Decentralized Treasury Management Infrastructure

Username

Andotlas

Grant Description

Develop a mechanism that enables token holders to block and accelerate proposed treasury movements, distributing control of a DAOs treasury to its community.

Overview

The goal of this proposal is to develop infrastructure which enables SNX token holders to directly control the Synthetix treasury. The product spec will include the ability to:

• Monitor treasury movements from a public UI
• Create a 48 hour pending window for executed treasury transactions
• Enable SNX stakers to vote to block treasury movements from a public UI
• Enable SNX stakers to vote to accelerate treasury movements from a public UI
• Enable the treasuryDAO to monitor and accept/decline public proposals

This innovation will distribute the onus of treasury management to the community and protect DAO members from malicious actors while still retaining the benefits of an agile treasury council.

Use case example: A traditional treasury rug would become obsolete as DAO community members could monitor and block such transactions.

Value to Synthetix

Synthetix will gain genuine infrastructure for treasury management, furthering its degree of decentralization and resiliency to exploitation. This is crucial as key DAO members have changed significantly over time and trust that faithful actors will be voted into the treasury has devolved to a handful of anonymous ecosystem members that few know the true identities and intentions of. Although this has proven sustainable thus far, it is conceivable that a treasury member could exploit this dynamic and queue a malicious transaction in the multi-sig that goes overlooked, endangering the health factor of the DAO. The infrastructure described in this grant proposal would enable community members to monitor, propose, block, and accelerate treasury movements in order to offer a greater degree of control and protection of the DAO treasury. Therefore, the value of this proposal can be measured in terms of the treasury funds it protects which is currently over 50M in assets.

Project Implementation Plan

A project manager will work with a developer to build a set of smart contracts that will achieve the above specifications. The project will follow this development path:

The project manager will work with a freelance designer of his choosing to develop the designs for any frontend work required to enable the community to interact with this infrastructure. Estimated delivery: 1-2 weeks

Concurrently, a developer will begin development of the smart contracts required for decentralized treasury management. Estimated delivery time: 2-4 weeks

Once UI designs have been developed, a developer will work with the project manager to identify and employ a frontend developer to execute on the development of the designs. Estimated delivery time: 2-4 weeks

The project manager and developer will work with Synthetix and Kwenta to trial and iterate on the treasury management tool. This would be an appropriate stage for the grantsDAO to check-in, review the product, and provide feedback.

Once an optimal state for the project has been established, the smart contracts will be submitted for audit to an auditor of the project manager's choosing.

Estimated delivery time: 2 months

Additional Information

Quorum for blocking or accelerating a given proposal will be defined as surpassing 50% voter support of all staked SNX.

The code used in this deliverable will be open-sourced under the MIT license. The implementers intend to use this infrastructure for a productized tool which will offer council-centric DAO infrastructure to other protocols. The intention is to create a cashflow-positive product that can permanently address genuinely decentralized infrastructure development, maintenance, and innovation for the DeFi space based on the success of the Synthetix ecosystem.

Funding Request

60 hours of solidity work at 250 USD/hour: 15000 USD 80 hours of frontend work at 125 USD/hour: 10000 USD 20 hours of design work at 125 USD/hour: 2500 USD PM Bonus: 2500 Audits: ~15,000 USD

Total: 45,000 sUSD