.exist;
+    expect(event.args.payer).to.equal(payer1.address);
+    expect(event.args.token).to.equal(Mock20PermitContract.address);
+    expect(event.args.amount).to.equal(depositAmount);
+
+    // Verify allowance was consumed
+    const allowance = await Mock20PermitContract.allowance(payer1.address, EscrowContract.address);
+    expect(allowance).to.equal(0);
+  });
+
+  it('Escrow - depositWithPermit should revert with expired deadline', async function () {
+    const depositAmount = web3.utils.toWei("100");
+    const block = await ethers.provider.getBlock("latest");
+    const expiredDeadline = block.timestamp - 3600; // 1 hour ago
+    const nonce = await Mock20PermitContract.nonces(payer2.address);
+
+    const { v, r, s } = await signPermit(
+      payer2,
+      Mock20PermitContract,
+      EscrowContract.address,
+      depositAmount,
+      expiredDeadline,
+      nonce
+    );
+
+    await expect(
+      EscrowContract.connect(payer2).depositWithPermit(
+        Mock20PermitContract.address,
+        depositAmount,
+        expiredDeadline,
+        v,
+        r,
+        s
+      )
+    ).to.be.revertedWith("ERC20Permit: expired deadline");
+  });
+
+  it('Escrow - depositWithPermit should revert with invalid signature', async function () {
+    const depositAmount = web3.utils.toWei("100");
+    const block = await ethers.provider.getBlock("latest");
+    const deadline = block.timestamp + 3600;
+    const nonce = await Mock20PermitContract.nonces(payer2.address);
+
+    // Sign with wrong signer (payer3 instead of payer2)
+    const { v, r, s } = await signPermit(
+      payer3,
+      Mock20PermitContract,
+      EscrowContract.address,
+      depositAmount,
+      deadline,
+      nonce
+    );
+
+    await expect(
+      EscrowContract.connect(payer2).depositWithPermit(
+        Mock20PermitContract.address,
+        depositAmount,
+        deadline,
+        v,
+        r,
+        s
+      )
+    ).to.be.revertedWith("ERC20Permit: invalid signature");
+  });
+
+  it('Escrow - depositWithPermit works without prior approval', async function () {
+    const depositAmount = web3.utils.toWei("50");
+    const block = await ethers.provider.getBlock("latest");
+    const deadline = block.timestamp + 3600;
+    const nonce = await Mock20PermitContract.nonces(payer3.address);
+
+    // Verify no allowance before
+    const allowanceBefore = await Mock20PermitContract.allowance(payer3.address, EscrowContract.address);
+    expect(allowanceBefore).to.equal(0);
+
+    const { v, r, s } = await signPermit(
+      payer3,
+      Mock20PermitContract,
+      EscrowContract.address,
+      depositAmount,
+      deadline,
+      nonce
+    );
+
+    // Deposit with permit (no prior approval needed)
+    await EscrowContract.connect(payer3).depositWithPermit(
+      Mock20PermitContract.address,
+      depositAmount,
+      deadline,
+      v,
+      r,
+      s
+    );
+
+    // Verify deposit succeeded
+    const funds = await EscrowContract.connect(payer3).getFunds(Mock20PermitContract.address);
+    expect(funds.available).to.equal(depositAmount);
+  });
 });
\ No newline at end of file
diff --git a/test/unit/escrow/Escrow.test.js b/test/unit/escrow/Escrow.test.js
index 3cc1dd03..7c9dc6ff 100644
--- a/test/unit/escrow/Escrow.test.js
+++ b/test/unit/escrow/Escrow.test.js
@@ -15,10 +15,46 @@ const fastForward = async (seconds) => {
   await ethers.provider.send("evm_increaseTime", [seconds]);
   await ethers.provider.send("evm_mine");
 }
+
+// Helper function to sign ERC20Permit data
+async function signPermit(signer, token, spender, amount, deadline, nonce) {
+  const name = await token.name();
+  const chainId = (await ethers.provider.getNetwork()).chainId;
+  
+  const domain = {
+    name: name,
+    version: "1",
+    chainId: chainId,
+    verifyingContract: token.address,
+  };
+  
