YOP Multi-Sig Wallets

As we near our private launch, we felt it would be a good time to share some details around the use of multi-sig wallets and how we plan to use them with the goal of “DAO-ifying “our protocol for the future. Let’s dig in!

Multi-Sig Wallets

Multi-sig wallets are smart contracts that allow the creation of multiple keys/owners. They require a minimum number of people to approve a transaction before it can occur (M of N).

An everyday use case is for managing pooled Decentralised Autonomous Organisation (DAO) funds. DAOs often require a certain number of members to sign off on fund transfers or execute sensitive transactions. These actions are generally voted upon by members and then executed by a group of signers.

For YOP, we’ve decided to use Gnosis Safe (gnosis-safe.io) as our platform.

Why Gnosis Safe?

Gnosis has been developing blockchain-based fund management solutions since 2017, earning a solid reputation in the industry for engineering and security expertise. When we reviewed it, there were a few things we immediately liked:

  • Safe UI is easy to use and feature-rich.
  • Safe Core SDK provides extensive developer tooling to make interacting with the Gnosis Safe contracts and services accessible.
  • Safe transaction service is an API maintained by the Gnosis team and keeps track of transactions sent via Gnosis Safe contracts.
  • Safe Apps — Gnosis Safe allows developers to extend its functionality by adding custom apps that allow for a variety of customisation.
  • Network & Wallet Support — Gnosis supports an extensive list of ever-growing networks and wallets.

The development team is excited by the extensive SDKs and Gnosis safe tooling. We are focused on building and extending tooling around this ecosystem.

How we will use Gnosis Safe at YOP

At launch, YOP will use Gnosis Safe to manage funds, execute transactions on our contracts and handle gas refunds. Transactions are created manually and by automation as we build out a suite of governance tooling around the multi-sigs.

The Gnosis safe-transaction service allows us to create a list of additional safe owners who can propose new safe transactions but not sign or execute them. This feature will enable us to build intelligent contract configuration as part of our CI/CD pipelines without requiring our tooling or development team to have elevated permissions locally to execute transactions. This is a critical security measure to tackle private key exploits, an ever-growing concern in DeFi.

We will be using Gnosis Safe spending limits for gas refunds, which allows us to set rules for a specific list of beneficiaries to access safe funds without collecting all signatures. These limits are amount and time based and will enable us to be speedy with refunds and provide a complete audit trail.

These features will allow the YOP team to discover tedious or repetitive actions in providing governance over the protocol. We aim to resolve these iteratively by building robust tooling and processes for the community as a starting point to allow for a smooth transition into a DAO, as outlined in our roadmap.

Role-Based Multi-Sig Wallets

We’ve created multi-sig wallets that are mapped directly to our YOP ecosystem roles to provide a flexible and extendable approach on areas such as a minimum number of approvals (M of N) and contract permissions. Below is a summary of these roles, but you can read more in the YOP whitepaper.

Governor | Safe: yopGovernance | Quorum: 4/8

The governance safe controls how the YOP protocol is configured and executed. For example, it can run method calls across all contracts.

Gatekeeper | Safe: yopGatekeeper | Quorum: 2/7

The gatekeeper safe can manage access policies and vault configurations with these access policies. Gatekeepers can also define vault deposit limits and invoke vault emergency shutdowns.

Manager | Safe: yopManager | Quorum: 4/8

The vault managers safe can set day-to-day vault configurations such as adding/removing strategies, setting performance fees, ratios/harvest settings etc.

Strategist | Safe: yopStrategist | Quorum: 2/7

The strategist safe can set the configuration of strategies such as the rewards address, strategy metadata and harvest/tend calls. The strategist safe can also invoke strategy emergency shutdowns.

Harvester | Safe: yopHarvester | Quorum: 1/7

The harvester safe can only call tend or harvest methods on a strategy.

Conclusion

Gnosis Safe is incredibly powerful, and it allows us to manage the protocol while keeping security and transparency at the forefront of our vision for the community.

At YOP, we’ll continue innovating governance tooling for the protocol before moving to a DAO. We would love to hear from you if you have questions or suggestions — join the YOP Discord Server.

By Alan Moran: Senior Full Stack Engineer. Problem Solver. Working on DeFi and Metaverse. Twitter:@ialanmoran | LinkedIn: ialanmoran

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YOP — Yield Optimisation Protocol

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