Introducing the DVF DAO Treasury – A Gnosis Safe controlled by DVF Stakers (xDVF) via SafeSnap, with a backup council.
We have always believed that together, with the combined power of our community, we can make DeFi truly accessible.
With the launch of DVF, distributed governance is now at the heart of the DeversiFi protocol. There are now over 600 holders of DVF with the power to shape the future. DVF token stakers will be able to change key parameters of the protocol, as well as spending community owned funds from the DVF DAO treasury.
As the DVF DAO treasury will contain millions of dollars worth of DVF tokens and other crypto assets it is important that there are several layers of safeguards in place.
Read below to understand more on how the DVF DAO treasury will work, the fail safes that are in place, the DVF council selected to safeguard the treasury, and the key next steps.
How does the DVF DAO treasury work?
At its core, the DVF DAO treasury is built on top of a Gnosis Safe multisig deployed on Ethereum, and upgraded to use the SafeSnap module for completely off-chain token holder voting. This will make the DeversiFi community one of the first communities to use SafeSnap for governance and treasury management.
The treasury address is: 0x4788aa3becbf5f7c9fd058372b4a3fc7c75df201
The DVF DAO treasury is the Ethereum address that contains all of the funds raised in the DVF DLM, community-owned on-chain liquidity positions (eg the SushiSwap DVF/USDT position) and the 50%+ of total DVF token supply that is owned by the treasury. DVF holders are in full control this treasury and exercise their voice by staking their DVF tokens (for xDVF), submitting and voting on spending proposals.
A Gnosis Safe is a multi-signature control system that means that no funds can be moved from the DVF DAO treasury address without approval from DVF holders (via xDVF staking and voting)
Off-chain voting means that any DVF holder can stake their DVF tokens for xDVF tokens and vote on DVF Governance proposals without paying any gas fees. This is important to ensure wide participation in DVF Governance.
Today many token communities that are aiming for decentralised governance rely on a trusted group of multisig holders to execute transactions on their behalf (sometimes with a timelock contract).
This is a compromise that in most cases has been made because it removes the cost for token holders to participate in governance, and gives a high degree of flexibility. However it places a very high degree of trust in the members of the multisig to act honestly and to honour any off-chain voting done via transparent interfaces such as Snapshot.
SafeSnap is a new solution created by the GnosisSafe team to solve this problem. It provides the same benefits, but without needing to place so much trust on the shoulders of multisig holders!
The SafeSnap integration means that DVF stakers (xDVF holders) can vote on major proposals without paying gas, regardless of whether their xDVF is held on layer 1 or layer 2. Gasless voting is essential to ensure wide participation in DeversiFi & DVF governance.
Once a governance vote is passed successfully via Snapshot, SafeSnap allows the trustless on-chain execution of the proposal.
SafeSnap gives xDVF holders the following benefits:
- Completely free voting without requirement for any on-chain cost
- Able to take into account balances on both L1 and L2
- Direct execution of transactions that are voted for in a secure manner without relying on an elected multisig to execute on behalf of token holders
Are there any failsafes?
During the critical first few months of DeversiFi & DVF governance a kick-ass council of well known DeFi builders will be the final line of protection for the treasury and governance process. The DVF council will have a veto on any proposals that pass governance and will act as a backstop in the event of the following:
- Proposals succeed at passing through the governance process due to a previously unknown bug or exploit, but which do not represent the best interests of DVF holders
- The timing of execution for a proposal means that it is no longer valid or in the DAO’s best interests
- The governance process needs replacing as it is not fit for purpose
The majority of the value held by the community treasury will be in DVF tokens, but most of this will not be held directly, but instead will sit in a separate lock-up contract and be released linearly over 3 years.
Who are the DVF Council members?
The DVF council is made up of the following well known and trusted individuals & entities:
- The AAVE multisig
- Jordan Momtazi (Synthetix)
- Sid Powell (Maple Finance)
- Mona El Isa (Enzyme)
- Will Harborne (DeversiFi)
- Ross Middleton (DeversiFi)
- Anna Rose (Zero Knowledge Podcast)
- Anthony Sasanno (The Daily Gwei)
Note that the council only has the power to veto proposals and they cannot bypass the governance process to execute proposals. They act as a backstop and do not have the power to either spend funds from the treasury to change DeversiFi parameters without first submitting a proposal to xDVF holders for approval.
What are the next steps for the DVF DAO treasury?
Over the next few weeks the following actions will be taken:
- SafeSnap integration (this is a smart-contract upgrade for the Gnosis Safe, adding an additional module)
- Council permissions will be upgraded from 1/9 to 6/9
- The community liquidity positions (resulting from the deversifi launch market), in both Sushiswap SLP and Uniswap V3 NFTs, today worth ~XM USD will be transferred to the treasury
- Community owned DVF (50%+ of the total DVF supply supply) will be transferred to a lock-up contract which will feed it to the treasury over the next 3 years
Once the governance process has been battle-tested, the training wheels will be removed and the backup council can be dissolved by community vote!
After the remaining components of the governance stack have been deployed xDVF holders will be able to vote on the first governance proposal. Over the next few weeks the first proposal will be put to the vote and you will be able to try the novel new off-chain voting process for the first time. Stay tuned!
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