We’ve been getting user feedback and requests for a tool to manage particular permission for trading on CoW Swap.
It is common knowledge that DAOs struggle to manage their treasuries efficiently and in a decentralized manner. The main solution so far was to delegate this responsibility to a dedicated treasury manager. But this solution introduces new risks and trust assumptions for the safety of the funds.
The solution is a special treasury management tool that allows DAOs to nominate a "treasury manager" and limit his ability to only trade specific allowed tokens on CoW Swap.
This is enabled by Zodiac Role Modifiers (V2, expected on February) modules on Gnosis Safe
And what makes it MORE interesting is that in the interface, we can allow the "treasury manager" to also deposit (Invest) into a list of yield protocols, by allowing them to swap directly into the yield bearing tokens through solvers, while maintaining the simplicity of the security structure.
Few key components is being developed in an attempt to improve on the current status quo:
Zodiac Role modifiers allow to limit the scope of interactions the DAO allows based on roles. They exist for a while now but unfortunately ATM, they don’t allow verification of individual parameters in a CoW Swap order. This is necessary to verify that the recipient is not changed to an account that is not controlled by the DAO. Fortunately, Zodiac is working on their second version of Role Modifiers that will allow verification of specific parameters within a CoW Swap order. This opens a host of possibilities:
Solvers can implement any arbitrary liquidity sources and path finding logic. This includes depositing, wrapping, etc of tokens. This is great for liquidity of tokens that do not have native liquidity pools, but it could be a boon for the Treasury Management Toolkit!
Lets take Yearn as an example, treasury managers would definitely want the ability to deposit and withdraw from Yearn vaults in order to optimize their yield strategies. But this requires to develop a dedicated role modifier. Doing so for every lending platform, and every yield protocol is time consuming and adds significant development cost and vulnerability attack surface.
By combining the power of Zodiac Role Modifiers (V2) and SeaSolver, we can offer a comprehensive treasury management toolkit that allows the manager to tap into any protocol without the need for a dedicated role modifier. What is needed is only for SeaSolver to support depositing into that protocol and the DAO to add the corresponding yield bearing token to the allowed list of tokens to be traded by the manager.