+  const types = {
+    Permit: [
+      { name: "owner", type: "address" },
+      { name: "spender", type: "address" },
+      { name: "value", type: "uint256" },
+      { name: "nonce", type: "uint256" },
+      { name: "deadline", type: "uint256" },
+    ],
+  };
+  
+  const value = {
+    owner: signer.address,
+    spender: spender,
+    value: amount,
+    nonce: nonce,
+    deadline: deadline,
+  };
+  
+  const signature = await signer._signTypedData(domain, types, value);
+  return ethers.utils.splitSignature(signature);
+}
+
 // Start test block
 describe('Escrow tests', function () {
   let Mock20Contract;
   let Mock20DecimalsContract;
+  let Mock20PermitContract;
   let EscrowContract;
   let FactoryRouter
   let signers;
@@ -36,11 +72,14 @@ describe('Escrow tests', function () {
     const Router = await ethers.getContractFactory("FactoryRouter");
     const MockErc20 = await ethers.getContractFactory('MockERC20');
     const MockErc20Decimals = await ethers.getContractFactory('MockERC20Decimals');
+    const MockErc20Permit = await ethers.getContractFactory('MockERC20Permit');
     const Escrow = await ethers.getContractFactory('Escrow');
     Mock20Contract = await MockErc20.deploy(signers[0].address,"MockERC20", 'MockERC20');
     Mock20DecimalsContract = await MockErc20Decimals.deploy("Mock6Digits", 'Mock6Digits', 6);
+    Mock20PermitContract = await MockErc20Permit.deploy("MockPermit", 'MPERMIT', 18);
     await Mock20Contract.deployed();
     await Mock20DecimalsContract.deployed();
+    await Mock20PermitContract.deployed();
     // DEPLOY ROUTER, SETTING OWNER
     FactoryRouter = await Router.deploy(
       signers[0].address,
@@ -59,6 +98,10 @@ describe('Escrow tests', function () {
     await Mock20DecimalsContract.transfer(payer1.address,ethers.utils.parseUnits("10000", 6))
     await Mock20DecimalsContract.transfer(payer2.address,ethers.utils.parseUnits("10000", 6))
     await Mock20DecimalsContract.transfer(payer3.address,ethers.utils.parseUnits("10000", 6))
+    // Transfer permit tokens to payers
+    await Mock20PermitContract.transfer(payer1.address,web3.utils.toWei("10000"))
+    await Mock20PermitContract.transfer(payer2.address,web3.utils.toWei("10000"))
+    await Mock20PermitContract.transfer(payer3.address,web3.utils.toWei("10000"))
 
   });
 
@@ -334,4 +377,152 @@ it('Escrow - lock', async function () {
     await EscrowContract.connect(payer1).withdraw([Mock20Contract.address],[payer1Funds.available]);
     expect(await EscrowContract.connect(payer1).getUserTokens(payer1.address)).does.not.include(Mock20Contract.address);
   });
+
+  it('Escrow - depositWithPermit', async function () {
+    const depositAmount = web3.utils.toWei("100");
+    const block = await ethers.provider.getBlock("latest");
+    const deadline = block.timestamp + 3600; // 1 hour from now
+    const nonce = await Mock20PermitContract.nonces(payer1.address);
+
+    // Get initial balances
+    const contractBalanceBefore = await Mock20PermitContract.balanceOf(EscrowContract.address);
+    const payerBalanceBefore = await Mock20PermitContract.balanceOf(payer1.address);
+    const fundTokensBefore = await EscrowContract.connect(payer1).getUserTokens(payer1.address);
+
+    // Sign permit
+    const { v, r, s } = await signPermit(
+      payer1,
+      Mock20PermitContract,
+      EscrowContract.address,
+      depositAmount,
+      deadline,
+      nonce
+    );
+
+    // Deposit with permit (no prior approval needed)
+    const tx = await EscrowContract.connect(payer1).depositWithPermit(
+      Mock20PermitContract.address,
+      depositAmount,
+      deadline,
+      v,
+      r,
+      s
+    );
+    const txReceipt = await tx.wait();
+
+    // Check balances after deposit
+    const contractBalanceAfter = await Mock20PermitContract.balanceOf(EscrowContract.address);
+    const payerBalanceAfter = await Mock20PermitContract.balanceOf(payer1.address);
+    const fundTokensAfter = await EscrowContract.connect(payer1).getUserTokens(payer1.address);
+
+    // Verify balances
+    expect(contractBalanceAfter).to.equal(contractBalanceBefore.add(depositAmount));
+    expect(payerBalanceAfter).to.equal(payerBalanceBefore.sub(depositAmount));
+    expect(fundTokensAfter).to.include(Mock20PermitContract.address);
+
+    // Verify funds
+    const funds = await EscrowContract.connect(payer1).getFunds(Mock20PermitContract.address);
+    expect(funds.available).to.equal(depositAmount);
+    expect(funds.locked).to.equal(0);
+
+    // Check event
+    const event = getEventFromTx(txReceipt, "Deposit");
+    expect(event).to.exist;
+    expect(event.args.payer).to.equal(payer1.address);
+    expect(event.args.token).to.equal(Mock20PermitContract.address);
+    expect(event.args.amount).to.equal(depositAmount);
+
+    // Verify allowance was consumed
+    const allowance = await Mock20PermitContract.allowance(payer1.address, EscrowContract.address);
+    expect(allowance).to.equal(0);
+  });
+
+  it('Escrow - depositWithPermit should revert with expired deadline', async function () {
+    const depositAmount = web3.utils.toWei("100");
+    const block = await ethers.provider.getBlock("latest");
+    const expiredDeadline = block.timestamp - 3600; // 1 hour ago
+    const nonce = await Mock20PermitContract.nonces(payer2.address);
+
+    const { v, r, s } = await signPermit(
+      payer2,
+      Mock20PermitContract,
+      EscrowContract.address,
+      depositAmount,
+      expiredDeadline,
+      nonce
+    );
+
+    await expect(
+      EscrowContract.connect(payer2).depositWithPermit(
+        Mock20PermitContract.address,
+        depositAmount,
+        expiredDeadline,
+        v,
+        r,
+        s
+      )
+    ).to.be.revertedWith("ERC20Permit: expired deadline");
+  });
+
+  it('Escrow - depositWithPermit should revert with invalid signature', async function () {
+    const depositAmount = web3.utils.toWei("100");
+    const block = await ethers.provider.getBlock("latest");
+    const deadline = block.timestamp + 3600;
+    const nonce = await Mock20PermitContract.nonces(payer2.address);
+
+    // Sign with wrong signer (payer3 instead of payer2)
+    const { v, r, s } = await signPermit(
+      payer3,
+      Mock20PermitContract,
+      EscrowContract.address,
+      depositAmount,
+      deadline,
+      nonce
+    );
+
+    await expect(
+      EscrowContract.connect(payer2).depositWithPermit(
+        Mock20PermitContract.address,
+        depositAmount,
+        deadline,
+        v,
+        r,
+        s
+      )
+    ).to.be.revertedWith("ERC20Permit: invalid signature");
+  });
+
+  it('Escrow - depositWithPermit works without prior approval', async function () {
+    const depositAmount = web3.utils.toWei("50");
+    const block = await ethers.provider.getBlock("latest");
+    const deadline = block.timestamp + 3600;
+    const nonce = await Mock20PermitContract.nonces(payer3.address);
+
+    // Verify no allowance before
+    const allowanceBefore = await Mock20PermitContract.allowance(payer3.address, EscrowContract.address);
+    expect(allowanceBefore).to.equal(0);
+
+    const { v, r, s } = await signPermit(
+      payer3,
+      Mock20PermitContract,
+      EscrowContract.address,
+      depositAmount,
+      deadline,
+      nonce
+    );
+
+    // Deposit with permit (no prior approval needed)
+    await EscrowContract.connect(payer3).depositWithPermit(
+      Mock20PermitContract.address,
+      depositAmount,
+      deadline,
+      v,
+      r,
+      s
+    );
+
+    // Verify deposit succeeded
+    const funds = await EscrowContract.connect(payer3).getFunds(Mock20PermitContract.address);
+    expect(funds.available).to.equal(depositAmount);
+  });
 });
\ No newline at end of file